>"To deliver a peer-to-peer alternative to cash that, through decentralization, did away with the need for trust in financial institutions, which the 2008 crisis showed to be unscrupulous, and often corrupt."
The sort of activity which led to the financial crisis would not be mitigated by the establishment of a decentralized currency. Decentralization would not do away with the need for financial institutions (or the toxic incentives that can drive them and the ecosystem in which they exist).
The USD is pretty decentralized already. Sure the money supply itself is centralized, but the USD is a functioning currency because all people who accept and deal in dollars accept the fact that the dollar is a currency. We're all decentralized nodes in the Fiat network.
https://www.reddit.com/r/dogecoin/comments/7oxi53/developer_... , from one of the current Dogecoin devs:
> I feel some are using our rise to illustrate the absurdity of cryptocurrency pricing (http://uk.businessinsider.com/dogecoin-cryptocurrency-has-ma.... for example). To me, in an environment where a cryptoasset with $30 USD equivalent transaction fees has a market cap of over a quarter of trillion dollars, I don't think we're the absurd one. Yes we take ourselves less seriously, but that doesn't mean we're not serious behind the scenes. We're a 4 year old currency with transaction fees barely over a cent and significantly higher throughput than most other cryptocurrencies.
(Disclaimer: I know him personally.)
DOGE is a pretty good currency to use for moving money between exchanges. That is why its used. If BTC had low/no transaction fees and was fast, people would have less incentive to use DOGE.
Overvalued? Its possible but I think the entire crypto market is actually insanely undervalued. I was talking to my financial advisor the other day and he said pretty much 100% of people now are asking him about crypto and are considering putting money in. This seems like it is just the start.
The figure for the .com crash was around a 7 trillion dollar market cap. Crypto is 0.7 trillion today and its more of an international market then the .com days. Easily cypto could 10x in size over the next year or two.
In the end its super high risk speculation. You can figure the entire market is overvalued but there is no doubt that there is money to be made in several sub-sectors of the crypto market.
> Once the cryptocurrency price bubble pops and takes all the hype with it, will the community be able to recover the energy it needs to build real, innovative technology once again?
At this point, if you put Dogecoin and Bitcoin next to each other, Bitcoin looks like the joke. It's slow, the fees are too high, and its developers won't address these problems.
Dogecoin is kinda like a control/placebo for real cryptocoins. And the fact that it exploded without providing real distinct utility apart from existing coins is an indication that something is indeed wrong.
Anyone remember when Dogecoin raised money for the Jamaican bobslead team.
Wasn’t Dodgecoin created to be an indicator of how much of a bubble the market is?
Crypto allows people to do 2 very important and useful things:
1) Move money around government currency controls (for a small fee)
2) Invest and speculate on potentially valuable assets. Sure you can't live in, eat, or drive a Bitcoin, but finance/trading is all about creating and betting on abstractions, and virtual currencies are the ultimate abstraction. Crypto is especially attractive given the current easy money low volatility environment)
I am similar to the author in that I was very excited about blockchain and its implications in 2013/2014 and had recently become very disillusioned with how adoption played out in the real world.
I think it's time to move past this disillusionment and face reality instead of continuously being angry at how nonsensical a lot of this is, no matter how "useful" we really think these 2 current uses of cryptocurrency are.
The reality is that we are living in a world (in the US at least) we trust traditional institutions/knowledge to be able to provide common goods and help us raise our standard of living less and less. What do we want to do about that? Getting mad/worried about cryptocurrency speculation is not the answer.
«Once the cryptocurrency price bubble pops and takes all the hype with it, will the community be able to recover the energy it needs to build real, innovative technology once again?»
Of course it will recover. Blockchain technologies are so transformational that you need a lot more than a simple price crash to kill cryptocurrencies. Of all persons, the creator of a cryptocurrency (even a joke one) should understand this. In fact, people always seem to forget that Bitcoin (actually the crypto market at large) has already experienced 4-5 major crashes in the last 8 years where prices lost between 50% or 95%(!), sometimes remaining depressed for months, but the market has always recovered.
The founder who was given the title as "inventor" in this article is not the inventor. He did not mention the developer who help do the C++ source code and actually invent Dogecoin. I would call my cryptocurrency a joke too probably if I saw the price rise exponentially and didn't put the work to make it a viable blockchain. It is easy to criticize from an armchair.
> "In many ways, 2017 marked the year that cryptocurrency stopped being about technologically innovative peer-to-peer cash and instead essentially became a new, unregulated penny stock market."
I don't think it stopped being about tech innovation - there is a ton of stuff happening around proof-of-stake, layer 2 networks, state channels etc. It's just that the stories around the speculative aspects of the cryptocurrency assets have been dominating in 2017.
The problem is the use of market cap as a valuation metric. It is absurd to think that your joke cryptocurrency is actually worth $2B just because one person was willing to trade at a price that implies $2B.
To show the absurdity, consider the people who buy used cooking oil from restaurants to turn into biodiesel for their modified 1975 mercedes 300D. They might pay $2/gallon for that used cooking oil. Would it be reasonable to assume that the market size of used cooking oil is now $2 * (Gallons of used cooking oil produced yearly)? No, that's absurd. Someone paid a high price for it, that doesn't mean everybody did or will.
Pretty happy with the DOGE bubble since I've traded out a couple thousand already for other coins... thumbs up But, yeah, I'd wager that eventually the bubble will burst and there will be few remaining cryptocurrencies that hold their value, IMO.
I think that this article has too many anecdotal references to scams and profiteers but there isn't any sense of the statistics or scale. Without knowing if people are behaving worse on average in the crypto world or the fiat world, I don't find them very helpful.
My anecdotal experience has been really wonderful in crypto. I've become part of a really nice online community where people are eager to share ideas and help each other out. I've also found the crypto market to be far more approachable than traditional investments for myself. But who knows, maybe I just have been lucky?
Just wait for Wall Street to start building complex derivative products that will be used as a vehicle for these cryptocurrencies and all of a sudden the bubble will reach epic proportions.
Jackson just mad because he sold instead of hodl
Where do you sell your dogies?
by my reading, Author thinks we're all better off when we're protected from our irrationality by regulatory entities keeping us from doing stupid shit with our money.
i think the run on DOGE is about how much easier it is to move DOGE between exchanges. i could care less about pump&dumps... that type of behavior will naturally stop if we leave ourselves to discover the risks.
if we use a regulatory mechanism to prevent folks from engaging in that type of behavior, we may very well prevent speculation, but we won't teach anybody anything.
i think it's smarter, on the whole, to let the crazy crypto churn continue, and see where it takes us, than it is to disenfranchise all kinds of folks from learning about markets/currency/etc... by regulating them away from it.
That something wrong with fiat, in my country all political parties battle for control of the national bank that issues money, why, well there are stories of powerful political leaders, kicking the door and just asking for money.
It may have been meant as a joke but it has a purpose. but it's become a base market in several exchanges.
A copy/paste from /u/palmerstoned on reddit on 2018 Jan 7. What do you guys think?
/u/palmerstoned: There is no fucking limit on how high this can go (compared to traditional stocks where there actually is a limit due to economic indicators like P/E ratio's). When someone says it's overvalued or undervalued, they are automatically wrong because we have not found any method yet to actually value crypto's, unless you compare the value between crypto's. The nominal value of derivatives in the world is estimated at 1.2 quadrillion (probably a gross overstatement and a bad comparison but a man can dream). Let that sink in for a moment.
/u/palmerstoned: We are still far away from large investment bank ETF's where they actually buy Bitcoins or Ethereum. But it will come, they will never let all this money lying around. The problem right now is that exchanges aren't safe enough yet to be buying Bitcoins by the millions. UI interfaces for wallets are way tooo complex for the average Wall Street trading desk. But this will change, eventually. (definitely keep an eye out for investment opportunities in this niche market). Goldman Sachs has already announced they will put up a trading desk by the summer. Things are about to get a lot more crazy!