Dogecoin was created as a joke, with no practical use case. Still, its market cap peaked at over $88 billion, which is roughly the recent market cap of multinational computer maker Dell Technologies.
What is really going on here?
Doug Casey: I understand that there are about 40,000 cryptocurrencies out there. The crypto market has turned into a mania spawned by the success of Bitcoin, which has a very real use.
But as Nick Giambruno has pointed out, most of these things serve absolutely no useful purpose. People think they’re investing in them. They’re not even speculating in them. They’re gambling with them but don’t know it. Most cryptos have less value than Chuck E. Cheese tokens or airline frequent flyer miles. They have absolutely no value or use. To reference the old joke, they’re “trading sardines,” not “eating sardines.” They amount to play money, like that in a game of Monopoly.
But because Dogecoin (I like to call it “doggy coin”) was mentioned and mildly promoted by a couple of celebrities, it somehow captured the imagination of gamblers and wannabe masters of the universe and got traction. People started buying and selling it for no reason other than the fact everyone else was doing it. Dogecoin became a financial meme.
Let me make a prediction. I don’t know if it’s going to be a week from now or a year from now, but the $88 billion in Dogecoin will disappear. It’s going to zero because that’s what it’s worth. The same will happen to 99.9% of other cryptos. Let me hasten to add that Bitcoin has real value as a money, however.
Stories will be told about Dogecoin, much like those about the tulip mania of the 1630s in Holland.
~ Doug Casey, "Meme Stock Mania and Impending Financial Disaster," International Man, May 30, 2024
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