Printable View
What?s driving the upward trend?
As a non crypto literate investor I?m dumbfounded at its rapid increase.
I purchased $500 2 worth 2 years ago when I opened my account with Robinhood thinking I might earn a few bucks but damn, it?s gone crazy this week.
Anyone crypto literate have an answer?
Couple things... first and foremost BTC and ETH have smashed through prior ATHs at 63k and 2.5k. That will bring the entire market up as the 2 most prevalent currencies. Second would be the GameStop saga. Read up on it if you haven't but basically all the zoomers, tik tok, and social media made their stand against Robinhood and the SEC shutting down GS trading by moving to a unregulated and decentralized option, which for whatever reason was Dogecoin. I think it was just because it's a meme coin with literally no utility and of course Elon Musk is constantly shilling it and making his doge jokes. Also, if you bought $500 2 years ago, congrats on being rich, I take tips lol
I?m not going to claim crypto expertise but the rise in value is actually more about the relative decline of the US Dollar. All assets are rising even as we are in pandemic and some economic sectors are stalled. Your home value is also going up. The existence of Coinbase, Cash App, and Cypto Venmo is creating a new platform for people to save and protect a store of value.
If the government keeps spending and spending more than actually exists as taxation, they increase the monetary base and thus inflation. That?s Chicago Economics 101. My dad got his PhD there, not me.
What the smartest economic actors are seeing is that the USA is adopting MMT economics. MMT means that the government can print as much money as it wants, cause the Government is the issuer of the tokens. There is a book written by a lady from UM-Kansas City that explains it all. Crazy read that should only be read after you contemplate the meaning of limited government, free association, and federalism.
She says relax, there is no inflation that she can detect. But that the Government needs more money to provide all the services people need. Like free tuition, cause cost is going up. Like healthcare, cost cost is going up. Like cheaper housing, cause cost is going up. This lady did not invent MMT, basically every country that spends too much adopts MMT. There was MMT in Byzantium.
While I don't think any of this related to Dogecoin specifically, as it literally provides not utility or functionality, I agree with what you're saying as an overall sentiment towards crypto. I think 10% of your net worth in crypto is not an absurd concept anymore.Quote:
Originally Posted by The Federalist Engineer
I no economist but the dollar is about to implode with all the debt and the IMF and major world players want the dollar taken off the international stage. With the technology and movement of gov takeover, electronic money is on its way fast. Many are betting those kind of crypto currencies will be the answer. Will they who knows but the dollar's days are limited I hate to say it and when it goes our freedoms will be erased over night. Better get ready.Quote:
Originally Posted by Op4isabitch
Crypto currency is a good ways from being a currency. There is zero stability currently. It's just another asset class to make money from right now.Quote:
Originally Posted by R2Dawg
Just make money from it and chill.
There are multiple stable currencies. DAI, USDC, Tether, USDT. There are ones tied to USD, Euro, price of gold, etc.Quote:
Originally Posted by SPMT
Ok.Quote:
Originally Posted by vv83