Meme coins have been a hot topic and brought unexpected events in 2021 for crypto. Most people were bullish on Bitcoin and Ethereum, but many had no clue about the future of Dogecoin. Now, even Elon Musk is asking in a tweet whether people should be able to buy Teslas with Dogecoin.
How serious is Elon Musk? It might seem like a joke now, but Dallas Mavericks owner Mark Cubans now accepts Dogecoin as payment for purchasing tickets and merchandise. And given that you can purchase a Tesla with Bitcoin – who knows what could happen? The only problem is if Musk sees Dogecoin as a safe form of payment to accept which is unlikely.
Recently, in a Cointelegraph article, one of the lawyers defending victims of the Bernie Madoff Ponzie scheme warns all potential Dogecoin and memecoin investors. He essentially says that Dogecoin and all other memecoins are scams that will see you lose your money. It is likely though that a guy like Elon Musk is well informed about the risks of owning Dogecoin and would likely not hold a large amount of it.
How long will meme season last?
There are many other meme coins besides Dogecoin that have blasted off to Mars this year. Meme coin Shiba Inu is up 37294.1% just since last month. Investors in Shiba Inu no doubt have made a fortune, but that doesn’t mean anyone should go out and buy these coins. Think of it like this – if cryptocurrencies are the highest risk assets in the world right now, then meme coins are the riskiest of all cryptos. You see momentous gains in these coins, but just like there can be massive gains there is huge risk of getting wrecked.
It’s important to recognize that meme season is a bubble and it can only last for so long. All trends and phases come to an end, yet at the same time people are entering into many meme coins right now it seems more than ever. This could mean that we see an extended meme season, or it could mean we’re at the extreme hype phase right before it crashes. There is really no telling how long it’s going to last. Dogecoin and all other meme coins have no value proposition.
Laughs from meme season
One has to admit, this is quite a humorous situation the crypto industry has found itself in. Most didn’t expect that the market would be so concentrated by meme coins this year. It’s also an interesting moment for the history of markets. For the first time a coin like Doge can have a market cap worth tens of billions. It’s reforming what the defiition of a company or business is. Usually we think of a company as a service of some kind. Yet, Dogecoin as a “company” does not do anything at all.
Final thoughts
Right now NFTs and meme coins have stolen the spotlight while both, Ethereum and Bitcoin, have also seen massive gains in 2021. What is the next phase in crypto? It is impossible to tell.
This article is not financial advice. Please do your own research when investing in cryptocurrencies.
Aaron is passionate about blockchain and has been an investor in cryptocurrencies for the past years. He enjoys engaging with other people in the cryptocurrency community online, particularly on Telegram, and learning from experts.
