A Joke Gone Too Far? DCG Founder Expects Dogecoin's Capitalization To Fall Below $1 Billion

In a Tweet from May 29, the investor predicted that the coin would go back below $1 billion (a 37-fold fall at the time he posted it).

It Wasn’t Intended as Currency – It’s a Joke

Mind you, Dogecoin was never even intended to become a serious cryptocurrency. Created in 2013 by Billy Markus and Jackson Palmer – two software engineers from IBM and Adobe respectively – it referred to a famous Doge meme about an alarmed Shiba Inu’s inner monologue.

I doubt Markus and Palmer imagined how far their prank would go. As I am writing this, the “fun and friendly internet currency” is the world’s 6th biggest crypto, with a total capitalization of over $50 billion. Up 7,400% since the beginning of the year, DOGE is “worth more than Covid-19 vaccine producer BioNTech, Dollar General and Marriott International”, according to Forbes. Well, it sounds like one hell of a joke.

Why Doge is Likely to Fail Catastrophically

Silbert, though, is not impressed. His Tweet started a heated discussion, which Dogecoin co-founder Billy Markus (Shibetoshi Nakamoto) joined at some point. Barry’s argument was simple: while it’s common for a currency’s value to come from collective belief, DOGE – unlike Bitcoin, for example – has no usefulness or utility, and that will be its undoing.

Aside from that, there is an enormous supply and demand issue with Doge in that in order for it to retain value it needs to have a tremendous amount of demand. This is because of the sheer volume of Doge that is mined every day. When the popularity of the coin falls, the price quickly drops because so much doge is mined that it further fuels the crash.

What do you think, do you believe in Dogecoin?

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