#doge (dogecoin), which has been admitted to be a prank, should be an eye-opening view into the world of crypto; but not in a good way.
#Dogecoin being propped up further by enthusiastic Elon Musk (#tesla) followers, and the same with $BTC, rather makes crypto less enticing than it’s start.
Don’t get me wrong, Elon Musk is pushing the boundaries of mankind with some of his technologies. It truly is impressive to witness. But that doesn’t mean he’s all knowing, nor that his bet in crypto is transparent to all. (He has a history of less than transparent disclosures.)
Yes, banks and investment firms, brokerages, many of these have jumped into the crypto markets – but I would be hesitant to say they consider these true ‘investments’ rather than trades, or simply supply for their own customers.
Why is Dogecoin’s movement a concern?
Crypto markets are moving solely based on speculation rather than any real-world connection to comparable value in goods and services – most notably in relation to other currencies. Really, this is also the same for Bitcoin and other Crypto currencies, not just Dogecoin.
Normal Fiat currencies are affected on relative changes to other currency inflation or deflation, along with the expected purchasing power each holds.
While I agree, fiat currencies can and have been heavily manipulated by governing bodies, to the point of impoverishment in some examples, such as Venezuela and the long inflation of currency in the United States; that is mutually exclusive from the claim that Crypto Currencies are the future of currency.
The largest reason they may not in fact be the future is the very nature of their claim to be an investment- while also being a currency. This is a literal impossibility as an investment is assumed to hold value and become more valuable over time. While one can argue that is what can be seen in the markets, that is actually an error in perception. The markets are becoming more valuable when compared to the dollar – because so many have faith in them (at this moment.)
But what happens when faith is gone, and, the crypto markets never become stable?
When Crypto is but a hole to pile money into it creates something; a constant upturn, and that does not make a stable currency, it creates unstable economies where the price of bread, if only purchasable by Crypto coin, would continually go down – hourly.
That is not to say I don’t see some form of decentralized crypto currency and indeed wallets with your encryption keys as being a future; just not in the way they are today.
When mankind goes to space and travels to distant solar systems, a universal currency that can be self-contained and traded without a central bank will be required to function.
But, we are sadly far from that fantastic reality.
Robinhood Halts Crypto 1/29/2021
Elon Musk Comments
#cryptocurrency #crypto #bitcoin #dogecoin #elonmusk #cryptomarkets