> But it's a joke that makes some people millionaires.
Where does that money come from? There isn’t a Doge Corporation backing this up that sells actual products and collects actual revenue.
The only way to become a millionaire through DogeCoin would be to invest $10,000 at the low and sell at the high. Who are you selling to? New entrants, hoping to get another 10X or 100X run-up, funded by even newer entrants, also hoping for their 10X and so on.
Everyone’s hoping to become a millionaire, but in reality they’re mostly just pumping money into a system to make the previous entrants millionaires.
With Doge specifically, a lot of people have lost money when they bought in at previous highs. Who did they buy from? Previous owners looking to exit before the music stops.
It’s not so much a joke as a game: Put money in, see how many other people you can trick into putting money in after you, and then sell them your coins before it all collapses.
Just my opinion, but I think one key difference here is that while yes there are tons of people thinking and hoping they're going to get rich by "investing" in Dogecoin, with the type of limit Doge has, it's able to be used as real currency. We don't actually want the value of Doge to skyrocket too much because then it just becomes another store of value like Bitcoin. One of the slogans you'll hear a lot in the Doge community is 1 DOGE = 1 DOGE. And the point is to convert your fiat into Doge and use that as currency instead. Not pump and dump. Out of all cryptos, Doge is one of the best options for that. But we'll see what happens.
I see this in the Bitcoin community too. Lots of people say "I'll never sell my Bitcoin for dollars. I'll use it once it becomes the world's reserve currency."
But selling, and trading for goods, are equivalent. If you win big on a coin, it doesn't make a difference whether you sell your holdings for $200,000 USD to buy a Lamborghini or directly trade your holdings for the same car. Either way there are only so many Lambos to go around and lots of paper millionaires thinking they can buy one.
It has value to me, because it makes me happy to hold some. I also find it useful as a low-fee way to transfer assets between exchanges, because it's one of the most widely supported coins across exchanges. Both of these things make people want (value) it.
Where does that money come from? There isn’t a Doge Corporation backing this up that sells actual products and collects actual revenue.
The only way to become a millionaire through DogeCoin would be to invest $10,000 at the low and sell at the high. Who are you selling to? New entrants, hoping to get another 10X or 100X run-up, funded by even newer entrants, also hoping for their 10X and so on.
Everyone’s hoping to become a millionaire, but in reality they’re mostly just pumping money into a system to make the previous entrants millionaires.
With Doge specifically, a lot of people have lost money when they bought in at previous highs. Who did they buy from? Previous owners looking to exit before the music stops.
It’s not so much a joke as a game: Put money in, see how many other people you can trick into putting money in after you, and then sell them your coins before it all collapses.