I just love this quote from a Bloomburg article:
Just imagine traveling 10 years back in time and trying to explain this to someone; just imagine what an idiot you’d feel like. “There’s going to be this online currency that people think is a form of digital gold, and then there’s going to be a different online currency that is a parody of the first one based on a meme about a talking Shiba Inu, and that one will have a market capitalization bigger than 80% of the companies in the S&P 500, and its value will fluctuate based on things like who is hosting ‘Saturday Night Live’ and whether people tweet a hashtag about it on the pot-joke holiday, and Bloomberg will write articles and banks will write research notes about those sorts of catalysts, and it will remain a perfectly ridiculous content-free parody even as people properly take it completely seriously because there are billions of dollars at stake.”
That really puts this into perspective. As I’ve said before, I’m not a negative nellie on cryptocurrecy but we seem to be in the dot com era of this thing. Dogecoin reminds me of all of the insane companies going public in the late 1990s just because they could.
People will make and lose real money here, just like they did in the 1990s and when the dust settles, real value propositions will start to emerge. In a strange way, the utter clownishness makes me bullish long-term on cryptocurrency. As Mark Twain is reputed to have said, “History doesn’t repeat, but it often rhymes.”