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Deconstructing Dogecoin — Not All Cryptocurrencies are Equal
When influencers spread enthusiasm and confusion at the same time
Elon Musk has a lot to answer for when it comes to cryptocurrency. His ability to influence millions with single tweet must be a source of considerable envy amongst wannabe influencers the world over.
He’s one of a few key players in the world of Bitcoin whose names are in the headlines constantly. He recently changed his Twitter profile so that it simply read ‘Bitcoin’ — that gesture alone prompted the price of a single Bitcoin to climb beyond $40,000 for the second time this year.
It turns out that through his antics he was teasing that Tesla was in the process of investing $1.5billion of its corporate treasury in Bitcoin. After that investment had been announced in the media, the price climbed higher and continues to nudge at the door of $50,000.
For Bitcoin investors like me, such interventions and influence are welcomed. Large-scale corporate endorsement brings Bitcoin forward in the public conversation which will hopefully encourage people to get educated on the topic. That in turn should help Bitcoin to become more widely accepted or at least more universally tolerated. The increase in value is also welcome for those who are holding it for the long-term.
His enthusiasm isn’t reserved for Bitcoin however. In recent weeks Elon has tweeted regularly about his affection for another cryptocurrency — Dogecoin.
A ‘joke’ with an $8billion market capitalisation
If Bitcoin were analogous to a Tesla Model S in automotive terms, then Dogecoin would seem to be the equivalent of Herbie — the Disney movies’ VW Beetle…
