Taken at face value, it’s hard not to believe that with the rise of Bitcoin (CCC:BTC-USD), we are at the dawn of a paradigm shift for our economy and our investment infrastructure. The media have been talking about Bitcoin every day for almost two years. Corn Dogecoin (CCC:DOGE-USD)? You might think it’s all about laughing.
But that’s no joke, even though the underlying cryptocurrency started out as one. Of course, the community behind the very coins can be a bit rough around the edges. No one would know better than Dogecoin co-founder Billy Markus. According to a Benzinga report, Markus asked that Twitter (NYSE:TWTR) CEO Jack Dorsey to do something about insanity.
Specifically, Markus complained about Shiba inu (CCC:SHIB-USD) promoters who flood social media comments with numerous links to an alleged SHIB airdrop. Dogecoin co-creator tweeted, “The reason I don’t like Shib is because the community is going out of their way to harass and insult me. It doesn’t make me think well of you or your “community”.
Not only that, Markus also took on some Dogecoin supporters, whom he tagged as donkeys for more PG-appropriate wording. He added that he liked the community “a little less” as a result of juvenile and needlessly offensive actions.
However, the reality about Dogecoin is that it ironically reflects the maturity of the underlying crypto complex. That is, crypto investors no longer just have to invest in serious assets like Bitcoin. Instead, they can choose ridiculous “investments” like DOGE. And there are plenty of others where it comes from.
Still, this raises the question of whether the utter infantility of Dogecoin is a unique crypto phenomenon? Given the delay in US education standards, cryptos could reflect this sad situation.
However, the truth can be even more disturbing.
Dogecoin is Meme-ing Like It Was 1929
If you have a subscription to New York Times, I highly recommend the article by Yale professor Robert Shiller, Back to the first Roaring Twenties. If you don’t think there are parallels between the current market euphoria and the events leading up to the Great Depression, Shiller’s research might convince you otherwise.
But that was in the 1920s, I hear some of you respond. Dogecoin wouldn’t exist for almost another century. Instead, the world was just beginning to grasp the potential of centralized investment platforms.
It is true that the market environment was clearly not as crazy as it is today. But perhaps it was due to the inability to scrutinize the currents of consciousness of others. In fact, Shiller is alluding to the possibility that people back then did not have the same behavior as their modern counterparts.
In February 1929, singer Eddie Cantor had a hit song that went viral titled I Faw Down an ‘Go Boom! The lyrics included powerful lines that would make William Faulkner proud, such as “I got advice to buy stocks, I lost my shirt, I lost my socks.” The minute I buy stocks, they go down and go boom.
Okay, just kidding on the Faulkner part. More importantly, however, social critics of the time castigated inanity. “Have you ever heard of something dumber, more ridiculous, and more stupid in your life?” This joke is positively cuckoo, a bit of gossip that has swept the country ”, lamented the Boston Globe writer Joseph Dineen.
He further added about the viral success that “Every broadcast station was tossing it in the air at least once a night.” You are not going to get that kind of fanfare unless there is a demand for it. This tells me that if Dogecoin existed in the 1920s, it could receive the same glee.
Nothing new under the sun
I bring this up so as not to tickle your brain with a historical parallel, although I’m sure you found the comparison fascinating. Rather, it is to emphasize that there is nothing new under the sun.
Of course, Dogecoin itself is a new “asset” traded in a new investment framework. But while the platform itself is revolutionary, the sentiment behind the valuation is not. We are still dealing with human nature, something which is probably unchanged from the beginning of civilization.
And while I don’t make any predictions, pure speculation has always led to a similar conclusion. This time it might be different. But after reading Shiller’s article – and despite his own optimism – I wouldn’t count on it. At least you want to be prepared for the possibility of a rehearsal.
As of publication date, Josh Enomoto held a LONG position on DOGE and BTC. The opinions expressed in this article are those of the author, submitted to InvestorPlace.com Publication guidelines.
Former senior business analyst for Sony Electronics, Josh Enomoto has helped negotiate major contracts with Fortune Global 500 companies. Over the past several years, he has provided unique and essential information for the investment markets, as well as for various other sectors, including law, construction management and health.