The Dark Side Of The Rise Of Dogecoin
Hey Jesspeculators
2021 has indeed been the year of the doge; some fear the doge, others embrace the doge, and some have even been dubbed the dogefather, aka Elon Musk, who has fueled the speculative mania with his tweets and cult-like Twitter following.
Dogecoin was created as a joke and remained a joke, but as more people pile into these meme coins and meme stocks, weird narratives have begun to emerge to justify the price appreciation. I've even seen people argue about the intrinsic value of doge and why it is a viable investment.
I own doge; I've had it for years; it's never been an investment to me. It was just something I messed around with during my shitcoin phase. I eventually learned more and moved on to Bitcoin, but I don't see why a random crypto meme token can't exist.
Sending it around tipping people is fun, but it's started to take on a whole new get rich together Ponzi like theme in recent months. People who don't know the difference between dogecoin and stocks are buying this thing, and it's really spiralling out of control.
I've even seen stories of people going all-in on the doge, as in their entire life savings; now that's scary.
I honestly don't know if people are trolling or believe the crazy narratives; I've seen so-called professional investors say don't right off doge, the network effects, hey Mr Real vision. It's really gotten that far that dollar junkie will give anything a shot as long as the price in US dollar terms goes up.
Volatility doesn't die. It moves
Watching a whole lot of financial content, I think everyone is accepted that there is going to be intervention from governments at certain points of failure and break down. Providing liquidity, bailouts and softening the blows for speculators puts a damper on volatility and removes risk from the system.
Instead of people being rewarded for allocating capital to good projects and punished for backing bad ones, it's just we'll save you from speculating another day because you've already created jobs.
It sounds nuts, but that's basically what I see happening. When you're always coming to the rescue in markets, volatility is hidden, or it moves somewhere else. I think this is why Bitcoin and the wider market of random coins have become too popular. It's a free market; no one is coming to save you, regulate you, bail you out, it to the moon or bust, and people seem to love it.
Now there is nothing wrong with speculating, gambling and taking a moon shot, but I think this has become a lot more sinister than that.
Speculation based on hope now based on nihilism
Previous speculative bubbles from the radio, railroad, dot com and more, had something tangible attached to it. Bitcoin even goes through its programmatic bubble phase where it gets overbought, but it is trying to solve it. The system might not be ready for all that capital yet, and it corrects with time, but you can see where it's going.
Businesses are being built, jobs are created, industries are being disrupted, and deflation comes into play as more efficiency is brought to the financial system through this new bubble called Bitcoin.
In the case of doge, however, it was created as a joke a meme, and while it was fun then, people are taking it way too seriously now. I feel like it's become a sense of financial nihilism.
Investors are signalling to the market that they feel hopeless, the system has failed them, and they'll much rather take a flyer on dogecoin than participate in the rigged economy.
Why be cautious? Why save? It's getting you nowhere; just YOLO into doge instead. Instead of misallocating capital based on a hope of a new future, this is a misallocation of capital based on mocking the system.
Capitalism should incentivise value creation
Capitalism is broken; I am not here to debate the merits of it and if we should have another system. I think capitalism works fine; the implementation is just well off point when you have a fiat money system. The same would be with socialism or any system you create; fiat money would rip it apart eventually.
The whole reason I bring up capitalism is that its founding principle is one that if you allocate resources accordingly, if you create value, you get rewarded.
Dogecoin is meme'ing capitalism; it's saying it doesn't matter what the asset is or what it does. It can be completely useless, and we can still make it worth more than these so-called big tech companies and certain countries mismanaged currencies. A dogecoin is worth more than my local currency, and that speaks volumes.
Mocking the system
I totally understand why people feel that way, I feel like the system has failed me too, but I've taken on a different approach. Focusing on Bitcoin, trying to stack slowly and participate in building a new economy that values saving and the principles I believe in.
Dogecoin seems to be an antithesis of that; yes, both Bitcoin and dogecoin feel like the system needs reform, but with Bitcoin, I feel like there's hope, there's a plan, but with dogecoin, I feel like it's a case of let's bring this fiat thing down without a real solution.
Have your say
What do you good people of HIVE think?
So have at it, my Jessies! If you don't have something to comment, "I am a Jessie."
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I think this was well stated and on point. I tend to also think it’s still good for the space as a whole as people are looking outside the traditional system.
I hadn’t considered the Doge trend in terms of a finger in the air before. I just thought of it as people over excited and under educated but after reading this I think you have a valid point.
It’s the same “let’s just fucking burn it already” mindset that brought about the outcome of the 2016 U.S. presidential election.
Since it’s broken beyond repair might as well drive it into the ground.
I do think there is an element of various narratives, uneducated, the get rich quick, those who follow hype, those who are just followers of Elon and then the cohort I mentioned above
What I do think though is regardless of their primary motivations for gettin in to doge the overall sentiment be it subconsciously is this is so broken it doesn’t matter, value doesn’t matter, if we just get enough people to flow into something it has value
It’s meme’ing investment and the fiat system. The sad thing is exchanges are jumping on and trying to profit from this
Yeah, but how could they not? When people are telling you to shut up and take their money, ya know?
Yeah I get it, if say coinbase doesn;t do it someone else will and take that profits, but what I am saying is theres no adult in the room, no ones there to put the breaks on
The money pretty much shifts around to where people think they can earn money. For the most part, anyone who jumps in on the train after it has already started is just gambling. It's similar to the stock market where there is almost always sector rotation every once in a while.
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Absolutely it's not about value or fundamentals it's all about flows, try to catch the flow at the right time and exit before flows dry up and move on to the next.
It's all pump and dumping those in the know are willing to sucker in as many people as they can and profit the funny thing is they taking profits in something that continues to devalue, fiat so you have to get back in eventually or you lose so it's a constant game of hot potato
I cant believe myself, I just upvoted post about doge/
I don't do this normally
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There's always a first time for everything no need to fear the doge! As long as the post is not shilling it I guess it passes the test lol
🤣🤣🤣 I advice you read well next time...however who know what dodge coin will turn to be tomorrow. Lol
Very true
When we see something pumping and wanted to join the train by investing in it because we want to just book some profit without doing research and understanding the roadmap we are putting our hard earned money into danger where we could loose everything.
Today because of technology, it’s very easy to create a crypto currency and influence people to buy it. You just need a famous name. Is not it ?
Yeah just a personality with A following on social or a random media mention and you're off to the races! People are so desperate that risk is no longer a factor it's just YOLO this is what happens when your systems base money is totally corrupt people don't see holding it as valuable and working for it only gets you so much so they'll take any risk that can get them ahead
😀😀😀 it is bro, I guess we have to create one together find a famous name and give it a logo to see the outcome.
Well don't worry about getting fame I can boom that.
However is not so easy as it stands.
You don't have to, you already see what Elon did with doge and dummies and what Dave Portnoy did with safemoon there's enough suckers willing to listen to these nutters
We saw a similar thing the US with the auto companies several years ago. GM and Chrysler had to be bailed out by the government. Ford kept chugging along. That was part of the reason I picked up some Ford stock back in the day. I was really impressed that they didn't have to take a bailout. It hasn't really paid off for me, but oh well. I agree, we will see similar things with crypto. People have a hard time taking and accepting a loss these days. They will likely cry an the government will step in.
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I get you, investing in stocks has become harder now making the rational doesn't always pay off because of flows
In stocks however, Algos and passive dominate and it's price incentives buying you can check Mike greens analysis on this and if it breaks its systematic breaking so the fed comes in to rescue it
If it does revert you can be sure there’ll be bail outs I was listening to Chris cole and his already speaking about them coming up with a new reason for stimulus
I actually have quite a lot of money invested in stocks and mutual funds. It is where all of my money was going before I started getting into crypto. Now that I am into crypto, I haven't changed any of those investments, I just keep letting them do what they are doing. I expect we will hit a large road bump here in the future, but it shouldn't be anything that can't recover by the time I need that money.
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What you said is true but i can't really narrow down what's going on in dodge coin.
The traffic on dodge is increasing daily while BTC is struggling .
What I don't know is Musk plan on dodge, but I hope with time we will see the outcome.
It's all about flows the exchanges don't care they getting money on trading fees, musk doesn't care his having fun, retail doesn't care they just trying to YOLO trade it's all people asleep at the wheel and because the measurement of success is the price in dollars anyrbing that goes up means good and keeps attracting new suckers
Apart from all that, the DOGE has no use value other than speculation, it also has no issuance limit which makes it dangerous and also its purchase is mainly for pure FOMO, so when elon feels like throwing it all down, it will happen since it is a worthless currency.
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I think Dogecoin is trying to become a store of value like Bitcoin but is also battling with a get rich quick undertone, thanks to Elon Musk. No doubt the gains got from Doge are pretty neat and I took mine out and used to invest in other alts, because why not? But eventually, the noise will die down and reality will set in. It can't compete with Bitcoin, that's for sure.
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It’s not trying to be anything but a joke it’s never been worked on in years and it’s inflation keeps growing with no cap in site. It’s not a store of value it’s basically become a battle ground for flows as retail don’t care about the underlying asset they just care if it can be moved up or down
Adding any sort of narrative is just trying to justify something that’s not there
I collected Dogcoin just for the Fun of it since I was just collecting Satoshis and Litoshis from faucets at the time. Spending idle time between clients, waiting for the bus, etc. It was a bit of fun hanging around the Dogecoin Reddit community with everyone tipping one another like crazy. Then I socked it away in a cold wallet.
It was just play money of little value then and I'd never expect this media driven mania to happen out of no where.
I have been diversifying my Dogecoin capital into other coins, tokens and a bit of splurge shopping.
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Me too I collected doge from faucets and got tips I didn’t think of it as an investment and I still don’t! It’s just amazing how any improvement in relative purchasing power of any token doesn’t matter the reason why people her hot and horny about it and try to shape some kind of story
You can’t sprinkle sugar on a shitcoin and call it a donought