3 ms·

Dogecoin Is Up Because It’s Funny

25 points by kgwgk 6y ago

kgwgk 6y ago
"Just imagine traveling 10 years back in time and trying to explain this to someone; just imagine what an idiot you’d feel like. “There’s going to be this online currency that people think is a form of digital gold, and then there’s going to be a different online currency that is a parody of the first one based on a meme about a talking Shiba Inu, and that one will have a market capitalization bigger than 80% of the companies in the S&P 500, and its value will fluctuate based on things like who is hosting ‘Saturday Night Live’ and whether people tweet a hashtag about it on the pot-joke holiday, and Bloomberg will write articles and banks will write research notes about those sorts of catalysts, and it will remain a perfectly ridiculous content-free parody even as people properly take it completely seriously because there are billions of dollars at stake.”
- Medox 6y ago
  While the bigger irony is that it's a dog! 10 years ago people would have bet on a cat. Maybe it's time to create the CatDogecoin... (remember CatDog?)
BelenusMordred 6y ago
Presented without comment: https://tradingeconomics.com/united-states/money-supply-m1 https://tradingeconomics.com/united-states/money-supply-m1
- eindiran 6y ago
  I am kind of confused by those graphs: how did M1 rise so much but M2 stay approximately the same over the last year? M2 rose by 3T, and M1 rose by 13T(!).
  - gowld 6y ago
    Fed says it's mainly a paperwork thing, with M2 savings accounts and CD accounts being reclassified as M1 checking accounts. But they say they can't think of a reason why it's happening, which is kind of scary. They also say that since insterest rates are 0, there's no reason for depositors to prefer M3 over M1. https://fredblog.stlouisfed.org/2021/01/whats-behind-the-recent-surge-in-the-m1-money-supply https://fredblog.stlouisfed.org/2021/01/whats-behind-the-rec...
    - eindiran 6y ago
      That's very helpful, thank you.
- devwastaken 6y ago
  Is this bad? How is that calculated?
meowster 6y ago
My coworkers are talking about how many "shares" of Dogecoin they bought based off the advice they're giving one another. Something something... shoe shine boy. Today one talked about buying "BitTorrent" and that it will go up to $x because there's a petition to have it listed on RobinHood, so it will be "soon". I've liquidated most of my cryptocurrency holdings. I believed in some of the projects years ago, but now the space seems too 'WTF' for me.
- rmwaite 6y ago
  The future is now old man. But on a serious note - this is a common experience with new technologies. I personally believe the arbitrariness is a consequence of some people just “getting” the potential of the technology. The Internet was originally used for a lot of silly things too until it wasn’t so silly anymore. I suspect cryptocurrencies will be the same.
bingbong70 6y ago
Doge has 129 billion coins in circulation with an expectation of having over 1.2 trillion coins in circulation (there is no max supply), it is 'funny' because it is an example of extremely bad money when we compare it to actual hard money like bitcoin (18M circ, 21M cap).

25 points by kgwgk 6y ago

"Just imagine traveling 10 years back in time and trying to explain this to someone; just imagine what an idiot you’d feel like. “There’s going to be this online currency that people think is a form of digital gold, and then there’s going to be a different online currency that is a parody of the first one based on a meme about a talking Shiba Inu, and that one will have a market capitalization bigger than 80% of the companies in the S&P 500, and its value will fluctuate based on things like who is hosting ‘Saturday Night Live’ and whether people tweet a hashtag about it on the pot-joke holiday, and Bloomberg will write articles and banks will write research notes about those sorts of catalysts, and it will remain a perfectly ridiculous content-free parody even as people properly take it completely seriously because there are billions of dollars at stake.”

Medox 6y ago
While the bigger irony is that it's a dog! 10 years ago people would have bet on a cat. Maybe it's time to create the CatDogecoin... (remember CatDog?)

BelenusMordred 6y ago

Presented without comment: https://tradingeconomics.com/united-states/money-supply-m1 https://tradingeconomics.com/united-states/money-supply-m1

eindiran 6y ago
I am kind of confused by those graphs: how did M1 rise so much but M2 stay approximately the same over the last year? M2 rose by 3T, and M1 rose by 13T(!).
- gowld 6y ago
  Fed says it's mainly a paperwork thing, with M2 savings accounts and CD accounts being reclassified as M1 checking accounts. But they say they can't think of a reason why it's happening, which is kind of scary. They also say that since insterest rates are 0, there's no reason for depositors to prefer M3 over M1. https://fredblog.stlouisfed.org/2021/01/whats-behind-the-recent-surge-in-the-m1-money-supply https://fredblog.stlouisfed.org/2021/01/whats-behind-the-rec...
  - eindiran 6y ago
    That's very helpful, thank you.
devwastaken 6y ago
Is this bad? How is that calculated?

meowster 6y ago

My coworkers are talking about how many "shares" of Dogecoin they bought based off the advice they're giving one another. Something something... shoe shine boy. Today one talked about buying "BitTorrent" and that it will go up to $x because there's a petition to have it listed on RobinHood, so it will be "soon". I've liquidated most of my cryptocurrency holdings. I believed in some of the projects years ago, but now the space seems too 'WTF' for me.

rmwaite 6y ago
The future is now old man. But on a serious note - this is a common experience with new technologies. I personally believe the arbitrariness is a consequence of some people just “getting” the potential of the technology. The Internet was originally used for a lot of silly things too until it wasn’t so silly anymore. I suspect cryptocurrencies will be the same.

bingbong70 6y ago

Doge has 129 billion coins in circulation with an expectation of having over 1.2 trillion coins in circulation (there is no max supply), it is 'funny' because it is an example of extremely bad money when we compare it to actual hard money like bitcoin (18M circ, 21M cap).