This One Fact Could Drive Dogecoin Up 100X

I started this post planning to write about how silly Dogecoin is. For the uninitiated, Dogecoin is a cryptocurrency based on a meme of a Shiba Inu. Its price has risen by more than a factor of 20 in the last year. Some recent gains have come from Elon Musk and other celebrities promoting the coin on social media.

But then I read that Dogecoin has basically the same underlying technology as Bitcoin:

It was a find-and-replace job.

Ctrl+F ‘Bitcoin,’ replace with ‘Dogecoin.’

The total value of all Bitcoin is $900 billion. The total value of all Dogecoin is $6.4 billion. If the code behind them is essentially the same, why is there such a huge disparity in value? I would expect these coins to converge in time, whether that means Bitcoin going down, Dogecoin going up, etc.

So, will I be loading up on Dogecoin? No. Like other cryptos, I don’t see any fundamental value there. Unlike a stock or bond, there’s no income stream. Unlike major currencies, they’re incredibly volatile and accepted practically nowhere. Nor do they have much of a track record. For Dogecoin’s $6 billion, you could buy Huntsman Corporation, a chemical company with profits of over $200 million/year, outright. I like that a lot better than a speculative crypto with no income stream.

That said, if you’re a believer in Bitcoin, I think you have to be a believer in Dogecoin also. I’ll be interested to see where it goes!

For more on Dogecoin, meme stocks, and the Wallstreetbets phenomenon, check out these posts:

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Photo: “Полный обзор криптовалюты Dogecoin” by dmitriyshustovb3 is licensed under CC BY-NC 2.0

Bots Are Pumping GameStop And Dogecoin

Buy GameStop!

New research indicates that bots are pumping GameStop shares on Twitter, Facebook, and Instagram:

PiiQ said it identified very similar daily “start and stop patterns” in the GameStop-related posts, with activity starting at the beginning of the trading day, followed by a large spike at the end of the trading day. Such patterns are indicative of bots, said Aaron Barr, co-founder and chief technology officer of PiiQ.

“We saw clear patterns of artificial behavior across the other four social media platforms. When you think of organic content, it’s variable in the day, variable day-to-day. It doesn’t have the exact same pattern every day for a month,” he said.

The research firm, PiiQ Media, also found signs of robot activity in other stocks favored by the Wallstreetbets community, along with Dogecoin cryptocurrency.

Reddit claims it has seen no sign of bot activity, but anecdotally, I notice so many posts there that have basically no content. They just say “GME to the moon!” or what not. My gut tells me a lot of these are bots, but I can’t prove that.

For more on AMC and the Wallstreetbets phenonmenon, check out these posts:

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Photo: “Robot” by andreavallejos is licensed under CC BY-ND 2.0