Cryptocurrency Bubble

Bitcoin has a lot of believers and has had massive returns, but Bitcoin has got nothing on Dogecoin.

If you wanted to design a perfect currency for the farce that our financial system has become, you couldn’t do better than Dogecoin. It was created as a joke, it has no real value, but investors are feverishly gobbling it up as if it was the greatest investment that any of us have ever seen. A lot of people talk about the “Bitcoin bubble”, but Bitcoin is only up about 600 percent over the last 12 months. Dogecoin is up about 18,000 percent over the past year even though there is no restriction on how many Dogecoins can eventually be created. There is absolutely no reason why any rational investor should be putting a single red cent into Dogecoin, and yet it just keeps going up. In fact, at one point this week Dogecoin had a total market value “of almost $42 billion”…

Initially started as a joke in 2013, dogecoin is now the sixth-largest digital coin with a total market value of almost $42 billion, according to CoinGecko. It takes its name and branding from the “Doge” meme, which depicts a Shiba Inu dog alongside nonsensical phrases in multicolored text.

It is hard for me to believe that “investors” are being so incredibly stupid.

Dogecoin’s price soared 20% in 24 hours after Elon Musk and Mark Cuban both made tweets supporting the meme-inspired cryptocurrency. Its price rose by a whopping 400% in seven days.
So what? Dogecoin is different from Bitcoin in a very specific way.

unlike Bitcoin, Dogecoin miners can keep creating more tokens forever and ever…

Originally, Dogecoin had a hard limit of 100 billion tokens, similar to Bitcoin’s cap of 21 million tokens. However, the developers changed their plans in 2014, eliminating the supply constraints. In other words, as long as miners continue to build the blockchain, more Dogecoin will continue to wink into existence.
In fact, each time a block is verified, the miner receives a fixed reward of 10,000 Dogecoin tokens. Unless the code is rewritten, this will go on forever.
That’s a critical flaw.

“A critical flaw”?
That is quite an understatement.

Cryptocurrencies have nothing backing them, and therefore have no store of value.
But at least Bitcoin has a limited number. Dogecoin doesn't even have limits.
Which makes Dogecoin $42 Billion of Dutch Tulips.

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Comments

smiley7's picture

Elon, the same man who throws workers under the bus, mentioned Dodge on SNL and an immediate %20 increase.

Same old card game i learned in youth, played again with fancy frills; beware dodgy coins, unless dangerously speculating to win short term having two aces in the hole.

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mimi's picture

it seems. Thanks for explaining. Great effort to educate us. I rather invest in peanuts and coffee beans, planting them in my garden. I like to touch my coins to be sure they are real.
Smile
Have good Sunday and don't spill the beans coins.

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The Liberal Moonbat's picture

To think we thought the '90s "collectible"-mania was bad...at least they had something to do with physically-real objects.

GOTTA CATCH 'EM ALL!GOTTA CATCH 'EM ALL!GOTTA CATCH 'EM ALL!!!

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We live in a society in which "we live in a society" is now considered a subversive and vaguely-threatening statement.

In the Land of the Blind, the one-eyed man is declared insane when he speaks of colors.

Lookout's picture

Bitcoin proponents Max and Stacy suggest the USD drives war and bitcoin could create peace.

They look at the rise of populism as the result of the built-in problem with a fiat reserve currency and how a bitcoin standard could reduce the volatility and inherent violence of a capricious fiat regime.

Corporate interests are now in the bitcoin investment game. The fact that it requires the internet seem its weakness to my mind because TPTB could possibly choke the exchange.

My point here is the USD isn't backed by anything either.

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“Until justice rolls down like water and righteousness like a mighty stream.”

@Lookout
is backed by the full might and power of the US military, you know, like a protection racket.

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Lookout's picture

@JtC

bringing you wars and coups created by our very own mafia branch of government. Sure is great to be great isn't it?

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“Until justice rolls down like water and righteousness like a mighty stream.”

@Lookout
Max Keiser has become a grifter.

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Lookout's picture

@gjohnsit

...and no doubt he pushes bitcoin, but a grifter?
SOD General Raytheon, now that's a grifter...4 min

I remember you dissing bitcoin back when it was 2K. Do you wish you had bought then?

I mean you're entitled to your opinion, and I have no horse in the race...no longer have my three bitcoins, but I wish I was still holding them.

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“Until justice rolls down like water and righteousness like a mighty stream.”

@Lookout
All that is necessary to be a grifter is to lie. Max is lying.

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freedictionary: History

Early uses of the phrase refer to it as a catch-phrase among gamblers. In an 1879 discussion of gambling in Chicago, an "old-timer" is quoted as saying, "[G]oodness knows how they live, it’s mighty hard times with the most of them; in the season they make a bit on base ball, or on the races, and then, you know, 'there’s a sucker born every minute', and rigid city legislation drives the hard-up gambler, who would be a decent one of the kind, to turn skin-dealer and sure-thing player."[4] The use of quotation marks indicates that it must already have been an established catch-phrase.

The phrase appears in print in the 1885 biography of confidence man Hungry Joe, The Life of Hungry Joe, King of the Bunco Men.[5][6]

In a slightly different form, the phrase shows up in the January 1806 European Magazine: "It was the observation of one of the tribe of Levi, to whom some person had expressed his astonishment at his being able to sell his damaged and worthless commodities, 'That there vash von fool born every minute.'"[7]

According to David W. Maurer, writing in The Big Con (1940),[8] there was a similar saying amongst con men: "There's a mark born every minute, and one to trim 'em and one to knock 'em." Here "trim" means to steal from, and "knock" means to persuade away from a scam. The meaning is that there is no shortage of new victims, nor of con men, nor of honest men.

In the 1930 John Dos Passos novel The 42nd Parallel, the quotation is attributed to Mark Twain.

That saying rang inside my head for two minutes during,

Elon Musk's Flame Thrower Moment - JRE Toons

712,302 views Feb 8, 2021

But what kind of person would buy a flamethrower? For $500? never mind

Good luck!

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@eyo

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They say that there's a broken light for every heart on Broadway
They say that life's a game and then they take the board away
They give you masks and costumes and an outline of the story
And leave you all to improvise their vicious cabaret-- A. Moore

TheOtherMaven's picture

@Johnny Q

that people started believing he coined the phrase.

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There is no justice. There can be no peace.