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DOGE is a pretty good currency to use for moving money between exchanges. That is why its used. If BTC had low/no transaction fees and was fast, people would ha

DOGE is a pretty good currency to use for moving money between exchanges. That is why its used. If BTC had low/no transaction fees and was fast, people would have less incentive to use DOGE. Overvalued? Its possible but I think the entire crypto market is actually insanely undervalued. I was talking to my financial advisor the other day and he said pretty much 100% of people now are asking him about crypto and are considering putting money in. This seems like it is just the start. The figure for the .com crash was around a 7 trillion dollar market cap. Crypto is 0.7 trillion today and its more of an international market then the .com days. Easily cypto could 10x in size over the next year or two. In the end its super high risk speculation. You can figure the entire market is overvalued but there is no doubt that there is money to be made in several sub-sectors of the crypto market.

sremani 9y ago
Minting new coin is not difficult, there is CrptoNote project on Github you can fork and in matter of minutes you can have your own "Coin" and start mining on couple of old Linux boxes. I understand the network and traction, but this is not very different from each bank having its own currency notes back in the day (1800s?). The biggest problem is they are not stable enough to be currencies their volatility makes them more like commodity/asset and their Transaction speed does not make them huge transaction payment systems. They fail at both promises when they gain traction, of course, there will be ultimate winners in this space. Instead of calling them Cryptocurrencies, calling them DLT (distributed ledger tech) is more appropriate for most the coins anyway.
- lmm 9y ago
  I'd trust Doge more than most cryptocurrencies, honestly. It's relatively established, the community doesn't or at least didn't take itself too seriously (sounds like that may now have changed), and it took the (admittedly mostly symbolic) decision to allow "mining" to continue indefinitely, ensuring there will always be a Doge supply rather than passing all gains to the early adopters. In a sense it's a lot more functional than Bitcoin - people use it for "microtransactions" and "tipping" that would be impossible with Bitcoin's transaction fees.
  - ericb 9y ago
    It hasn't had an update in two years. What about when a vulnerability is discovered?
    - HuggableSquare 9y ago
      Although there hasn't been a release in two years they're currently working on releasing 1.14 this year. In case you're interested the core devs have been doing a pretty good job on keeping people informed on the status of the release on the subreddit. Latest post here: https://www.reddit.com/r/dogecoin/comments/7oxi53/developer_brain_dump_incoming/ https://www.reddit.com/r/dogecoin/comments/7oxi53/developer_...
  - Cyberdog 9y ago
    > It's relatively established, the community doesn't or at least didn't take itself too seriously (sounds like that may now have changed) It changed a bit, but not entirely. Check out the subreddit and you'll still see lots of Comic Sans and image macros. I have Dogecoin to thank (blame?) for getting me initially interested in cryptocurrency precisely because the community was so welcoming and didn't take itself so damned seriously, and even though Dogecoin is more "valuable" now, I'd still recommend it for those looking for a low-risk and relatively simple introduction to the concept.
jedberg 9y ago
If you're invested I wish you the best. But here is why I think all cryptocurrency is worthless: It is backed by nothing. The USD is backed by the courts of the USA, which in turned are backed by people with guns (law enforcement and the military). The YEN is backed by guns. The GPB is backed by guns. What is BTC backed by? If someone literally steals your BTC, what recourse do you have? There is no court to go to, no one to back it up. Even the most hard core Libertarians acknowledge the need of a court system and force to back up contract law. So I will never invest in cryptocurrency because of that. Maybe I'll be wrong and miss out, but that's a risk I'm willing to take. Distributed ledger is a good thing, but it isn't a store of value in and of itself.
- zodiac 9y ago
  What precisely do you mean by "The USD is backed by the courts of the USA"? Do you literally mean "if someone takes my USD by force I can sue them"?
  - jedberg 9y ago
    Exactly. There are laws and rules about moving USD from one person to another, and if someone violates those rules, you have recourse in the courts. And if they don't follow the court order, someone with guns will come and force them to follow it.
    - zodiac 9y ago
      If that's your definition, I could say that my Bitcoin is backed by mathematics and proof of work because "violating" the rules (by taking my coins without my consent) requires either guessing my secret key or mounting a 51% attack on the whole network
      - jedberg 9y ago
        Don't be silly. We've already seen multiple examples of stolen coins with no recourse -- exchanges taking the money and going bankrupt, people issuing new coins and then just taking the money, etc. And I don't have to guess your secret key -- I just have to steal your computer. Even if I get caught stealing your computer and have to give it back, if I've already compromised your wallet and moved the coins, there is nothing you can do to get them back.
Permit 9y ago
>Overvalued? Its possible but I think the entire crypto market is actually insanely undervalued. I was talking to my financial advisor the other day and he said pretty much 100% of people now are asking him about crypto and are considering putting money in. This seems like it is just the start. Ask him how many of those same people consider using it as a currency. I suspect they will remain interested in it so long as they hear about incredible gains and Bitcoin millionaires. I suspect that when the hype dies off (say if cryptocurrency prices were to stabilize) they would not be holders of any cryptocurrency the same way they are not holders of Yen, Euros, CAD, USD etc. for the purpose of investment.
usrusr 9y ago
> I was talking to my financial advisor the other day and he said pretty much 100% of people now are asking him about crypto and are considering putting money in. 100% of those are not interested in cryptocurrency at all, they are interested in anything that goes from bottom left to top right if charted against their local denomination. They don't want crypto, they want fiat and see crypto merely as a possible means to that end. This translates precisely to "Crypto is only backed by greed", which is exactly what people mean when they call it overvalued. (I call 100% and not 99%, because those few genuinely interested in crypto would not bother asking their financial advisor)
- derimagia 9y ago
  Honestly though, doesn't this also apply to a lot of people's choice of stocks?
  - yathern 9y ago
    Absolutely - many of which can be, and often are, overvalued.
  - overcast 9y ago
    Sure, except Bitcoin wasn't created to be a stock. That's the point here. It's basically just imaginary stock in an imaginary company now.
  - CPLX 9y ago
    Stocks are an investment in productive assets. Somewhere down the chain stocks invest in actual production value, which creates goods or services that people use, and increases the sum total of wealth in the world. Buying the stock is buying the rights to a stream of income based on that productivity. These "investments" in cryptocurrency don't have that aspect whatsoever. There is no claim on productive enterprise involved, and for the more niche offerings that have some element of that the economics are so wildly divorced from the fundamentals of productivity to make the link meaningless.
    - 9y ago
georgeecollins 9y ago
It is very faulty logic to say that because .coms got to 7 trillion market cap (and as an aside, isn't that whole exchanges, not just technology stocks?) we should expect crypto currencies to go much higher than 0.7 trillion valuation. The analogy between the two things makes sense in that they were both popular investments, but otherwise are different in many ways.
- tehlike 9y ago
  The difference between two bubbles was the float involved in them, and liquidity. Currently a big portion of the market cap is due to "to have 1b dollar market cap, pay 1$ for 1^-10 of the company" phenomenon.

sremani 9y ago

Minting new coin is not difficult, there is CrptoNote project on Github you can fork and in matter of minutes you can have your own "Coin" and start mining on couple of old Linux boxes. I understand the network and traction, but this is not very different from each bank having its own currency notes back in the day (1800s?). The biggest problem is they are not stable enough to be currencies their volatility makes them more like commodity/asset and their Transaction speed does not make them huge transaction payment systems. They fail at both promises when they gain traction, of course, there will be ultimate winners in this space. Instead of calling them Cryptocurrencies, calling them DLT (distributed ledger tech) is more appropriate for most the coins anyway.

lmm 9y ago
I'd trust Doge more than most cryptocurrencies, honestly. It's relatively established, the community doesn't or at least didn't take itself too seriously (sounds like that may now have changed), and it took the (admittedly mostly symbolic) decision to allow "mining" to continue indefinitely, ensuring there will always be a Doge supply rather than passing all gains to the early adopters. In a sense it's a lot more functional than Bitcoin - people use it for "microtransactions" and "tipping" that would be impossible with Bitcoin's transaction fees.
- ericb 9y ago
  It hasn't had an update in two years. What about when a vulnerability is discovered?
  - HuggableSquare 9y ago
    Although there hasn't been a release in two years they're currently working on releasing 1.14 this year. In case you're interested the core devs have been doing a pretty good job on keeping people informed on the status of the release on the subreddit. Latest post here: https://www.reddit.com/r/dogecoin/comments/7oxi53/developer_brain_dump_incoming/ https://www.reddit.com/r/dogecoin/comments/7oxi53/developer_...
- Cyberdog 9y ago
  > It's relatively established, the community doesn't or at least didn't take itself too seriously (sounds like that may now have changed) It changed a bit, but not entirely. Check out the subreddit and you'll still see lots of Comic Sans and image macros. I have Dogecoin to thank (blame?) for getting me initially interested in cryptocurrency precisely because the community was so welcoming and didn't take itself so damned seriously, and even though Dogecoin is more "valuable" now, I'd still recommend it for those looking for a low-risk and relatively simple introduction to the concept.

jedberg 9y ago

If you're invested I wish you the best. But here is why I think all cryptocurrency is worthless: It is backed by nothing. The USD is backed by the courts of the USA, which in turned are backed by people with guns (law enforcement and the military). The YEN is backed by guns. The GPB is backed by guns. What is BTC backed by? If someone literally steals your BTC, what recourse do you have? There is no court to go to, no one to back it up. Even the most hard core Libertarians acknowledge the need of a court system and force to back up contract law. So I will never invest in cryptocurrency because of that. Maybe I'll be wrong and miss out, but that's a risk I'm willing to take. Distributed ledger is a good thing, but it isn't a store of value in and of itself.

zodiac 9y ago
What precisely do you mean by "The USD is backed by the courts of the USA"? Do you literally mean "if someone takes my USD by force I can sue them"?
- jedberg 9y ago
  Exactly. There are laws and rules about moving USD from one person to another, and if someone violates those rules, you have recourse in the courts. And if they don't follow the court order, someone with guns will come and force them to follow it.
  - zodiac 9y ago
    If that's your definition, I could say that my Bitcoin is backed by mathematics and proof of work because "violating" the rules (by taking my coins without my consent) requires either guessing my secret key or mounting a 51% attack on the whole network
    - jedberg 9y ago
      Don't be silly. We've already seen multiple examples of stolen coins with no recourse -- exchanges taking the money and going bankrupt, people issuing new coins and then just taking the money, etc. And I don't have to guess your secret key -- I just have to steal your computer. Even if I get caught stealing your computer and have to give it back, if I've already compromised your wallet and moved the coins, there is nothing you can do to get them back.

Permit 9y ago

>Overvalued? Its possible but I think the entire crypto market is actually insanely undervalued. I was talking to my financial advisor the other day and he said pretty much 100% of people now are asking him about crypto and are considering putting money in. This seems like it is just the start. Ask him how many of those same people consider using it as a currency. I suspect they will remain interested in it so long as they hear about incredible gains and Bitcoin millionaires. I suspect that when the hype dies off (say if cryptocurrency prices were to stabilize) they would not be holders of any cryptocurrency the same way they are not holders of Yen, Euros, CAD, USD etc. for the purpose of investment.

usrusr 9y ago

> I was talking to my financial advisor the other day and he said pretty much 100% of people now are asking him about crypto and are considering putting money in. 100% of those are not interested in cryptocurrency at all, they are interested in anything that goes from bottom left to top right if charted against their local denomination. They don't want crypto, they want fiat and see crypto merely as a possible means to that end. This translates precisely to "Crypto is only backed by greed", which is exactly what people mean when they call it overvalued. (I call 100% and not 99%, because those few genuinely interested in crypto would not bother asking their financial advisor)

derimagia 9y ago
Honestly though, doesn't this also apply to a lot of people's choice of stocks?
- yathern 9y ago
  Absolutely - many of which can be, and often are, overvalued.
- overcast 9y ago
  Sure, except Bitcoin wasn't created to be a stock. That's the point here. It's basically just imaginary stock in an imaginary company now.
- CPLX 9y ago
  Stocks are an investment in productive assets. Somewhere down the chain stocks invest in actual production value, which creates goods or services that people use, and increases the sum total of wealth in the world. Buying the stock is buying the rights to a stream of income based on that productivity. These "investments" in cryptocurrency don't have that aspect whatsoever. There is no claim on productive enterprise involved, and for the more niche offerings that have some element of that the economics are so wildly divorced from the fundamentals of productivity to make the link meaningless.
  - 9y ago

georgeecollins 9y ago

It is very faulty logic to say that because .coms got to 7 trillion market cap (and as an aside, isn't that whole exchanges, not just technology stocks?) we should expect crypto currencies to go much higher than 0.7 trillion valuation. The analogy between the two things makes sense in that they were both popular investments, but otherwise are different in many ways.

tehlike 9y ago
The difference between two bubbles was the float involved in them, and liquidity. Currently a big portion of the market cap is due to "to have 1b dollar market cap, pay 1$ for 1^-10 of the company" phenomenon.