Dogecoin is Skyrocketing – A Warning to all Investors!

What if you have invested a thousand dollars
in cryptocurrencies around five years ago, that's not that long ago, a year before the
2017 crash. How much your thousand dollars would worth today?
A thousand dollars in bitcoin in 2016 would worth around $148K. That is an insane rate
of return. Stock market investors can't even dream about that kind of return. How about
Ethereum? How much would a 1K dollar invested in Ethereum worth today? 
$273,716. Can you imagine that a 5K dollar invested
in Ethereum 5 years ago would have turned you into a millionaire today.

That's insane
if you ask me. What could be better than that?
I am gonna tell you what is better than that! Dogecoin?

 I can't believe what I am about to tell you
because it sounds like a joke because it suppose to be a joke but its not! Dogecoin has grown
so much that 1K dollars invested in 2016 would have turned to over a million dollars today.
Instead of buying that brand new iPhone 7 in 2016, you could have purchased a dogecoin
for the same amount of money, and today you could have called yourself a millionaire.
Did your iPhone earn a million dollars since then? I don't think so?

 Let's get back to reality.

There is no point
in looking back and regretting because it's life and opportunities come and go. But the
fact is, we are in the middle of a technological revolution that's has the potential not to
change the financial system but pretty much everything else. If in 2017, it seemed impossible,
today it seems like we are at that point of no return, especially when a crypto company
finally went public.  

Just a year ago, it was impossible to imagine that we will have a crypto platform going
public on the Nasdaq. For a long time, bitcoin or cryptos were considered this little asset
used only for undercover activities. Going mainstream was something not so easy to imagine,
especially since the 2017 crash where a lot of people lost fortunes investing in bitcoin
and stayed pretty much away from it.

Coinbase is America's largest cryptocurrency exchange
platform where you can buy, sell different kinds of cryptocurrencies, but besides that,
they offer online wallets, or you can loan your bitcoin to them and earn interest like
you would with USD with traditional banks and a bunch of other services. But of course,
their main source of revenue comes from transaction fees whenever you buy or sell crypto.

 

Coinbases stock spiked on the first day to the point where the company was valued at
over 100 billion dollars for a brief moment. That's a great start for a company that trades
such volatile assets as bitcoin.  

One of the biggest Coinbase investors is Ark Invest. Cathie woods, the woman who believes
so deeply in Tesla, her prediction that Tesla would worth trillions once its self-driving
technology is ready. She, Also predicts that it's just the beginning for Coinbase, and
it will only grow. No wonder why ARK invested 64 million dollars in Coinbase. 
Coinbase is making trading bitcoin and other cryptocurrencies easy and simple. The company
has around 56 million "verified users" so far.

If we want bitcoin to be mainstream,
it should be easy to use and pass government regulations.
But on the other hand, transaction fees are a bit too high, which is against what bitcoin
was made for initially. Because the point of bitcoin was to create
a decentralized system where everyone can send or receive money anonymously without
the middleman, and Coinbase is literally that middle man, a bank for cryptos.
Even your online wallet is like a bank account. I am not trying to criticize Coinbase. I am
just saying how technology has evolved over time.
Of course, you send your bitcoins from an online wallet to your cold wallet and keep
them safe and secure from online wallets. We actually made an entire video explaining
how to buy bitcoins, how to store them, and the pros and cons of using an online wallet.
And what is the safest way to store your bitcoins? The link will be in the description.

 

But you know, what's more fascinating than that is the fact that Dogecoin soared to a
record high by more than 400 percent.

I still can't get my head around it. Literally, what
started as a meme is now worth billions of dollars. 

 Dogecoin started as a joke, like an internet
meme. It was never meant to be anything serious, but Dogecoin's capitalization crossed 5 billion
dollars by the end of January. Imagine you create a meme, and then that meme
turns into 5 billion dollars. That's probably the most expensive meme in the world. And
then the world's richest person keeps twitting about it till it grows to dozens of billions
of dollars, and in the last few days, dogecoin capitalization crossed 52 billion dollars.
Honestly, I am shocked! 

It seems so unreal that I just can't believe it, but whether I like it or not, it doesn't
matter. That's what's happening. These are the facts on the ground.
I think the excitement around coin bases IPO drove so many new investors to buy different
kinds of cryptocurrencies that it inflated the entire market Even more.

Even bitcoin
is trading at around 64K dollars at the time f this script. 

 Whatever is happening to crypto now is definitely
not sustainable. We have already talked in a previous video about why the entire market,
including cryptos, will most likely experience a correction or a crash . Because right now,
we are in that situation where trillions are pumped into the economy, and the fed knows
that if it stops pumping so much money into the economy, the economic machine could stop,
and reloading the economy is much more difficult and expensive than keeping it rolling at the
expense of inflation. So the fed is watching from a side to raise interest rates and stop
that inflation whenever it seems like we are back on track and there is no fear of another
covid cases spike. 

That doesn't mean that crypto will crash to zero, and that's the end of bitcoin.

The IPO
of Coinbase is clear evidence that from now onwards, crypto will just keep growing, but
like any other technology, it's still at its initial phase. Some enthusiasts think that
bitcoin is at its peak, and I disagree with that, I think we need another 10 or 15 years
to see the real fruits of blockchain and cryptocurrencies, and before that happens, the technology is
going to go through a lot of volatility. That could mean many more crashes, it could mean
a lot of more spikes, but as the demand grows, the trend is definitely going to be upwards.

 The fact that there is a limited number of
bitcoins, for example, already means that we can't adjust the supply based on demand.
More demand, while there is a limited supply, means higher prices. That's basic economics. 

 But the fact that we have so many cryptocurrencies
that are coming out and are valued at insane valuations is similar to what happened back
with the internet, where we had websites such as pets.com that also had insane valuation.
Not to say that Dogecoin is going to fail or anything similar to that.

Online time will
tell you, 

However, often when a small crash happens to an asset that's not stable, such as cryptocurrencies,
they can shake the market pretty hard and cause a snowball effect where it will scare
off investors, and prices will plummet much more than they should.

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