Hey everyone!
Obviously had to do a quick note on Dogecoin, which I’m sure you’ve heard of by now, haha!
I’ve gotten a ton of texts and emails from people that I told to buy Bitcoin 12 months ago, who never did, who now bought some Doge…
It’s hilarious, but I’m trying to see it objectively.
First, what the heck is Dogecoin?
It’s literally a joke coin. The founders created it as a joke.
However, it is increasing in value MUCH more rapidly than a joke deserves!
It is now worth over 50 BILLION DOLLARS…
I know, it’s insane.
This has been aided by MEME CULTURE, particularly Elon Musk, who loves memeing Dogecoin to the stratosphere.
If you haven’t seen the memes just search Dogecoin on twitter, you’ll get the idea.
So, the 50 billion dollar question, is it a good investment?
Well, if you would have put $1,000 in it in January you’d be able to afford a fully loaded Tesla Model S right now…. so by that definition, YES! haha!
However, it’s hard to say that a coin that was literally created as a joke is a good investment, so I’d rather phrase the question like this…
What does it MEAN that Doge has made (some) people filthy rich?
1) The memes are the message. The legacy media doesn’t understand social media, which is why they are basically extinct and headed closer down that path every single day.
Influencers with audiences control the narrative, and can motivate millions of people to do just about anything, including investing in Dogecoin.
2) The currency is the real joke.
If the US dollar and other world currencies actually held their value, do you think that Dogecoin would be doing what it’s doing?
Of course not.
People are motivated to gamble on things like Dogecoin because of the situations they are in.
Incentives drive behavior.
Right now, it is downright stupid to keep cash in the bank, and everyone knows it.
All the “traditional” investments are saturated and overpriced.
Stock market is at all time highs.
So people are forced into alternative investments in order to try to get a return on their ever more worthless dollars.
3) Nothing is impossible anymore. It seems impossible, ludicrous, even that 9 year old tic tockers are buying their parents Lamborghini’s from their Dogecoin earnings….
Yet, it’s happening.
I actually LOVE this about Doge.
It makes it so BLATANTLY OBVIOUS that the system is broken.
Working 9-5 to make 50k and barely get by?
Or put $50 in a meme coin 6 months ago and sit on your butt an eat cheetos?
Same. Exact. Result.
If people didn’t understand that money does NOT have to be earned through traditional means before COVID and the rise of Crypto… they sure do now….
I expect this to lead to a surge in Entrepreneurship unlike anything the World has EVER seen before…
Starting a business seems infinitely less risky compared with investing in a Dog Meme coin that could crash 99% overnight and has multiple times throughout history…..
So, would I invest in Doge?
Honestly, I don’t have any.
I thought about yoling a few grand on it just to see what would happen…
But I sleep much better with my money in Bitcoin.
Something that actually has fundamental value to society.
And a clear use case towards massive price increases.
Now, I’m NOT saying Doge won’t keep going up, because it sure as heck could.
Overall, I think understanding that Doge is just a symptom of a broken monetary system that is evolving extremely quickly due to technology is the right way to view it.
From an investment perspective, we need to learn from Doge, not just mock it.
That “learning” has simply strengthened my conviction in Bitcoin, and I will continue to keep you subscribers updated on that thesis as we go through the rest of this bull run this year.
Kale
What's the deal with Dogecoin?