Show notes
Our hosts David and Phil Ngo take Episode 14 to explain Dogecoin as it gains 500% in value within the last 7 days. Elon Musk keeps talking about it, retail traders keep mentioning it. We felt this episode would be good to give you a basic background on what it is and two very different perspectives on it.Phil explains how it technically came about as a "fork" of other blockchains (3:12). David gives a historical perspective on Dogecoin, its pricing and usage (3:48). David gives us some parameters of how the Dogecoin protocol operates and its coin inflation (6:47). Phil explains how Dogecoin's protocol operation doesn't fit the "scarcity" property of what sound money should be (7:58). Phil describes how this Dogecoin bull run is very similar to the momentum of retail "social media" traders and what happened to Gamestop (11:10). David explains the concept of a "pump and dump" which has a lot of similarities to what is happening with the DOGE price (12:45). David explains his reasoning as to why momentum trading has its merits to make money (15:54). Phil explains a common flaw of investors looking at absolute price numbers without taking into account other factors (17:38). David reiterates the importance of perceived value and what people want to believe in and where they want to put their money (19:56). Phil explains his reasoning as to why he doesn't think it is fundamentally sound to put money into Dogecoin (21:32). We explain coin circulating supply and identify a Dogecoin wallet that holds 28.4% of the supply (23:33). Phil does acknowledge the popularity of its brand and has some future potential of utility if certain things are done, but unlikely to succeed as an investment (28:06). Shownotes:Largest Dogecoin Wallet Holder: https://bitinfocharts.com/dogecoin/address/DH5yaieqoZN36fDVciNyRueRGvGLR3mr7LFollow Us and Subscribe: www.ngoyourpotential.com
