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So, if I weren't sure that cryptocurrency was in a bubble before, I think it's safe to say that when DogeCoin pops a $2B market cap something big is happening.

So, if I weren't sure that cryptocurrency was in a bubble before, I think it's safe to say that when DogeCoin pops a $2B market cap something big is happening. And that big thing is probably not good.

lmm 9y ago
Dogecoin isn't really a parody, not in the way that e.g. Useless Ether Token is a parody. It's a relatively lighthearted, fun cryptocurrency, but it's at least as legitimate as e.g. Litecoin, and the only way to see it as less legitimate than Bitcoin is if you see something magical about the fact that Bitcoin was first.
- IkmoIkmo 9y ago
  True, if anything it was probably the second most lively crypto community effort I've seen to date. Bitcoin was a community for everyone, and the biggest. Litecoin was just about price. Ether and Ripple were just about price and a few devs talking about tech. Doge was about community, it was really unique in that way and a lot of fun. Relatively few really cared about its price in any serious way and everyone just wanted this thing to blow up for the fun of it. Anyway... more importantly, there's absolutely no way anyone is able to cash out anywhere close to $2b in dogecoin haha. I think what people don't fully get is that these small coins had 0.1% the market cap of bitcoin over the past few months, and it had just <$100k volume per day worldwide for most of last year. (about half of a single walmart's daily sales). That means it's pretty easy to manipulate. You just set-up a simultaneous buy and sell order with two accounts on an exchange, buying doge for bitcoin at 10x the price. Of course, you're selling to yourself, so you don't lose anything in this process. But you are momentarily creating a price momentum that others may pick up on. Throw some posts in trading forums for all the new people who don't understand anything and just talk about price movements to get-rich-quick, and you've got people jumping on the bandwagon. It's a typical pump & dump and it's the only reason we suddenly talk about ICOs and other coins, because when bitcoin moves up quickly like it has, it's an easy time to exploit all the other coins that have tiny volume / price, but lots of potential eyeballs if you make the price move.
- mywittyname 9y ago
  So you're saying we should wait and see how CosbyCoins do before calling this a bubble?
  - lmm 9y ago
    Dogecoin reaching a certain market cap shouldn't move the needle on that view one way or another, IMO. (Personally I believe most cryptocurrencies represent a bubble, doubly so for Ether tokens. Not Doge though, that's going to the moon)
vinchuco 9y ago
it could just be arbitrage in the USD BTC DOGE triangle
- paulgb 9y ago
  How would arbitrage push DOGE up if the demand wasn't there in the first place?
  - deleted 9y ago
    [deleted]
gressquel 9y ago
bitcoin bubble burst has just begun. Look at the charts. People are in denial phase. All the alts are following BTC
- mythrwy 9y ago
  You might be right but it's worth pointing out a correction is not a bubble burst.

lmm 9y ago

Dogecoin isn't really a parody, not in the way that e.g. Useless Ether Token is a parody. It's a relatively lighthearted, fun cryptocurrency, but it's at least as legitimate as e.g. Litecoin, and the only way to see it as less legitimate than Bitcoin is if you see something magical about the fact that Bitcoin was first.

IkmoIkmo 9y ago
True, if anything it was probably the second most lively crypto community effort I've seen to date. Bitcoin was a community for everyone, and the biggest. Litecoin was just about price. Ether and Ripple were just about price and a few devs talking about tech. Doge was about community, it was really unique in that way and a lot of fun. Relatively few really cared about its price in any serious way and everyone just wanted this thing to blow up for the fun of it. Anyway... more importantly, there's absolutely no way anyone is able to cash out anywhere close to $2b in dogecoin haha. I think what people don't fully get is that these small coins had 0.1% the market cap of bitcoin over the past few months, and it had just <$100k volume per day worldwide for most of last year. (about half of a single walmart's daily sales). That means it's pretty easy to manipulate. You just set-up a simultaneous buy and sell order with two accounts on an exchange, buying doge for bitcoin at 10x the price. Of course, you're selling to yourself, so you don't lose anything in this process. But you are momentarily creating a price momentum that others may pick up on. Throw some posts in trading forums for all the new people who don't understand anything and just talk about price movements to get-rich-quick, and you've got people jumping on the bandwagon. It's a typical pump & dump and it's the only reason we suddenly talk about ICOs and other coins, because when bitcoin moves up quickly like it has, it's an easy time to exploit all the other coins that have tiny volume / price, but lots of potential eyeballs if you make the price move.
mywittyname 9y ago
So you're saying we should wait and see how CosbyCoins do before calling this a bubble?
- lmm 9y ago
  Dogecoin reaching a certain market cap shouldn't move the needle on that view one way or another, IMO. (Personally I believe most cryptocurrencies represent a bubble, doubly so for Ether tokens. Not Doge though, that's going to the moon)

vinchuco 9y ago

it could just be arbitrage in the USD BTC DOGE triangle

paulgb 9y ago
How would arbitrage push DOGE up if the demand wasn't there in the first place?
- deleted 9y ago
  [deleted]

gressquel 9y ago

bitcoin bubble burst has just begun. Look at the charts. People are in denial phase. All the alts are following BTC

mythrwy 9y ago
You might be right but it's worth pointing out a correction is not a bubble burst.