Dogecoin dropped by 40% from 75 cent to about 40 cent following Elon Musk’s hosting of Saturday Night Live (SNL).
In one segment Musk appears as the financial expert Lloyd Ostertag. Call me the dogefather, Musk says.
What is dogecoin, he is asked numerous times with the joke presumably being that he can’t explain what it is in a way the interviewer understands.
“Yeeeah like I said it’s a digital currency,” says Musk. Michael Che takes a dollar off his pocket: “This a dolla, it’s real.”
“Say sorta, sort of” says Musk, adding that dogecoin is “about as real as that dollar.” What is dogecoin tho, he is asked with Musk stating: “It’s the future of currency. It’s an unstoppable financial vehicle that is going to take over the world.”
Eventually he then says it’s a cryptocurrency you can trade for conventional money. So it’s a hustle, says Che. Yeah it’s a hustle says Musk.
Dogecoin has kind of recovered a bit. It even nearly touched 50 cent, with a crash of sorts to be expected after SNL regardless of whatever happened there.
That’s because it surged as you can see ahead of SNL and because of Musk on SNL, so at some point it was going to give downwards.
The question is whether it now maintains value here in perhaps a sideways if the doge show is over for now, with it to maybe return again in the next altcoin season.
Or whether it reks further, or maybe more surprisingly whether it just keeps the show in line with the wider crypto bull market.
But what is doge tho??? For bitcoin you can say it’s a store of value, eth is the world computer. Doge is meant to be a currency, like a real one, like the dollar, but few actually use it as a currency.
They could, and with its significant market cap it could act as a substitute for bitcoin or even eth which tend to have significant transaction fees.
Dogecoin maybe doesn’t scale either, so it can potentially play only a limited role, but in some way you do have to wonder what is so incomprehensible about doge being a currency?
You can move it without going to your bank, to anywhere in the world, and there’s no one stoping you. It can’t be faked or replicated or inflated outside of the rules of the code. It’s digital money, ‘about as real as the dollar.’
For something like bitcoin we’d say more real not least because we can verify it all ourself, while Fed hasn’t been audited, so who knows how many trillions they may have printed that they never told us about.
Doge instead is a very transparent and public code based unit of account. That’s confusing however because we take ‘money’ for granted. The dollar is money and that’s that. Well, now there are new types of money and their value goes up and down based on market demand.
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