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eli

It's still a joke

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It used to be a joke. It still is. But it used to too.

But it's a joke that makes some people millionaires.

I for one will be laughing all the way to the bank if Doge reaches err... $200?

A joke that makes some people PAPER millionaires. People are ignorant about liquidity risk and just assume there will be buyers when they want to cash out.

Exactly. When you look at the depth of the order books (https://bittrex.com/Market/Index?MarketName=USDT-DOGE), even selling $1MM will shift the price down by nearly 50%.

This is a valid point in general, but for top tier currencies such as Doge, there are literally hundreds of exchanges with such orderbooks so it's not a concern.

Further, most large trades don't take place on exchanges public orderbooks, but on private OTC desks with separate books, for this reason.

Generally, large buyers are matched OTC to large sellers at prices a little different to the on-market, but better than relying on on-market liquidity.

The same happens in traditional finance, or anywhere. For example, if a taxi company wants to buy 1000 cars, they won't attempt to get them from the local yard.

Bittrex is a dead exchange these days. On a particularly frothy day DOGE hit something like 80B in voilume across all pairs and exchanges.

The order books are not "real" its mostly bots who place and remove orders on the fly and they react to the price and to the price on other exchanges. There is no way to know how much the price would drop if someone sells for $1MM. also selling all at once, selling it over a few minutes or selling it over an few hours will drastically change the effect. No one who wants to maximize profit would sell fast if liquidity is low because obviously your average at lower then.

Someone must be selling them at 30 cents, for other people to buy it. So some people are definitely making money.

I used to be active in crypto subreddits. It's incredible how many people don't realize 'for every buyer, there is a seller'.

A lot of the commenters did not grasp basic economics.

I wonder how often they're the same person

Yes but that doesn’t mean people are selling large amounts each day. What is the volume? And how much of it is wash trading?

The volume has been huge, at some point it was the most traded perp on FTX.

I don't think wash trading is that prevalent (except for maybe in some minor books on Binance).

It has made many people actual millionaires, there’s plenty of liquidity in Doge.

That can be said about any stock though... or you know... debit card and banks.

> But it's a joke that makes some people millionaires.

Where does that money come from? There isn’t a Doge Corporation backing this up that sells actual products and collects actual revenue.

The only way to become a millionaire through DogeCoin would be to invest $10,000 at the low and sell at the high. Who are you selling to? New entrants, hoping to get another 10X or 100X run-up, funded by even newer entrants, also hoping for their 10X and so on.

Everyone’s hoping to become a millionaire, but in reality they’re mostly just pumping money into a system to make the previous entrants millionaires.

With Doge specifically, a lot of people have lost money when they bought in at previous highs. Who did they buy from? Previous owners looking to exit before the music stops.

It’s not so much a joke as a game: Put money in, see how many other people you can trick into putting money in after you, and then sell them your coins before it all collapses.

I've been trying to explain this to my friends but they keep insisting that Dogecoin has real value.

Just my opinion, but I think one key difference here is that while yes there are tons of people thinking and hoping they're going to get rich by "investing" in Dogecoin, with the type of limit Doge has, it's able to be used as real currency. We don't actually want the value of Doge to skyrocket too much because then it just becomes another store of value like Bitcoin. One of the slogans you'll hear a lot in the Doge community is 1 DOGE = 1 DOGE. And the point is to convert your fiat into Doge and use that as currency instead. Not pump and dump. Out of all cryptos, Doge is one of the best options for that. But we'll see what happens.

1 BTC = 1 BTC

used to be a thing as well.

I see this in the Bitcoin community too. Lots of people say "I'll never sell my Bitcoin for dollars. I'll use it once it becomes the world's reserve currency."

But selling, and trading for goods, are equivalent. If you win big on a coin, it doesn't make a difference whether you sell your holdings for $200,000 USD to buy a Lamborghini or directly trade your holdings for the same car. Either way there are only so many Lambos to go around and lots of paper millionaires thinking they can buy one.

It has value to me, because it makes me happy to hold some. I also find it useful as a low-fee way to transfer assets between exchanges, because it's one of the most widely supported coins across exchanges. Both of these things make people want (value) it.

> I also find it useful as a low-fee way to transfer assets between exchanges, because it's one of the most widely supported coins across exchanges.

Are you looking at a different set of exchanges than I am? Neither Blockfi, Coinbase, nor Celsius support Doge.

The funny thing about dogecoin is that it was designed to be inflationary, so it's basically guaranteed to lose you money in the long run.

Many people who invested in Doge assured me that this is definitely not a pyramid scheme.

It's a joke that's also a pyramid scheme.

Making money on these things is like playing the lottery. You buy a small ticket hopping that it is your turn to become millionaire. And it happens with the same frequency of the lottery. One in every few million will become very rich, like the ones who bought bitcoin initially, and the others will be spending money chasing their next lottery ticket.

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