Anticipating some comments about how this is fine and market value is whatever people decide it is.
Is that really the world you want to live in?
Think about the other side of the coin: if the market is undervaluing something truly important in the long term like fighting climate change, do we really want to throw our hands up and say “them’s the rules, let the market be”?
There's plenty of things I don't like about the world I live in, but this particular one requires a bit of perspective.
The way market cap is calculated can be misleading. It takes the price of the last sale and multiplies it by every object. There's no reason to think that the second one would sell for the same amount, especially for an object with artificial scarcity like a cryptocurrency. (It's true for a company as well, but to a far lesser degree.)
That's not to say that this isn't really dumb. Cryptocurrencies aren't even really artificially scarce: the whole joke of Dogecoin is that you can just make them up on the spot as a gag. The fact that a ton of energy is being wasted on all of this makes the joke rather unfunny.
As for what to do about it... I'd rather not throw my hands up about it, but I will say that it's not simple to fix.
Who decides what is "important"? Who decides what is "over/undervalued"? What do you recommend, a new government agency to ensure that all people investing are investing in "properly" valued securities/coins/etc.? You say the coin is overvalued, however the average person obviously disagrees - this is the point and purpose of a free market. Supply and demand.
If you don't want to invest in something, don't. You shouldn't (and likely don't want) some other person or entity deciding what is best for you/family, so perhaps we should stop freaking out about things and/or telling other people how to live/spend/etc...
Also, what does climate change have to do with any of this? Attempting to use climate change, or the latest hot topic from FB, Twitter, etc. to then try to change everyone else's opinion (like you solved the puzzle of life, and not simply stumbled on something that is trending) is tiring and a bit ridiculous. NOTHING in life is this simple, including the market. I would say the markets are heavily pinned to sentiment, or more simply put how the majority of people feel about it.
Absolutely, "let the market be", and this is the choice people are making when they invest in something. People usually don't invest in X and say "okay, now rewrite the rules of the world for me because I think X is not the best place for money. I don't care about anyone else, people who invested in X need to immediately re-prioritize because I feel Y is more important than X and everyone else needs to think the same as well" Isn't this fascism? Is this really the world we want to live in?
You make your opinion on the market "heard" by taking part (investing) or not taking part (not investing), it's literally that simple.
If you want to invest in climate change, go for it - no one is saying not to, but on the flip side, you are inferring that everyone should NOT invest in DOGE so more money can go to climate change? I don't quite understand what the point here is.
"Investing" in Dogecoin is gambling, and I don't have a fundamental problem with legal gambling, so... I'm not sure what "we" are supposed to do about this.
As far as the market value, it's obviously nonsense because once a substantial number of people started to convert back to fiat, there would probably be a panic and the price would plummet.
It's the other way around, Doge being worth more than Ford and Twitter is just the billionth datapoint which tells you this is the world we live in.
If you somehow managed to miss all the others, this one is your opportunity to surrender to this fact. You got to take your opinion, blindfold it, load it in a truck and put a couple of bullets in the back of its head.
Accept that your opinion is worth nothing it and start betting on people's opinions.
Like should we be going out and voting for people who aren't incompetent leaders? That's not an option because by and large the people who want to be elected are puppets or sociopath. What do you suggest?
And what's doubly ironic is that it's arguably more useful as actual currency than more serious efforts like Bitcoin, given the faster transactions, bigger money supply, and lack of a hard cap (meaning said money supply can continue to grow indefinitely, giving it some chance of keeping up with global economic growth).
Still not perfect, though; proof-of-work seems like a dead end to me for a globally-useful currency, given the high energy costs (scrypt might help here, but IMO it's just postponing the inevitable). Proof-of-stake (or something else not dependent on burning so much energy on solving math problems over and over again ad infinitum) seems like the next step.
[+] [-] aazaa|4 years ago|reply
[+] [-] tbwriting|4 years ago|reply
Is that really the world you want to live in?
Think about the other side of the coin: if the market is undervaluing something truly important in the long term like fighting climate change, do we really want to throw our hands up and say “them’s the rules, let the market be”?
[+] [-] jfengel|4 years ago|reply
The way market cap is calculated can be misleading. It takes the price of the last sale and multiplies it by every object. There's no reason to think that the second one would sell for the same amount, especially for an object with artificial scarcity like a cryptocurrency. (It's true for a company as well, but to a far lesser degree.)
That's not to say that this isn't really dumb. Cryptocurrencies aren't even really artificially scarce: the whole joke of Dogecoin is that you can just make them up on the spot as a gag. The fact that a ton of energy is being wasted on all of this makes the joke rather unfunny.
As for what to do about it... I'd rather not throw my hands up about it, but I will say that it's not simple to fix.
[+] [-] decideimportant|4 years ago|reply
If you don't want to invest in something, don't. You shouldn't (and likely don't want) some other person or entity deciding what is best for you/family, so perhaps we should stop freaking out about things and/or telling other people how to live/spend/etc...
Also, what does climate change have to do with any of this? Attempting to use climate change, or the latest hot topic from FB, Twitter, etc. to then try to change everyone else's opinion (like you solved the puzzle of life, and not simply stumbled on something that is trending) is tiring and a bit ridiculous. NOTHING in life is this simple, including the market. I would say the markets are heavily pinned to sentiment, or more simply put how the majority of people feel about it.
Absolutely, "let the market be", and this is the choice people are making when they invest in something. People usually don't invest in X and say "okay, now rewrite the rules of the world for me because I think X is not the best place for money. I don't care about anyone else, people who invested in X need to immediately re-prioritize because I feel Y is more important than X and everyone else needs to think the same as well" Isn't this fascism? Is this really the world we want to live in?
You make your opinion on the market "heard" by taking part (investing) or not taking part (not investing), it's literally that simple.
If you want to invest in climate change, go for it - no one is saying not to, but on the flip side, you are inferring that everyone should NOT invest in DOGE so more money can go to climate change? I don't quite understand what the point here is.
[+] [-] smt88|4 years ago|reply
As far as the market value, it's obviously nonsense because once a substantial number of people started to convert back to fiat, there would probably be a panic and the price would plummet.
[+] [-] ObserverNeutral|4 years ago|reply
It's the other way around, Doge being worth more than Ford and Twitter is just the billionth datapoint which tells you this is the world we live in.
If you somehow managed to miss all the others, this one is your opportunity to surrender to this fact. You got to take your opinion, blindfold it, load it in a truck and put a couple of bullets in the back of its head.
Accept that your opinion is worth nothing it and start betting on people's opinions.
That's how you make money
[+] [-] tbwriting|4 years ago|reply
[+] [-] trash3|4 years ago|reply
[+] [-] yrgulation|4 years ago|reply
In this order.
Some will get hurt while he’ll earn tons of FIAT.
[+] [-] Tenoke|4 years ago|reply
Similar to how he memes without direct profit all the time and how he is mining at loss just as a fun home project.
[+] [-] practicalpants|4 years ago|reply
[+] [-] banbanbang|4 years ago|reply
[deleted]
[+] [-] austincheney|4 years ago|reply
[+] [-] yellowapple|4 years ago|reply
Still not perfect, though; proof-of-work seems like a dead end to me for a globally-useful currency, given the high energy costs (scrypt might help here, but IMO it's just postponing the inevitable). Proof-of-stake (or something else not dependent on burning so much energy on solving math problems over and over again ad infinitum) seems like the next step.
[+] [-] unknown|4 years ago|reply
[deleted]
[+] [-] RcouF1uZ4gsC|4 years ago|reply
Maybe a lot of people will read the news and see Dodgecoin as a great deal.
[+] [-] Aeronwen|4 years ago|reply
[+] [-] vgeek|4 years ago|reply
[+] [-] rasputnik6502|4 years ago|reply