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I'm mostly being facetious, but the cynic in me does wonder about the timing of the current slump. And yeah, Musk tweeting that Twitter will accept Dogecoin is
by imron 4y ago
I'm mostly being facetious, but the cynic in me does wonder about the timing of the current slump.
And yeah, Musk tweeting that Twitter will accept Dogecoin isn't going to prop up the market in its current falling state, but once the market depresses somewhat and then stabilizes, Musk announcing support for Twitter+crypto would be enough to start pumping up the market again.
- thawaya3113 4y agoand this is why cryptocurrencies as marketed today are a scam. Sure, Twitter will “accept” Dogecoin. But the only reason people have Dogecoin is because they expect its value to rise, and rise dramatically. So why would anyone pay for whatever they’re paying in Dogecoin, when they expect the value of Dogecoin to increase in the future? So, for example, if I’m trying to make a transaction for $10. And let’s say the dollar loses 10% value due to inflation in a year, while Dogecoin increases by 20% in a year. If I pay for the transaction in USD, a year later in 2023, that $10 USD would be worth $9 in 2022 USD. If I pay for it in Dogecoin, however, the $10 worth of Dogecoin would a year later have been worth about $10.80 in 2022 USD. If you think the value of crypto is going up then it makes absolutely no sense to use crypto for transactions.
- emteycz 4y agoWhy would they not pay? Perhaps they don't care about the .8 USD they'll lose the opportunity to gain?
- zydex 4y agoA Twitter announcement for Crypto support would absolutely not be enough to pump the market. The wider sell off in crypto is due to a sell off in all markets due to a number of factors such as increasing rates. This is not some minor slump that will end with a Musk tweet.