6 ms·

Dogecoin spikes 300% in a week, stoking fears of a cryptocurrency bubble

35 points by koolba 6y ago

donsupreme 6y ago
This can't be good for cryptocurrency as a whole right?
- dusted 6y ago
  could have wider implication, I find it interesting from a philosophical perspective though, what does it say about wealth
  - donsupreme 6y ago
    curious to hear what you think this says about wealth
    - dusted 6y ago
      One of the things I think it shows, is that there are some very wealthy people out there, who are able and willing to invest in this.. I also think it confirms that intrinsic value is less important than we think.
- prohobo 6y ago
  The entire crypto space is overblown in terms of market value. Most people buying it have no idea what it is, they just like green bars. But notice that it's happening on the normal stock market as well. A big crash would irrationally discredit the technology in popular culture for a few years, because critics will point at the morons (or are they just people who can smell the imminent collapse of our financial system?) buying random coins trying to get rich. That's a problem because now is a crucial time for "choosing sides" so to speak. If crypto gets disowned by popular culture then it might get bagged and thrown into a closet by proponents of centralization (states, corporations). Perception is important right now, but as long as it doesn't get snuffed out by politicians it'll keep evolving - and people will just buy in again after the crash. So I'd say this: it's bad if crypto is the only market that crashes.
  - matt-attack 6y ago
    Bitcoin has arguably had that crash (several actually) and has indeed survived and far stronger than ever.
  - koolba 6y ago
    > So I'd say this: it's bad if crypto is the only market that crashes. That’s a best case scenario. The cascading effect of any asset bubble popping extends outward like the ripples of a stone in a pond. Besides the unrelated draw downs to cover losses, it also has a psychological effect that pulls new money from entering non-risk free asset classes.
jmpman 6y ago
Why is Dogecoin any less viable than Bitcoin? Both look like tulips to me.
- manquer 6y ago
  They are, bitcoin is slightly less so because there is small amount of actual transactions happening .
  - postalrat 6y ago
    Isn't dogecoin technically superior? Better technology.
    - noman-land 6y ago
      In what way?
- noman-land 6y ago
  Doge was a joke coin made to mock the moonboys of bitcoin. It's not as valuable because tens of thousands of new coins come into existence every block. It was designed to be inflationary on purpose specially so that it would remain worthless. However. It's still a digital medium of exchange so it still retains some utility (even though most people don't care).
- bondarchuk 6y ago
  wow.. tulips.. original take, definitely haven't been reading that for over a decade.
- ffggvv 6y ago
  if someone sells an nft of an original digital work of art it’s absurd and dumb tulips. if someone sells an nft of their fart. it’s even more absurd and tulipy. both have happened.
deleted 6y ago
[deleted]
xtnmclain 6y ago
I don't think Dogecoin up 300% is healthy in this cryptocurrency market. The Doge was pumped based on Elon's tweet and purely hype. This pump may be suitable for those who profited from the currency, but generally, it is terrible for the market.
taurath 6y ago
In 10-15 years when this bubble bursts doctors will make a lot of money fixing the broken bones from the mob of people rushing to say they told you so. It seems ridiculous on its face and it doesn’t seem to be stopping. It feels like the entire financial/monetary system is on really shaky foundations when so much wealth is created out of something with no actual utility. We are way past the point of the shoe shine boy giving stock tips now. How much longer it goes seems like it will increase how hard the crash eventually is. But then again, I bought a helio ocean over the original iPhone so...
- saurik 6y ago
  Have you considered the possibility that the bubble which bursts is "fiat money", and the utility being provided by these "stores of value" currencies (such as Bitcoin) is merely "escape from inflation"? The story--also right now on Hacker News--of Turkey is extremely relevant: the expectation of governments is that they can arbitrarily inflate the currency supply, which is effectively a tax on holding that currency; the more people who realize they can avoid that tax by merely storing their money in a safe external asset, the harder it is for governments to use that mechanism to raise funds.
  - ReggieCommaRose 6y ago
    ...but it's Dogecoin.
    - 1996 6y ago
      ... which itself is extremely interesting if you leave aside its "dog" icon: it has the same UI as BTC, it is based on the same software, but with more digits (no need for satoshis as the smaller unit), lowest prices (people do not want to own fractional number of a coin like 1/100 of a BTC, they want integers), widely available on most exchange due to having existed for a long time... There is a strong usecase, at least as strong as LTC.
      - ReggieCommaRose 6y ago
creepto 6y ago
Tether goes BRRRRRR. In this week alone they've printed 4 Billion USDT (totally backed money). In one year they've printed 43 billion. Can't wait for the crash, hopefully the market doesn't stay irrational longer than I can stay solvent.
- m_mueller 6y ago
  When things are volatile but are on a strong upswing, I'd recommend buying in using DCA and keep adjusting stops at whatever level you're comfortable with (I use 90% for crypto atm.). You're right it's gonna burst - every free market does Eventually. But when does it burst? Will it burst before cash? Before stocks? Before gold? Before bonds? Who knows. So I just put 20-30% in each, put in stops, and sleep calmly through it.
- rasz 6y ago
  They scammed so much money they can buy any legislation, any prosecution, any audit several times over and continue for 10 more years. Look what happened to BCCI, one of the biggest banking scandals of the nineties.
Giorgi 6y ago
Yep, salty people who were late to the game will keep crying "bubble" for years to come.
- jfengel 6y ago
  Yep. It's no fun watching other people invent fake money and having it come true. I'll always be jealous that I could have been the one to invent JfengelBucks and somehow get people to accept them. But I basically view it like any other tech lottery. I knew Sergey Brin in high school and was on the math team with him. I coulda been that guy, but I wasn't. Lots of us were as smart and capable as Mark Zuckerberg, but we weren't Mark Zuckerberg. People who guessed that BTC would become the next hula hoop... good on ya. I hope you use your profits well and live a good life with 'em.
  - nly 6y ago
    There are a lot of crypto millionaires who are 100% invested in crypto, are not selling and are convinced they'll be billionaires. Honestly I don't know why, having reached FU wealth, you wouldn't sell and diversify in to every other asset class going. That's what i'd do.
    - swensel 6y ago
      Which asset classes would you diversify into? The stock market is at all time highs. Real estate is also at all time highs (depending on location, but in general). Precious metals are not on track to beat inflation. Treasury bonds are not on track to beat inflation. The rates even on high yield savings accounts also do not beat inflation (and are relatively very low). There is a concern that USD may be devaluing, due to all the money printing that has happened in 2020 and 2021. I agree diversification is good, and I don't think it's good to be 100% invested in crypto, but I'm just curious how you would allocate your portfolio if you were in that situation.
      - ketamine__ 6y ago
        Time in the market beats trying to time the market. https://youtu.be/nE7A-qb3QBI https://youtu.be/nE7A-qb3QBI
ab_testing 6y ago
With this surge is it possible to mine dogecoin on a normal desktop?
tim333 6y ago
I can't help but think of the Onion headline >Bitcoin Plunge Reveals Possible Vulnerabilities In Crazy Imaginary Internet Money https://www.theonion.com/bitcoin-plunge-reveals-possible-vulnerabilities-in-craz-1821134169 https://www.theonion.com/bitcoin-plunge-reveals-possible-vul... The whole thing's slightly nuts.

35 points by koolba 6y ago

donsupreme 6y ago

This can't be good for cryptocurrency as a whole right?

dusted 6y ago
could have wider implication, I find it interesting from a philosophical perspective though, what does it say about wealth
- donsupreme 6y ago
  curious to hear what you think this says about wealth
  - dusted 6y ago
    One of the things I think it shows, is that there are some very wealthy people out there, who are able and willing to invest in this.. I also think it confirms that intrinsic value is less important than we think.
prohobo 6y ago
The entire crypto space is overblown in terms of market value. Most people buying it have no idea what it is, they just like green bars. But notice that it's happening on the normal stock market as well. A big crash would irrationally discredit the technology in popular culture for a few years, because critics will point at the morons (or are they just people who can smell the imminent collapse of our financial system?) buying random coins trying to get rich. That's a problem because now is a crucial time for "choosing sides" so to speak. If crypto gets disowned by popular culture then it might get bagged and thrown into a closet by proponents of centralization (states, corporations). Perception is important right now, but as long as it doesn't get snuffed out by politicians it'll keep evolving - and people will just buy in again after the crash. So I'd say this: it's bad if crypto is the only market that crashes.
- matt-attack 6y ago
  Bitcoin has arguably had that crash (several actually) and has indeed survived and far stronger than ever.
- koolba 6y ago
  > So I'd say this: it's bad if crypto is the only market that crashes. That’s a best case scenario. The cascading effect of any asset bubble popping extends outward like the ripples of a stone in a pond. Besides the unrelated draw downs to cover losses, it also has a psychological effect that pulls new money from entering non-risk free asset classes.

jmpman 6y ago

Why is Dogecoin any less viable than Bitcoin? Both look like tulips to me.

manquer 6y ago
They are, bitcoin is slightly less so because there is small amount of actual transactions happening .
- postalrat 6y ago
  Isn't dogecoin technically superior? Better technology.
  - noman-land 6y ago
    In what way?
noman-land 6y ago
Doge was a joke coin made to mock the moonboys of bitcoin. It's not as valuable because tens of thousands of new coins come into existence every block. It was designed to be inflationary on purpose specially so that it would remain worthless. However. It's still a digital medium of exchange so it still retains some utility (even though most people don't care).
bondarchuk 6y ago
wow.. tulips.. original take, definitely haven't been reading that for over a decade.
ffggvv 6y ago
if someone sells an nft of an original digital work of art it’s absurd and dumb tulips. if someone sells an nft of their fart. it’s even more absurd and tulipy. both have happened.

deleted 6y ago

[deleted]

xtnmclain 6y ago

I don't think Dogecoin up 300% is healthy in this cryptocurrency market. The Doge was pumped based on Elon's tweet and purely hype. This pump may be suitable for those who profited from the currency, but generally, it is terrible for the market.

taurath 6y ago

In 10-15 years when this bubble bursts doctors will make a lot of money fixing the broken bones from the mob of people rushing to say they told you so. It seems ridiculous on its face and it doesn’t seem to be stopping. It feels like the entire financial/monetary system is on really shaky foundations when so much wealth is created out of something with no actual utility. We are way past the point of the shoe shine boy giving stock tips now. How much longer it goes seems like it will increase how hard the crash eventually is. But then again, I bought a helio ocean over the original iPhone so...

saurik 6y ago
Have you considered the possibility that the bubble which bursts is "fiat money", and the utility being provided by these "stores of value" currencies (such as Bitcoin) is merely "escape from inflation"? The story--also right now on Hacker News--of Turkey is extremely relevant: the expectation of governments is that they can arbitrarily inflate the currency supply, which is effectively a tax on holding that currency; the more people who realize they can avoid that tax by merely storing their money in a safe external asset, the harder it is for governments to use that mechanism to raise funds.
- ReggieCommaRose 6y ago
  ...but it's Dogecoin.
  - 1996 6y ago
    ... which itself is extremely interesting if you leave aside its "dog" icon: it has the same UI as BTC, it is based on the same software, but with more digits (no need for satoshis as the smaller unit), lowest prices (people do not want to own fractional number of a coin like 1/100 of a BTC, they want integers), widely available on most exchange due to having existed for a long time... There is a strong usecase, at least as strong as LTC.
    - ReggieCommaRose 6y ago

creepto 6y ago

Tether goes BRRRRRR. In this week alone they've printed 4 Billion USDT (totally backed money). In one year they've printed 43 billion. Can't wait for the crash, hopefully the market doesn't stay irrational longer than I can stay solvent.

m_mueller 6y ago
When things are volatile but are on a strong upswing, I'd recommend buying in using DCA and keep adjusting stops at whatever level you're comfortable with (I use 90% for crypto atm.). You're right it's gonna burst - every free market does Eventually. But when does it burst? Will it burst before cash? Before stocks? Before gold? Before bonds? Who knows. So I just put 20-30% in each, put in stops, and sleep calmly through it.
rasz 6y ago
They scammed so much money they can buy any legislation, any prosecution, any audit several times over and continue for 10 more years. Look what happened to BCCI, one of the biggest banking scandals of the nineties.

Giorgi 6y ago

Yep, salty people who were late to the game will keep crying "bubble" for years to come.

jfengel 6y ago
Yep. It's no fun watching other people invent fake money and having it come true. I'll always be jealous that I could have been the one to invent JfengelBucks and somehow get people to accept them. But I basically view it like any other tech lottery. I knew Sergey Brin in high school and was on the math team with him. I coulda been that guy, but I wasn't. Lots of us were as smart and capable as Mark Zuckerberg, but we weren't Mark Zuckerberg. People who guessed that BTC would become the next hula hoop... good on ya. I hope you use your profits well and live a good life with 'em.
- nly 6y ago
  There are a lot of crypto millionaires who are 100% invested in crypto, are not selling and are convinced they'll be billionaires. Honestly I don't know why, having reached FU wealth, you wouldn't sell and diversify in to every other asset class going. That's what i'd do.
  - swensel 6y ago
    Which asset classes would you diversify into? The stock market is at all time highs. Real estate is also at all time highs (depending on location, but in general). Precious metals are not on track to beat inflation. Treasury bonds are not on track to beat inflation. The rates even on high yield savings accounts also do not beat inflation (and are relatively very low). There is a concern that USD may be devaluing, due to all the money printing that has happened in 2020 and 2021. I agree diversification is good, and I don't think it's good to be 100% invested in crypto, but I'm just curious how you would allocate your portfolio if you were in that situation.
    - ketamine__ 6y ago
      Time in the market beats trying to time the market. https://youtu.be/nE7A-qb3QBI https://youtu.be/nE7A-qb3QBI

ab_testing 6y ago

With this surge is it possible to mine dogecoin on a normal desktop?

tim333 6y ago

I can't help but think of the Onion headline >Bitcoin Plunge Reveals Possible Vulnerabilities In Crazy Imaginary Internet Money https://www.theonion.com/bitcoin-plunge-reveals-possible-vulnerabilities-in-craz-1821134169 https://www.theonion.com/bitcoin-plunge-reveals-possible-vul... The whole thing's slightly nuts.