A Long and Short Journey with Dogecoin
Something something, I am not a financial advisor and am not giving financial advice.
Everyone is talking about Dogecoin in the last few days. I’m not sure why exactly, there are a thousand different Crypto Currencies out there and DOGE isn’t new. Personally, I do not follow Cryptocurrency at all. It really feels like it’s just a digital MLM scam. Sure, people are making money but the long term use and sustainability isn’t going to last. People like it now because it’s all “deregulated” but at some point, if it ever became big enough to be mainstream, it’s going to become regulated, which would kill the appeal. It doesn’t help that your regular everyday person has no idea what Crypto even is. The best quote for “what is crypto” I’ve seen floating around…
“Imagine if keeping your car idling 24/7 produced solved sudokus you could trade for heroin.”
One of the most common points I see is that “Crypto is just as real as the dollar (or any other currency).” This is of course because the dollar is “worth” what it is “only because the US government says it is”. Which honestly is kind of a misrepresentation of why a dollar is worth a dollar, but ok, lets go with that. Dogecoin, or any crypto, is “worth” something, because a bunch of speculators trying to get rich quick and not be holding the bag when everything collapses say it is worth something. The Dollar is worth something because the entire economy of the US, and a lot of the world, and the Government, backed by it’s people and an army and a general long term trust, says it’s worth something. So technically the original statement is true, but in reality, the level of backing on the dollar is much larger than that of a bunch of random kooks online.
Anyway…
Back in 2014, Dogecoin got big on Reddit. It was literally just a meme making fun of Bitcoin and people were using it as a sort of upvote/award system with Dogetipbot. Which was fun. I bought around 5000 DOGE for around $5. I got some tips, I gave some tips, eventually I stuck in all in a local wallet and I think the Dogetipbot broke so the whole thing kind of gotten forgotten about.
Then, this year, for some reason, Dogecoin started booming. Fortunately I had my old wallet. Unfortunately, syncing the last 7 years of blockchain takes a long time. It took something like a month to get my wallet in a usable state, and the software felt really buggy, requiring many restarts to kickstart the sync. Suddenly my 5000 DOGE was “worth” about $1500. I admit I got a little caught up and figured, I’d see how far it would go. Everyone says they want to take it to a dollar per DOGE. Let’s see if that happens.
I could see the hype taking it to a dollar. I really can’t see it every getting to Bitcoin levels of thousands. At the very minimum, it would take long enough that by the time it happens, the Governments of the world would have started regulating crypto to the point where it all mostly died off anyway. DOGE kept climbing, fifty cents, sixty cents, seventy-five cents. At some point, I decided that if it managed to reach a dollar, I’d go ahead and buy myself a new PC. I’ve been considering updating my desktop, some of the components are around ten years old (the Processor specifically), and what better to spend my sudden surge of fake money on. I also decided to buy a pre-build machine. The main thing keeping me from working towards an upgrade was how hard components are starting to be to acquire, a lot thanks (no thanks) to crypto mining.
I found I could buy directly from NewEgg using BitPay, so I prepped up half my DOGE into a Bitpay wallet. When it got up to seventy-five cents I was really close to just going ahead and pulling the trigger. I got to a point where I cared more about my PC upgrade than the DOGE. I even dumped a bit more into my BitPay, ready to use. I also figured I should pull the trigger at eighty or ninety cents, since it seemed like a lot of people were planning to dump at $1.
But then I saw news about Elon Musk going on SNL, and being a mechanism to propel DOGE to $1. I’m not a fan of Elon Musk at all, for reasons I’m not getting into here, but I figure if anyone can make this go up, it’s probably Elon Musk. So the decision was made to just wait for SNL.
Then Elon was on SNL, and DOGE dropped from $0.70 to around $0.50. It seems to have leveled off around this point as well, even dropping a bit at times. At this point, I had to remind myself, that I am not a “cyrpto guy” and I have no interest in becoming a “crypto guy”. This was just a dumb meme that I had jumped on years ago.
Long story short, I dumped the rest of my DOGE into BitPay, and ordered up a new kick ass gaming desktop PC.
I am now super looking forward to running games in blazing FPS with RTX and all the Ultra Super Graphical bells and whistles. In the meantime I’ve got to work on shuffling some files around to make everything work once the new desktop arrives. I currently run two desktops, one is my “main PC” and the other is an old 32bit Linux PC that mostly serves as a file server and a web project server. I don’t need to run 3 PCs and the 32bit PC has been a thorn in my side for a while with it’s 32bit limitations, so I plan to shift my current main desktop to be the new Project server and dump the old Linux machine. I look forward to being able to actually host a sweet Minecraft server and OpenSIM server and getting the chance to better learn how to use Docker.