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How Dogecoin changed my perspective on cryptocurrency

words.steveklabnik.com

61–70 of 173 posts

Re: How Dogecoin changed my perspective on cryptocurrency

#61
post #58

I was in the early days of Dogecoin and it was fun BECAUSE it was worthless. Give out 10k on a lark for a funny picture, etc. Now that's it's being seen a real story of value, rather than a tool to send a bit of karma around... it's kinda losing the fun. Serious investor/speculator people are buying and selling, arbitrage between exchanges, absolutely massive GPU farms that out mine anything regular person could get.…

Well we could always make a new worthless currency. And set it so it intentionally inflates infinitely so that this can't happen. Zimbabwe-coin maybe.

Re: How Dogecoin changed my perspective on cryptocurrency

#62

Earlier quoted context omitted.

> Megacoin , Your Global Currency. Your Modern Wallet. Global, Anonymous, Secure. Sounds pretty serious business to me.

Are there any crypto-currencies that are not anonymous? I like secure, modern, low cost transactions, but I don't like the anonymity. I want a currency where everyone knows how much I spent, what I bought, and it applies to everyone. Does that exist?

Every transaction to every address is public with blockchain technology. The tricky bit is associating an address with a particular human...

This would affect any attempt at making something like this. I'm not sure that you can enforce the human/address connection in software.

Re: How Dogecoin changed my perspective on cryptocurrency

#63

Earlier quoted context omitted.

Someone might rightfully ask the question, "Should I invest in Dogecoin?", and at this stage of our financial markets, I really don't have a good answer for that. This is where recognising a distinction between investing and speculating comes in handy. It's quite possible to speculate in dogecoin (relying on greater fools coming after) in the short term and make some money. In the long term it is extremely unlikely t…

> Perhaps the next currency to emerge will be corporate sponsored rather than state-sponsored, What about celebrity-sponsored? "Buy his next album in Bieber-coin."

That would be hilarious, and quite in keeping with the status of celebrities in our society as the new aristocracy. Gaga-coin or Bieber-coin - millions of fans would actually buy that sort of thing. I think they'd need physical gold coins though, for extra bling, or perhaps Gaga would go for pink plastic. Oh, just looked, and it turns out someone already thought of this but with dollar bills:

http://www.trendhunter.com/trends/pop-culture-cash-by-james-...

Re: How Dogecoin changed my perspective on cryptocurrency

#64
post #58

I was in the early days of Dogecoin and it was fun BECAUSE it was worthless. Give out 10k on a lark for a funny picture, etc. Now that's it's being seen a real story of value, rather than a tool to send a bit of karma around... it's kinda losing the fun. Serious investor/speculator people are buying and selling, arbitrage between exchanges, absolutely massive GPU farms that out mine anything regular person could get.…

Well we could always make a new worthless currency. And set it so it intentionally inflates infinitely so that this can't happen. Zimbabwe-coin maybe.

>Well we could always make a new worthless currency. And set it so it intentionally inflates infinitely so that this can't happen. Zimbabwe-coin maybe.

Yeah that might work. If you could somehow decay the value of held currency to encourage spending directly that would be even better though I can't imagine it being feasible.

Re: How Dogecoin changed my perspective on cryptocurrency

#65

Earlier quoted context omitted.

> Perhaps the next currency to emerge will be corporate sponsored rather than state-sponsored, What about celebrity-sponsored? "Buy his next album in Bieber-coin."

That would be hilarious, and quite in keeping with the status of celebrities in our society as the new aristocracy. Gaga-coin or Bieber-coin - millions of fans would actually buy that sort of thing. I think they'd need physical gold coins though, for extra bling, or perhaps Gaga would go for pink plastic. Oh, just looked, and it turns out someone already thought of this but with dollar bills: http://www.trendhunter.c…

There has been talk that Snoop Dogg (I think he changed his name back from Snoop Lion, yes?) is going to sell his next album in Bitcoins...

Re: How Dogecoin changed my perspective on cryptocurrency

#66

There is one other aspect here I find very interesting, and it has to do with the efficient market hypothesis. The fact that people are buying Dogecoin simply because it is a fun internet meme kind of flies in the face of people who still view the price of financial assets as mostly rational, value-based prices, that can be deconstructed along the lines of asset-based valuation, financial ratios, available informatio…

> The fact that people are buying Dogecoin simply because it is a fun internet meme kind of flies in the face of people who still view the price of financial assets as mostly rational, value-based prices, ...

I don't see anything particularly unique about all of this. They buy dogecoin because they value the dogecoin more than the asset they're using as payment. That's how all purchases and trades work. You're just pointing out that the reason people value dogecoin more than the money they spend for it has to do not with something "essential," like buying food to stay alive, but rather for entertainment. The way you phrase things is making the concept sound more unusual than it actually is.

Re: How Dogecoin changed my perspective on cryptocurrency

#67
So the author got angry because he thought Dogecoin was making fun of cryptocurrency, then (wrongly) decided that Dogecoin was actually making fun of all currency?

Cryptocurrency is a very interesting phenomenon, especially since it involves very significant amounts of money. But the total value of all cryptocurrency is still very small compared with say, M0 (the most equivalent measure of the total number of US dollars). I personally predict a future with neither huge upward or downward movement in the total value of bitcoins. There is still plenty of room for improvement and innovation in fiat currency, and fiat currency doesn't have the problem that new ones pop up all the time.

Re: How Dogecoin changed my perspective on cryptocurrency

#68

Personally I think Dogecoin is hilarious. I put together a guide for anyone that is interested in playing around with it. http://cryptojunky.com/blog/2013/12/19/getting-started-with-... Regardless the intention of Dogecoin, it seems to be working as an introductory cryptocurrency for a lot of new users. Can't tell whether or not it will stick around yet, but I've heard a lot of responses from users saying it is the f…

I think one of the reasons Dogecoin is working so well as an introductory cryptocurrency is because it's all being done for a laugh. A lot of the most vocal people in the other currency communities are out to promote their mining pools or attract money into their favorite alt-coin, which turns off newcomers by giving the whole thing an air of carnival barking.

Agreed. I think unit bias might have something to do with it as well. People love receiving even 10 dogecoin, but the equivalent value in Bitcoin, which would be some small decimal, is not regarded as being as valuable (even though they're equivalent on exchanges).

What's more is that dogecoin's transaction fee is much much smaller than litecoin or Bitcoin, making it easier to make small transactions and give internet tips.

Re: How Dogecoin changed my perspective on cryptocurrency

#69
post #64

Earlier quoted context omitted.

Well we could always make a new worthless currency. And set it so it intentionally inflates infinitely so that this can't happen. Zimbabwe-coin maybe.

>Well we could always make a new worthless currency. And set it so it intentionally inflates infinitely so that this can't happen. Zimbabwe-coin maybe. Yeah that might work. If you could somehow decay the value of held currency to encourage spending directly that would be even better though I can't imagine it being feasible.

> If you could somehow decay the value of held currency to encourage spending directly

Freicoin has a demurrage fee, based on the theories of Silvio Gesell:

http://freico.in/

https://en.wikipedia.org/wiki/Silvio_Gesell

Re: How Dogecoin changed my perspective on cryptocurrency

#70
post #35

There is one other aspect here I find very interesting, and it has to do with the efficient market hypothesis. The fact that people are buying Dogecoin simply because it is a fun internet meme kind of flies in the face of people who still view the price of financial assets as mostly rational, value-based prices, that can be deconstructed along the lines of asset-based valuation, financial ratios, available informatio…

The fact that people are buying Dogecoin simply because it is a fun internet meme kind I think the point is that people do not buy Dogecoin because it's fun in itself but because it's the currency of fun , in other terms, their currency. "Their" meaning "a slice of the population" as a country is a slice of the population too. "Before", currencies were determined by geopolitic, now it's up to the people proximity in…

Bingo. There's not really much overhead to creating a new cryptocurrency, so worries about deflationary pressures should be removed since new currencies can emerge. The currencies will emerge out of specific cultures, in this case the meme culture, but as we've seen in the past, through various gaming cultures and as someone else suggested "Bieber-coin". (Exercise for the reader: is this much different than dot-com bubble paper millionaires with thousands of options?)

Think of who is in the 1% of a country's wealth--a mix of capitalists who were good at acquiring that currency and folks who inherited it. In the cryptocurrency world, the moneyed are the creators, the miners and in the case of dogecoin, the creative-meme class who serve as a marketing arm. Many of them are in it for the lulz, and consequently have great upside with little downside, since it will always retain an intrinsic value as a karma proxy. The speculators may inadvertently make real-world millionaires out of this class.

It would not surprise me at all in the next year to see companies with large social subcultures at least attempt to launch their own cryptocurrencies, or extend their in-game currencies to become linked to a cryptocurrency.

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