Dogecoin: Who Buys It, Why It Will Fail, and Why It Bothers Me

Woof. Okay. I’ve had enough. So I’ve decided to finally put this down into an original post.

I’m going to tell you (A) The people who buy Dogecoin, (B) Why it will fail, and (C) Why it bothers me.

(A) The people who buy Dogecoin

A1) The crypto n00b/amateur. These people were not involved in the last bull market, have no idea how many Dogecoins there are, don’t know how the Dogecoin network is “secured”, think BTC is too expensive, want to get rich quick and think they are getting in early. Most heard about it from a friend who put $100 in and made a few thousand. Some actually believe Doge is the new BTC (lol, ouch). They will ride Dogecoin down in the bear market and get REKT as fuck.

A2) The day trader. These people think they can consistently beat the base rate of simply HODLing BTC and paying capital gains taxes on each trade. Many probably cheat on taxes. Most don’t make much $. They don’t care about any of the technology although some may understand peripherally. They will attempt to buy low and 3-5x their profits and then GTFO. They will never ride their coins down all the way in a crash.

A3) The OG doge people. Many of these people probably have large stashes of non-joke coins like BTC, ETH, etc. A few of them have massive %s of all the Dogecoins in existence. They will slowly dump their bags on the above classes and put it into USD or BTC so they won’t lose their paper millions/billions in the inevitable crash.

(B) Why Dogecoin will “fail” and crash

B1) The network is incredibly vulnerable to attack and nowhere near a stable store of value because of it. The hash rate backing it is pathetically small and there is little to no development supporting it… See EDIT2 at end ????. Apparently it’s not vulnerable because it’s tied to Litecoin mining which is secure

B2) There is no development on this network. Fact. Conversely, there is immense amounts of development happening in other projects; development which solves real problems, enhances decentralization, secures billions of real dollars of value, etc

B3) It has gone up so fast, people have such huge paper gains that sooner or later they will cash them out

B4) There are 120 BILLION coins, and 14 million new ones per day. That’s about 4% inflation guaranteed for a decade or two. This type of inflation may be fine for fed coins and government fiat but why the fuck would anyone want it for a future store of value or currency? LOL much no thank you.

B5) Institutions will never buy this for reasons B1-4 above (and many more). You cannot sustain market caps in the hundreds of billions of dollars without institutions.

(C) Why it bothers me

C1) People who don’t know better will get rekt and turned off cRyPto. Then maybe they’d support fed coin when it comes out and might even support a ban on Bitcoin (should that ever become politically feasible). They’ll miss the true opportunity that is here and allow rich people and institutions to have more of the pie.

C2) Nobody crypto-competent would buy and hold Doge, yet people like the Winklevoss twins and other big exchanges are shilling doge coin listings to grab a slice of the trading fees. They are peddling trash they would never hold themselves to make a quick buck. Sound familiar? Just like today’s big banking system most everyone on here detests.

C3) It’s so lazy. It’s obviously not the next Bitcoin. Do a little research and you’ll know it’s a joke. It is a fork of a fork OF A FORK of Bitcoin. The real deal is sitting there in plain sight, but…

C4) Unit bias is so real, WOW. Bitcoin is perceived as too expensive. It’s really sad how human brains fall victim to this extremely well known and obviously-occurring-right-now bias.

C5) This may cause a regulatory backlash on legitimate projects. Puke. The last thing we need is excessive gov regulation around this market. But when misinformed lazy dumbasses lose significant amounts in a joke meme project like Dogecoin, you better believe there will be calls to step in.

C6) Elon is a narcissistic deuchebag. Do you really want a narcissistic billionaire in charge of the future of money? No. I want nobody in charge. I want a leaderless, headless, consensus driven decentralized network instead.

If you have Dogecoin and read this far, bravo, I’m impressed.

If you are a supporter of real blockchain projects (perhaps aligning with beautiful philosophical goals) and want to help ensure they succeed and aren’t stopped by the dark forces that be, then it’s incumbent on you too to help this revolution succeed. That means stopping scammers and combatting false narratives.

Rant over. I wish everyone a great bull market part two after this intermission. Have fun staying rich/poor.

Cheers y’all! ???? ????

PS: In anticipation of the incoming brain-dead-level attack comments... I’m not mad about your paper gains bro. ????

WOW

EDIT1: this direct message is why I post this: “Heya wanted to say thanks for that enlightening post I'm new into crypto and love when I see honest and informative posts. You don't know who and what to believe anymore.”

EDIT2: apparently litecoin mining (which doge is piggybacked on) is called Scrypt and it is much harder to 51% attack than I thought. I’ll look into it more.