Tag Archives: Bitcoin

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

What If Social Networks Were Run on the Blockchain by…Us?

Google owns YouTube. Facebook owns Facebook and Instagram. Who owns e-mail?

Trick question: the answer is, no one! It’s an open protocol anyone can use. So are RSS feeds used to distribute podcasts and the Domain Name System that tells your browser where to go when you type in google.com.

Many are concerned about the power that social media companies have, but what if social media were open and governed by the public at large? Blockchain technology may provide the means to do that, per a new article by top-flight venture capital firm Andreessen Horowitz:

How do social networks decide which users to verify or ban? How do search engines decide how to rank websites? One minute social networks court media organizations and small businesses, the next minute they de-prioritize their content or change the revenue split. The power of these platforms has created widespread societal tensions, as seen in debates over fake news, state-sponsored bots, privacy laws, and algorithmic biases.

That’s why the pendulum is swinging back to an internet governed by open, community-controlled services. This has only recently become possible, thanks to technologies arising from the blockchain and cryptocurrencies.

If users collectively hosted a social network on their computers using blockchain-style distributed computing, they could govern the network outside any tech company. Algorithm changes and deplatforming would be their decision.

I find this future intriguing and suspect it’s only a matter of time until such a tool arises. Perhaps you will build one!

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Photo: “Bitcoin ‘Blockchain’ Necklace” by btckeychain is licensed under CC BY 2.0