No, I don't think Dogecoin makes a mockery of cryptocurrency any more than GameStop (GME) did for stocks or one of any number of microcap or Chinese unknowns that ran thousands of percentage points in a short time.
What I don't like is seeing the continued trend of traders, whether in stocks or in crypto, acting like an alcohol-rage filled gambler on a weekend bender sitting at a blackjack table screaming, "Hit me!" while showing 19 against a dealer's 6. Unfortunately, Elon Musk, among others, is standing behind them feeding them drinks and encouraging them.
It's not just Musk. So many celebrities and influencers have turned to social media to push their agenda. It seldom comes with rationality and never with analysis. If I see one more TikTok about making $1 million or 10,000% I'm going to be sick.
"If you put $1000 into Dogecoin when it was $0.005..."
We can do that with any number of investments and come to similar conclusions. It's called hindsight and it's essentially worthless. And for the record, I hate it just as much when it is done with stocks. Does anyone really care how much your Apple (AAPL) shares would be worth today had you bought them 30 years ago? The answer is: No. No we don't, because it doesn't help anyone now. If the purpose of those articles is to encourage buy-and-hold, then we need to discuss drawdowns along the way and talk about another 50 names from the same period and how those performed.
I've noticed the SpaceX Doge-mission getting a lot of attention as well. That announcement conveniently timed post-Saturday Night Live and after Dogecoin was smacked down, but I digress. My concern around this mission isn't SpaceX or the P.T. Barnum tie-in with Dogecoin, but the company SpaceX selected for the other side of the deal. The company's website spends more time on its 11 employees, profiling each one, than it does discussing its business. And the bios of those employees sounds like they were written by The Onion. I'm all for a little creativity, but I think they strayed a little too far.
Perhaps the biggest rub is watching worthless companies soar to huge valuations or Dogecoin approach $100 billion in market cap or seeing Shiba Inu coin hit $5 billion plus... while knowing that companies pursuing clean tech or cancer cures or health and wellness are struggling to raise money.
In my view, we need these games to stop. There are stupid amounts of money, millions and billions, hitting on 19, hoping for 21. We've had far too many twos hit over the last year. I worry that we are going to see a lot of folks go bust here soon rather than gathering up at least some of their winning chips and adopting a more seasoned approach.