Cryptocurrency / Blockchain
The bubble might have serious consequences.
Dogecoin is the GameStop of the crypto world.
I don’t need to mention that the coin isn’t an innovation(and yet some don’t know that).
Nevertheless, I’ve invested. During the last hype, I bought Dogecoins for over $300. My position was plus 70% in a short time, but this article is not about whether it was a good or bad investment.
I regret the decision because Dogecoin is much more than just an investment.
Dogecoin is a statement about the entire crypto market, and here’s why.
Functioning markets should regulate themselves, so a widespread assumption.
This means that bad cryptocurrencies are not overvalued.
In the case of Dogecoin, there was a market capitalization of over $40 billion in meantime.
For a meme coin, that’s way too much. But what’s the problem if the market doesn’t regulate itself properly?
The problem is that the government usually gets involved.
Whenever an asset class seems too “risky” for ordinary investors, government institutions start paying attention to it. Sometimes it looks like they want to play the hero.
Some states are already targeting the crypto market anyway — in countries like Morocco, and Egypt digital currencies are entirely banned¹.
The GameStop bubble also had severe consequences — although it only affected the good old stock market. As a consequence of the bubble, members of the Democratic Party have voiced their support for a possible financial transaction tax².
The SEC Urges Company Disclosures on Fundraising During Market volatility³.
The Dogecoin bubble was a loud bang, and those interested in regulation heard it.
Possible regulations for the crypto market scare all holders — High taxes, bans, or restricting exchanges could cause prices to collapse.
No one who invested in cryptos is interested in that.
That is exactly why I regret, as a proud hodler, to have participated in the bubble.
We also shot ourselves in the knee in another place.
The market should regulate itself by treating Shitcoins like Shitcoins:
Not paying attention to them or criticizing them.
We overvalued Dogecoin— partly out of financial interest or just because we find it funny.
I like Elon Musk — but his tweets about Dogecoin can be criticized.
No, he didn’t call on anyone to buy Dogecoin. But still, he gave a lot of attention to the coin, which has immense effects.
Elon’s tweets always set something in motion — whether he wants them to or not. He even inadvertently made a stock 5000% gains once.
When a cryptocurrency trends, it always pulls a lot of people on board.
Of course, as the crypto scene, we cannot be held responsible for individuals’ investment decisions.
But should we maybe rethink how we present individual cryptos to the outside world?
Even for me, the sudden rise of Dogecoin caused a lot of fear-of-missing-out — that’s precisely why I invested.
But in terms of the whole scene, we should behave professionally.
Newcomers and first-time crypto investors should not have bad experiences — our reputation is not very good anyway.
We should pay attention to severe and promising projects.
We should not buy any meme-coins for “fun.”
But above all, we should be honest.
I wish I had tweeted what I really think of Dogecoin. We have created a completely wrong image. Yes, I even know an older man who thought Doge was an official Tesla-coin.
I regret the decision to have bought Dogecoin.
For the sake of the entire crypto scene, we can only hope that the bubble will not have serious, negative consequences.
[1]: https://www.loc.gov/law/help/cryptocurrency/cryptocurrency-world-survey.pdf
Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://medium.com/illumination/dogecoin-1be81e65cf13?source=rss——-8—————–cryptocurrency
