Currently, the biggest challenge facing Dogecoin (DOGE) is that its market capitalization is not yet sufficient to compete with other mainstream cryptocurrencies. However, this is not an issue to be ignored, as the size of market capitalization is often directly related to market influence and investor confidence. Here are some of my thoughts on DOGE and the MEME market during this cryptocurrency cycle.

• Social experiment led by Musk

I have always believed that the tech nouveau riche represented by Musk is trying to disrupt the existing sovereign currency system, or at least is following the trend of the times. They use BTC and DOGE as weapons to attempt to seize control of the dollar from traditional power centers like the Federal Reserve. This, to some extent, is promoting the ideas of Austrian economists like Mises and Hayek—(the denationalization of money).

We have been educated since childhood that currency issuance should not rely on a certain standard as a value basis, and that moderate inflation is beneficial to the economy. But is this really the case? Mises revealed the essence of inflation a century ago: excessive currency issuance by central banks leads to inflation, that is, currency expansion. If the current total amount of fiat currency is 1 trillion and the inflation rate is 2%, then this year an additional 20 billion fiat currency will be created. But where will this additional 20 billion fiat currency go? Will it flow to you and me? Or rather, when this new currency flows to you and me, how much is left?

In certain countries, new currency is first allocated to large projects controlled by economic oligarchs, and then distributed layer by layer by these projects. The parasites attached to this chain suck up blood, gaining distribution rights to the new currency. Meanwhile, others can only bear the costs of inflation.

This is also why in small towns with average incomes, you occasionally see luxury cars like Ferraris and Maseratis. Because these individuals, due to certain connections, have obtained engineering contracts, occupying the upstream of new currency distribution, relying on this chain.

In other countries, new currency is used to support interest groups or buy votes. Those voters seem to profit, but in reality, it is not so.

Essentially, these are all the same thing.

The subprime crisis of 2008 is a typical case of economic collapse caused by unequal distribution. Did any bankers end up in jail or face punishment because of it? No. Ordinary people, however, bore the inflationary pressure brought about by the government printing money to bail out the economy.

Countries with central banks all face this situation, which is also the fundamental reason for the birth of BTC.

In fact, the monetary experiment of BTC has already begun to move towards success to some extent. If Trump can indeed bring BTC into the U.S. balance sheet as promised, I have no doubt that this will mark the beginning of BTC as a super-sovereign currency.

I also have no doubt that human currency may return to some kind of standard, such as a dual standard of BTC and gold, or perhaps with other cryptocurrencies and real-world assets, forming a package of underlying values that support fiat currency.

In comparison, I believe DOGE is more likely to enter the balance sheet after BTC, or become the foundation of this package of underlying values.

• Consensus value is greater than practical value

Why do I think DOGE may become the second largest cryptocurrency by market capitalization this time? Aside from Musk's support, the most important reason is that consensus value is greater than practical value.

Many cryptocurrencies represented by ETH are actually utility tokens. The value of ETH is closely related to the performance of Ethereum and its related ecosystem, meaning it can be reasonably priced using on-chain income, costs, and other valuation logic.

Especially after the approval of the ETH ETF, traditional funds have purchasing channels, and they are more likely to do so, by using traditional PE and other valuation models to judge the reasonable price of ETH. To some extent, this has become a ceiling for utility tokens like ETH.

In contrast, BTC, DOGE, and PEPE are different. While we can use some on-chain indicators to value BTC, these indicators point more to the transfer and circulation of BTC, and carry a very strong attribute of seeking the sword by carving the boat.

Therefore, the value of BTC actually relies on consensus or some kind of rebellious spirit against the dissatisfaction with real fiat currency, along with identity recognition. Consensus value, identity recognition value, and even freedom are all priceless.

The same is true for DOGE and PEPE.

• The most popular cryptocurrency asset, perhaps without exception

DOGE is the most popular cryptocurrency asset, perhaps without exception. In every bull market, social media is always filled with various content related to DOGE, even BTC finds it hard to keep up.

The attribute of MEME itself carries a propagation characteristic. From another perspective, MEME is the tokenization of rebellious spirit.

If new funds come in, looking at the six-figure price of BTC at that time may make it difficult to invest. But MEME is different; the price is very accessible.

DOGE is the people's BTC.

Therefore, the holding group of DOGE will be larger and more propagative.

If the New Money represented by Elon Musk is indeed conducting certain monetary experiments, or rather, if the trends of the times are prompting certain individuals to step up and lead this era, leading the new emerging class's power struggle.

Therefore, DOGE needs a more stable and larger holding group, as well as more ways to reach ordinary people.

So, the only problem with DOGE right now is that the price is not high enough, and the market capitalization is not large enough.

I am not sure if I have fallen into an echo chamber effect or some kind of self-satisfaction. But I look forward to the arrival of the above day, because I am just an ordinary person.

Go DOGE, go crypto market.

Elon Musk-themed puppy 𝙋𝙪𝙥𝙥𝙞𝙚𝙨 holds an address of 16,000, with a market cap of less than 100 million, showing decent potential.