Dogecoin Is Out Of Control

what's up steph and it's graham here and on july 20th 2020 at 6 50 p.m i bought 217 391 dogecoin at a price of 0.0046 cents a piece for a total of a 1 000 investment well today the time i'm making this video that one thousand dollar investment has turned into eighty nine thousand one hundred and thirty dollars and thirty one cents if i didn't sell it nine months ago i'll be right back [Music] all right so now that i've washed away my tears there's literally no way i can make a video today and not talk about the insanity that's dogecoin the cryptocurrency that was originally created as a joke but now it's popped into the fifth largest cryptocurrency by market cap increasing in price 700 in the last week so obviously now everyone wants to know what is dogecoin why did it start off as a joke why is it going up so much in price how high could it go is this sustainable and how could i dry all my wet clothes when i don't have a dryer yet in the house there's so much to talk about there's so little time but before we do that i need to tell you about brad he jokingly said that he would smash the like button if i paid him five dollars i mean seriously who does he think he is that i would actually pay him five dollars did the like button so i asked for his venmo i sent them five dollars and he annihilated that like button as promised that is how seriously i take the like button so if you wouldn't mind destroying it for the youtube algorithm it would help me out a ton plus my birthday is coming up on thursday so if you wouldn't mind just giving it a quick tap as an early birthday present that would mean the world to me so thank you guys so much with that said let's begin all right so before we talk about why this is pumping harder than arnold schwarzenegger at the gym we gotta talk about exactly what dogecoin is and how this has become one of the most brilliant concepts to introduce people to cryptocurrency which by the way if you're already a crypto expert and you want to skip a bit of the background information just go to this timestamp right here but i highly recommend you guys just watch it all the way through because you might end up learning something you didn't already know so to start this off when most people hear dogecoin usually the first thing that comes to mind is wait a second wasn't that created as a joke and the truth of that is yes it was actually started off as a joke in 2013 jackson palmer who is a product manager at adobe began making light of the whole cryptocurrency infatuation by tweeting about his own non-existent currency venture dogecoin back then he had no intention of actually creating anything but to his surprise people began retweeting his posts and giving him positive feedback to start taking this joke a little bit more seriously so he said one night after work i sat down with a beer i had too much time on my hands and i bought dogecoin.com then i photoshopped the logo onto the coin and put it up there shortly after that it was picked up on reddit where it caught the attention of the software developer bill marcus who reached out for permission to actually build out dogecoin into a fully functional currency well two weeks after the coin was launched in december of 2013 the price skyrocketed 300 through a combination of viral press and china forbidding the trading of bitcoin and from there dogecoin really took on a life of its own it started off small with users on reddit being able to tip each other in bitcoin along with some mobile games allowing in-app purchases but what made this one so unique wasn't so much its functionality but the fact that it was designed around a doge meme and with the virality of meme culture in 2014 the trading volume of dogecoin briefly surpassed every other cryptocurrency including bitcoin the appeal was that it was just a light-hearted cryptocurrency it wasn't meant to be taken too seriously it wasn't intimidating and it made people feel comfortable about immersing themselves in the entire world of cryptocurrency without the seriousness of everything else now since then the following around dogecoin has continued to grow and in 2018 robin hood began allowing dogecoin to be bought and sold for free on their platform giving it significantly more exposure it was even further popularized when elon musk began tweeting about it causing the price to skyrocket within minutes but now it's taken on a life of its own and at the time of making this video its market cap has surpassed 50 billion dollars which is 500 higher than when i first talked about this two months ago so the first question we have to answer is what happened and what's causing this well usually you would think that it was because elon musk tweets about it on april 1st saying that he was going to put a literal dogecoin on the literal moon and yeah of course stuff like that certainly helps the price of dogecoin but that's not the entire story for the last two months dogecoin has really found its resting spot between five and seven cents where it mainly trades back and forth on robinhood however over the last week the market of pretty much everything started going up the stock market hit its all-time high and alongside with it bitcoin and ethereum started hitting their record highs as well generally when that happens other cryptocurrencies benefit from that type of exposure and dogecoin was certainly a recipient of that as dogecoin began increasing to 89 cents elon musk right on time tweeted out a cryptic message to the moon which many people interpreted as a bullish sign for dogecoin pushing the price even higher but then on april 13th there was a turning point from an old childhood snack that i have not eaten in well over a decade and that would be slim jim yep those little snacks that meat your parents used to put in your lunchbox has now become a small catalyst that helped push dogecoin into orbit increasing their market cap by billions of dollars i'm not even joking i couldn't even make this stuff up if i tried on april 13th right before the meteoric rise of dogecoin they tweeted you're ready to go to the moon together one week to go we launch doge slim jim on 4 20. let's take doing only good every day higher hashtag dojax slim jim rise and spread the word rock emoji shortly after that kronos announced that they had purchased 600 million dogecoin cash with plans to release a limited edition air purifier named air doge that could be bought with you guessed it dogecoin on top of that there was also the public listing of coinbase which opened at a 100 billion valuation legitimizing the entire business of cryptocurrency to wall street and paving a very clear path that not only cryptocurrency is here to stay but it's also going to be a very big driver of the markets in the future the coinbase ipo really just gave a giant spotlight of exposure to all cryptocurrency in general so it would make sense that dogecoin would be benefiting from some of this enthusiasm but now dogecoin has become its own self-fulfilling prophecy as the price goes higher it gets more mainstream attention and the more mainstream attention it gets the higher the price goes which means it gets more mainstream attention which drives the price even higher in fact demand was so strong that robin had suffered another outage and temporarily halted the trading of cryptocurrency on their platform until it was restored which by the way if you want to check out a free brokerage which doesn't route your order flow feel free to check out public down below in the description and when you sign up using that link they'll give you a free stock of your choice worth all the way up to 50 plus i'm posting all of my stock trades on there so if you want to check them out let me know what you think okay but back to dogecoin now let's take a step back and talk about this from the perspective of an investment because as fun as this is to watch and be a part of i'm sure everyone just wants to know how high can this thing go well that's something kind of difficult to answer because initially it was never developed to be something that would have actual intrinsic value it was created from the open source software project litecoin which just means there's no limit to the number of coins which could be mined for example with bitcoin there's only ever going to be 21 million bitcoins in existence and that's it but with dogecoin 10 000 new coins are mined every single minute meaning this is an inflationary currency that's designed to be worth less over time with the hope that that would encourage people to actually go and use and spend it even the founders who created dogecoin in the first place are totally perplexed by its popularity the co-founder jackson palmer left the dogecoin team in 2015 and said in an interview with no media plans for development it looks like the coin will slowly become stagnant in the future the circulating supply of dogecoin is astronomical which will deter the price of the cryptocurrency from rising any further the creators are also quoted as saying that they don't own any dogecoin themselves although a while ago bill marcus said he used all of his dogecoin to go and buy a honda civic as far as what he thinks about all of this he said to the wall street journal the idea of dogecoin being worth 8 cents is the same as gamestop being worth 325 it doesn't make sense it's super absurd the coin design was absurd now even though the creators are not as enthusiastic about it as elon musk is and it was never designed to be something that would actually be successful you still have to go and ask yourself why is it then that everyone is piling into dogecoin using it in their marketing sending it to the literal moon and otherwise turning it from a joke into something that may very well be used as a legitimate currency one day and also why haven't you yet gotten your free stock worth all the way up to 50 down below in the description well i think part of its success was due to the fact that it was never trying to be anything in the first place and people felt comfortable using and adopting it because there was really no ulterior motive it wasn't like the creators made this from an offshore shell company in the cayman islands while they secretly tried to pump it up and cash out from their mega yacht while sailing international waters it was just two normal guys goofing around trying to do something for fun without the intention of trying to turn this into a profit-making machine well unknowingly that created a cryptocurrency that people didn't find intimidating and when it comes to cryptocurrency one of the biggest factors out there that very few people talk about is trust if you don't have trust and faith that what you're buying into is legitimate you're never gonna hold on to it but dogecoin doesn't have that problem people like it because it's funny it's less than 50 cents they know what they're getting and it's not scary for someone just entering the cryptocurrency world but then we have an element to this that wasn't so much expected because of its underground popularity and appeal real mainstream companies began using its virality to begin marketing their products and in the process of doing that they further legitimized this as a currency to eventually be taken seriously like okay slim jim incorporating dogecoin within their marketing could be seen as a way to create relevance and show that they're in on the joke but in the process their success is going to incentivize other businesses to copy that as well and that could end up leading to real mainstream adoption the same thing can also be said about the air doge purifier to me that's just a blatant marketing ploy but i'll admit i like it i don't even care if they're doing this as a publicity stunt i think it's funny and now i'm that much more likely to remember them as a brand because of it i think if other companies are smart about this they would try to capitalize on this as well they might be able to create the mcdoge burger or maybe the doge frappuccino that you could go and buy with of course dogecoin i think we could very well be at a tipping point here where as they see marketing dollar signs they end up legitimizing this as a currency that you could actually use and to me i gotta say that was a bit unexpected i wouldn't even be surprised if tesla one day begins accepting dogecoin for their cars i think it's just a matter of time at this point given how much elon musk has talked about it i think there's also a chance that maybe one day coinbase allows dogecoin to be on their platform or maybe block five finds a way to start giving you interest on your dogecoin holdings but all of that is just speculation and even though it's fun to think about tesla or apple taking dogecoin as payment that hasn't happened yet and it may never happen on a more serious note though it's very clear that throughout the last year the price of dogecoin is not driven by any sort of fundamental analysis or real-world use case but instead the enthusiasm and excitement of an unsuspecting meme combined with the hope of one day making a whole bunch of money from it when you're buying dogecoin what you're really buying into is something that shouldn't be taken too seriously that's just for fun that people trust and if it winds up being something in the future then so be it but i do have to mention a word of caution that just as quickly as it could go up it can and will go back down just as people bought in gamestop at 450 a share and subsequently lost 65 of their investment people will lose money on dogecoin if they don't know what they're doing so my advice is this if you're currently holding on to dogecoin just go and ask yourself the question would you buy dogecoin at the price it's currently trading at if the answer to that is no then the question becomes why are you holding on to it because essentially you not selling is the same thing as you buying in at the price it's currently at ultimately it really just comes down to this you're either going to regret not holding onto it longer or not selling it sooner pick your choice if you sell it and it goes up you'll wish you held on longer but if you didn't sell it and it goes down you'll miss out on guaranteed profit so you'll have to decide that one for yourself but i don't think there's any shame in taking some profits off the table if this is money you cannot afford to lose i've seen pumps like this so many times and i gotta say i don't think i've ever seen something rise like this that doesn't eventually fall back down at some point and who knows maybe it just keeps going up in price but analyze the situation objectively without getting greedy and trying to inch out a little bit more profit and hopefully that will end up helping you come to your own conclusion now as far as my own thoughts on this i wouldn't be surprised if at some point dogecoin begins to establish itself as an actual currency with real-world functionality as it grows in popularity i think it's shown us that people are willing to take a meme very seriously if people have a genuine interest in it and today that's certainly the case i made the argument a few months ago that if mass adoption begins to take place because of its popularity then absolutely it'll continue going up in price and so far to my amazement that's actually been the case but it's still uncertain just how many companies are actually going to adopt it and give it functionality it's still a gamble and if you're looking to invest only invest an amount that you're comfortable with losing i honestly think this will continue to get more and more mainstream attention but in the bigger picture i wouldn't be surprised if we see some rather large price drops along the way so if you're buying in that is what you're signing up for investments like this are entirely dependent around detention and on the internet attention changes day by day so even though it's doing really well right now when all the eyes are on dogecoin the real question becomes what happens when people move on and pay attention to something else instead i'm certainly excited to see how this plays out but just remember be careful play it safe and there's no shame in taking out some profits if you're up a lot of money but to end this one off on a positive note the creators themselves did say that if all we've done with dogecoin is grow awareness in a decentralized currency such as bitcoin then i think we've done a good job because for a lot of people who are using doge now it's their first cryptocurrency that they've ever used and they've started mining they're learning and i think it's great that people actually want to learn about it because it's associated with the doge meme so i'm thankful that there is a playful currency out there without an ulterior motive that gets people interested in learning more about cryptocurrency and that combined with coinbase going public is a sign that we're seeing a big shift in the way people define money and how we should never dismiss something just because it started off as a joke so with that said you guys thank you so much for watching i really appreciate it as always make sure to destroy the like button subscribe button and notification bell also feel free to add me on instagram i posted pretty much daily so if you want to be a part of it there feel free to add me there as on my second channel the gram stefan show i post there every single day i'm not posting here so if you want to see a brand new video for me every single day make sure to add yourself to that and lastly if you guys want a completely free stock worth all the way up to 50 down below in the description feel free to use my link and sign up for public they're completely free stock trading brokerage that doesn't route your order flow and plus they combine the social media aspects so i could post all of my stock trades on there so if you want to be a part of it use that link down below let me know which free stock you get thank you so much for watching and until next time

Channel: Graham Stephan

Views: 689,804

Keywords: investing, investing for beginners, investing in your 20s, how to invest, how to invest in real estate, how to invest in stocks, stock market investing, stock market investing for beginners, stock options, robinhood, robinhood app, best stock trading app, how to be a millionaire, how to be a millionaire in 3 years, credit score, credit score explained, credit card, credit cards for beginners, passive income, how to build wealth, how to build wealth in your 20s, real estate 101

Id: vRECf6f4Wig

Length: 14min 40sec (880 seconds)

Published: Fri Apr 16 2021