Dogecoin is Plummeting - what is going on?
Dogecoin was rising steadily, now it is falling like a rock. What is happening?
That whole shit is pretend.
Pump and dump?
https://www.coindesk.com/price/dogecoin
Dogecoin emerged in 2013 as a joke. It was created by Jackson Palmer and Billy Markus to satirize the growth of altcoins by making the doge internet meme into a cryptocurrency. While it was birthed as a joke, it actually led to some practicality as it’s large supply and low price facilitated efficient micro-tipping content on social media. It is a derivative of Luckycoin which forked from Litecoin and uses a Scrypt algorithm. Dogecoin has 1 minute block intervals making it faster than other blockchains. There is no cap to the supply of coins and thus the coin can inflate infinitely.
I ought to release my own crypto: I’ll call it “asahi coin” or “cat coin.” Then I’ll beg Elon Musk to tweet “To the moon!”
As long as Musk includes “Kapow! Alice…” on the front I’m in.
I sneer at the trend of most cryptocurrencies being deflationary. I want to see a hyper-inflationary cryptocurrency called “Zimbabwecoin” !
It previously had a rise that was just because someone famous person tweeted about its existence. So I suspect that this created a bubble that is correcting itself.
Dogecoin fans also sponsored a race car some years back. Clearly it’s time for another meme-themed racing livery.
As I do not understand how it had value in the first place I cannot explain a loss of that vslue.
Oops!
Zimbabwecoin: I like it.
How about Weimarcoin?
On a serious note, I have a bad, bad feeling that all of this low-interest - check that: nearly interest-free money - floating around is going to lead to the bubble to end all bubbles sometime in the next 5-10 years.
It wasn’t “Rising steadily.” It was hovering around 5 cents for months, then it shot up to 40 cents over just a few days.
Who would have thought that entrusting your financial assets to an unregulated entity could go wrong?
From my intermittent observations over the past 8 years, it seems that every time the Federal Reserve makes the slightest noise about raising interest rates or weaning the country off quantitative easing, the stock market throws a fit and the Fed has to walk back their comments.
So I don’t think it will happen in a 10-year timeframe. But you’re right, IMO most of this free money entering the economy is being diverted to assets like the stock market or cryptocurrencies, and eventually there will be a reckoning, the Fed and other economic brokers can’t keep inventing new financial hijinks to get around it.
Back to the topic of the OP: maybe the fact that Turkey recently banned cryptocurrencies as payment is a contributing factor?
The Fed is only one central bank (though perhaps one of the more powerful) so it’s not entirely responsible for the state of the world economy. There is a vast amount of money in most countries looking for investments and interest rates everywhere are near zero. Hence, the interest in the stock market.
I can’t explain the interest in cryptocurrencies or crazier things like NFTs, though.
Dogecoin is and has always been a joke cryptocurrency. The recent rise in price was a clear pump and dump, and it was even advertised as such by people wanting it to get it to $0.42 on 4/20. It’s memes all the way down.
If the crypto bubble isn’t it, I’m terrified of what a bigger bubble to end all bubbles would look like.
At one point, someone had a website or application that could just create new cryptocurrencies and I think there were, or perhaps still are, hundreds of them out there.
My understanding is that the issue of a bubble of this sort is that it’s too many dollars chasing too few goods. In theory, shouldn’t the answer be that we (collectively) need to produce more goods?
As far as dogecoin goes, I don’t see how it’s any different than Monopoly money.