No joke, Dogecoin is just a joke.
Its creators took a copy and paste of the Bitcoin code, tweaked a few details, and added an Iba Shinu dog logo for fun.
It has had virtually no technological innovation or development in seven years.
There are no MIT professors advocating it in government, no global network of top CEOs touting its security, and no corporations sponsoring top software engineers to further develop its resilience like we are seeing with Bitcoin. Even Elon Musk spoke on Clubhouse saying his tweets are just in good fun and simply a joke he finds funny, and that Bitcoin is well on its way to mainstream adoption.
The market at the beginning of this rise of Dogecoin was well under $1 Billion in total value. Meaning, compared to Bitcoin’s new high of $1 Trillion total market as of today, it takes a fairly minuscule amount of money to pump Dogecoin to 10–20x their value in a short time, as we’ve just seen. But where is the value? Where is the utility? How secure is this cryptocurrency from a hack if it accrues too quickly in value relative to its development?
To date, Bitcoin has proved itself secure for over a decade, securing at least tens, if not hundreds, of billions of dollars in total market value and trillions in transactional value without a single failure. And its code has never changed from its maximum supply of 21,000,000 coins. This is why Elon moved $1.5 Billion into Bitcoin on the Tesla balance sheet, not Dogecoin.
My fear is that a lot of retail investors seeing a penny coin chase the dream of buying into the next Bitcoin only to find the abandoned project never becomes a true technological phenom like Bitcoin and Ethereum are already becoming. Some may learn a hard lesson in this process as zero is a long way from its ~$7.5 Billion in total current market value.
Then again, memes do rule the world on the internet. So maybe I will learn the hard lesson by not investing? That’s why I remain open to changing my mind as new information presents itself, but for now, I’ll keep the majority of my wealth in the best money humanity has ever created in Bitcoin.
