I cannot believe I am writing about Dogecoin, but I feel I must. This past Saturday, on Saturday Night Live (SNL), Elon Musk hosted the show. I usually do not watch SNL, but I recorded this one, in particular, to view solely because of Elon Musk. I counted four times in which he or the cast of SNL said "Dogecoin." In my opinion, that is four times too many for this meme coin.
Now, I am biased on cryptocurrency and the whole idea of blockchain technology. I mean, look at me! I'm writing on a crypto-blog site. Up until this point, I have expressed the benefits of individual cryptocurrencies and how they operate. From my initial post about VeChain (VET) to my most recent post about Cardano (ADA), I have shown how they can revolutionize the tech-heavy world around us.
This post will be slightly different. I'm going to express my opinion on why Dogecoin and other meme coins are detrimental to Bitcoin's movement and cryptocurrency all together. I'll explain why Dogecoin is explicitly a terrible investment.
---Disclaimer: I am not giving investment advice, I am only making you aware of the recent news regarding cryptocurrency so you can better understand the coin, technology, and the overall effect cryptocurrencies are currently having in the world we live in.---
At the end of Elon Musk's opening monologue on SNL, his mother asked if her Mother's Day gift would be Dogecoin, and Elon responded by saying, "It is." If I were to receive Dogecoin as a gift unwillingly, I would not be too upset. I would liquidate my position and put it into ANY other cryptocurrency that is not a meme coin. I can list better cryptocurrencies than Dogecoin, but it would take up a majority of this post.
If you're reading this and invested in such coins, I'm not trying to belittle you or your investments. Dogecoin could be a form of investment where you "stick it to the man." Not too long ago on Wall Street, meme-stocks such as GameStop, AMC, and BlackBerry saw unusual increases because a wave of Reddit users decided to ban together and manipulate the market. One of the things you need not have when investing is emotion. These Reddit users invest emotionally, and the same goes with investing in Dogecoin. If you combine emotion and greed, you get a real evil duo.
Sure, some might call me a "hater" because I express why I do not like Dogecoin. Still, in Dogecoins actual Whitepapers, it says, "Billy Markus and Jackson Palmer developed Dogecoin as a fun and light-hearted cryptocurrency." Dogecoin might appeal to a more broad audience than what Bitcoin's audience currently has. The Whitepaper also states the amount of Dogecoin available in circulation.
Let us put into perspective the amount of Dogecoin available now in circulation. 128,000,000,000 (128 Billion) is the total amount now, and there is no end to the amount of Dogecoin being mined. Dogecoin is the exact opposite of Bitcoin. Honestly, the only thing Dogecoin and Bitcoin have in common is that both cryptocurrencies use Proof of Work as their method of mining new coins.
I'll make an assumption here, but with the amount already over 100 billion and no end in the amount of Dogecoin being mined and its reason for being developed, it has absolutely no intrinsic value. Intrinsic value is the measurement of what an asset is worth. With no scarcity being shown, as well as Dogecoin's very creators expressing the coin as a "fun and light-hearted" cryptocurrency alternative, this screams stay away.
If you like gambling, which I don't (other than betting on the Kentucky Derby), maybe Dogecoin is for you. If you are as passionate as me about the potential of cryptocurrency, then I would not touch Dogecoin with a 10-foot pole, even if you are wearing gloves and a mask.
Don't get me wrong; The jokes are funny surrounding Dogecoin and it "mooning." If you are unaware of the phrase "To the moon," it refers to an investment that reaches prices that are out of this world. I don't like individuals throwing money they cannot afford to lose into something they know very little.
Until next time,
Seth Hinkle
Websites used:
Jaid, Sagar. “Dogecoin (DOGE) Whitepaper.” COINnws, 8 May 2021, coinnws.com/dogecoin-whitepaper/.
Picture used:
https://cdn-images-1.medium.com/max/380/0*5vmJDj_Sp6Pjf2xF.jpg