The biggest problem with $DOGE currently is that its market cap is not large enough.
No joke, here are my recent thoughts on $DOGE and this cycle of MEME market.
If after this cycle, $DOGE surpasses $ETH to become the second largest cryptocurrency by market cap, I would not be surprised at all.
1/ Musk's social experiment
I have always believed that the tech nouveau riche New Money represented by Musk is conducting experiments to disrupt existing sovereign currencies, or they are simply conforming to the times.
Using $BTC and $DOGE as weapons, to seize control of the dollar from the Old Money like the Federal Reserve.
To some extent, this fosters the ideas of the Austrian School's Mises and Hayek, namely (the denationalization of money).
Since we were born, credit currency has been a commonplace existence in our lives. We have been educated from a young age that currency issuance should not be based on a certain standard as value, and that mild inflation is beneficial to the economy. But is that really the case?
Mises pointed out the essence of inflation in his writings 100 years ago. Central banks overprint currency. Forming inflation means new currency issuance.
Assuming the current fiat currency is 1 trillion, with an inflation rate of 2%, it means that this year 20 billion fiat currency is newly added. But where will this newly added 20 billion fiat currency flow? Will it flow into our hands? Or when it flows into our hands, how much will be left?
In some countries, newly added currency is first poured into large projects controlled by economic oligarchs. Then these large projects redistribute it layer by layer. The parasites attached to this chain suck up blood and gain the right to distribute the newly added currency. Other people just bear the costs of inflation.
This is also why, in small towns with relatively low average income, you occasionally see luxury cars like Ferraris and Maseratis. Because these people, due to certain relationships, gained engineering contracting rights, occupying the upstream of the distribution of newly added currency and attaching themselves to this chain.
Similarly, in other countries, newly added currency is used to be given to interest groups or to purchase votes. Those voters seem to profit, but that's not necessarily the case.
Essentially, different paths lead to the same destination.
The 2008 subprime mortgage crisis can be considered a representative work of using unequal distribution to collapse the economy. Did any bankers go to jail or face punishment because of it? No. It was just ordinary people who bore the inflationary pressure brought by the government printing money to bail out the economy.
Essentially, this is the case for countries with central banks. This is also the fundamental reason for the birth of BTC.
In fact, the currency experiment of BTC has already begun to succeed to some extent. If Trump can indeed add BTC to the US balance sheet as promised, then I have no doubt that this is the beginning of BTC becoming a supranational currency.
And I have no doubt that human currency may return to some kind of standard, such as a dual standard of BTC and gold, or adding other cryptocurrencies and real assets, forming a basket of underlying values that support fiat currency.
In contrast, I feel that DOGE is more likely to enter balance sheets after BTC, or become the basis of this basket of underlying values.
2/ Consensus value is greater than utility value
Why do I think this round of DOGE may become the second largest cryptocurrency by market cap? In addition to Musk's support, the most important reason is that consensus value is greater than utility 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 that it can be reasonably priced using on-chain income, costs, and a series of valuation logic.
Especially with the approval of ETH ETF, after traditional funds have a purchasing channel, they will do so even more, that is, to use traditional PE and other valuation models to determine the reasonable price of ETH. To some extent, it has become the ceiling for utility tokens like ETH.
In contrast, BTC, DOGE, and PEPE are different. Certainly, we can use some on-chain indicators to value BTC. But these indicators point more towards the transfer and turnover of BTC, and have a very strong characteristic of seeking to cut the boat.
Therefore, the value of BTC actually relies on consensus, or a certain rebellious spirit of dissatisfaction with the reality of fiat currency, along with identity recognition. The value of consensus, identity recognition, and even freedom, these are priceless.
DOGE and PEPE are the same.
3/ The most breakout cryptocurrency, perhaps without exception.
DOGE is the most breakout cryptocurrency, perhaps without exception. Every bull market, social media is always filled with various content related to DOGE, even BTC finds it hard to compete.
The MEME attribute itself carries the characteristic of dissemination. From another perspective, MEME is the tokenization of rebellious spirit.
If new funds come in, looking at BTC's six-figure price at that time, it may be difficult to buy in. But MEME is different, the price is very affordable.
DOGE is the people's BTC.
Therefore, the holding group of DOGE will be larger and more disseminable.
If the New Money represented by Musk is really conducting some currency experiments. Or rather, it is the trend of the times that prompts certain people to stand up, lead this era, and lead the emerging class in a power struggle.
Then DOGE needs a more stable, larger holding group, and more ways to reach ordinary people.
So, the only problem with DOGE currently is that the price is not high enough and the market cap is not large enough.
I am not sure if I have fallen into the echo chamber effect, or some form of self-indulgence.
I entered at $0.1, $0.2, $0.3, $0.4, constantly increasing my position, now $0.4 yesterday $0.5, doge has made 4 times profit.
Has been studying him.
This round of DOGE still has 10 times to go 1doge=5 USD #doge⚡
