Is There a Cryptocurrency Bubble? Just Ask Doge.

from NYTs

Jackson Palmer no longer thinks it’s funny to imitate Doge, the internet meme about a Shiba Inu dog whose awe-struck expressions and garbled syntax (e.g. “Wow. So pizza. Much delicious.”) made him a viral sensationseveral years ago.

But if he did, he might channel Doge to offer a few cautionary words for investors who are falling for cryptocurrency start-ups, Silicon Valley’s latest moneymaking craze:

Very bubble. Much scam. So avoid.

Mr. Palmer, the creator of Dogecoin, was an early fan of cryptocurrency, a form of encrypted digital money that is traded from person to person. He saw investors talking about Bitcoin, the oldest and best-known cryptocurrency, and wanted to find a way to poke fun at the hype surrounding the emerging technology.

So in 2013, he built his own cryptocurrency, a satirical mash-up that combined Bitcoin with the Doge meme he’d seen on social media. Mr. Palmer hoped to use Dogecoin to show the absurdity of wagering huge sums of money on unstable ventures.

More here.

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One Comment

  1. In the tech world, and probably in current events and business, Bitcoin was arguably one of the most commonly used words in 2017. It seemed as if every time you check the news there was something about Bitcoin. Bitcoin is an old cryptocurrency which exploded in 2017 which is why it gained so much media attention and popularity, and therefore gained value as well. As for Cryptocurrencies as a whole, Bitcoin, Etherium, Litecoin, Ripple, Dash, and many more that seem to be popping up everyday, the question is often asked, is it a bubble? The bubble in this case referring to something that gets bigger and bigger and eventually pops, such as the cryptocurrency market. Mr. Palmer, creator of DogeCoin, a cryptocurrency originally created as a joke strongly warns users and investors of coins of the possible bubble burst. I believe that someone such as Mr. Palmer has the authority to speak and give reliable advice on this topic because of his experience watching his own coin gain popularity and benefit charities before falling apart. As mentioned in the article, the dot com boom should serve as a sign to what may be to come for the cryptocurrencies.
    While I think he has many valid points, and some successful currencies may crash, I do not think the industry as a whole will crash any time soon. There are some long lasting cryptocurrencies that have a solid foundation and will likely last longer than many of the other rapidly appearing coins. However, one thing that I do think may affect the industry, for better or worse, could be the regulation of them by the government. It is indeed a risk to invest in something that is not backed up by the government, but so far it has been legitimately working for people. We saw a major hit to Bitcoin’s prices when China began regulating portions of the cryptocurrency industry. I think that even if government authorities step in, the cryptocurrencies will still be strong for two reasons. First, people will be more confident in investing, assuming the coins can get along with the government. Or second, certain cryptocurrencies will simply move from the market to the black-market, gaining value in the process as with any black-market item.
    Finally, I do think it is important to mention that while some consider investing in cryptocurrencies risky and short term, or a way for fast cash, it is also a way to make a serious amount of money. If you spent $1000 investing in 10 Bitcoins at $100 each in June of 2013, the value of those coins today would be over $100,000. Many coins fail and few gain this sort of power, but at one point Bitcoin was worth only a few cents.

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