One of the main things that I want to talk about is what the heck is going on with Dogecoin. The Holy Shiba has gone up over 147 percent in the last 24 hours and almost 500 percent in the last week. Is this rally all bark? or is there some bite here? It looks like Toshiba's mouth is watering, but at the same time is there something very sinister going on behind the surface? A lot of people are making the case that this means that we're going to have a huge crypto crash because Dogecoin is running. Should we be concerned? What is it that we need to watch out for and why the heck is it running? Should you buy the Holy Shiba Coin? Is this a warning that Crypto has gotten out of hand and we're going to have a crypto crash? And what does that mean for our Bitcoin and Bitcoin Mining plays well in this video.

We're going to be talking about all of that. Then on Sunday's video, we're going to return back and talk about clove. Our clove play popped up massively today for a second time, and we'll be discussing what this means in terms of when the hedge funds are finally going to stop reaping rewards off the backs of individual retail traders. And the only thing I ask in return for all of this is that you hit that ravishing like button and also don't forget to subscribe.

Okay, so Dogecoin, Doggy Coin or Doj coin, which is the fancy way of pronouncing it. Let me give you 15 seconds of context. So back in 2013, Dogecoin was created as a joke to make fun of cryptocurrencies and the controversies with them, but it operates on a similar, decentralized blockchain network to that of Bitcoin. Only major surface level difference is that, of course, Dogecoin has a Shiba on it and prides itself as more of a meme than it does a global money disrupter.

Yet, it's still been disruptive in many other ways at highs. Today, Dogecoin's total market cap was about 56 billion, basically valuing a meme Sheba coin at the same market cap as Revolutionary Electric Vehicle Company Neo, which I could argue. there's two separate valuation issues here, but we're not going to get into that in this video. But in a list of cryptocurrencies, Dogecoin has earned a spot at number six as of right now.

But you look at the volume traded in the last 24 hours and it's right smack behind Bitcoin, which is wild Now coming from a stock market perspective, all the time, we have companies that have no reason to really run, but people pour money into them and they go up three four hundred percent. But the difference is that when it comes to companies, there's some frequent checks. For example, companies have quarterly earnings reports, and if they don't perform like investors, had thought, well, that stock price is often going to get beat down, even if people had rallied it up in the short term. But with a cryptocurrency, there's no frequent checks, the value is just based on how many people are going to buy it.

That means that it's purely a crowd asset. The crowd decides what the value is worth. It has no value outside of what the crowd thinks, and that's true for most cryptocurrencies. But this is really highlighting that the value of a crypto asset is solely based around the attention, whether joking or not.

as long as that attention gets people to buy, trade, or hold that asset. And the more that that attention translates into people buying a currency, the more incentive there is to mine for it. And the more people mine, the stronger the network becomes. and the stronger the network becomes.

The more people buy that currency with blockchain technology. Whether you were buying Nft artwork like a crypto kitty or a tweet, or whether you're buying a cryptocurrency, the reason people are buying these are because other people are buying these and as they pop, they attract more and more people to buy these. But let's be real: the reason that Dogecoin has gone so viral is because it's become so incredibly lucrative for people buying it. Whether it makes sense or not, people aren't just buying it because it's a joke.

People are chasing this as a shiny object, and I think there's two stages to this. There's this concept called the greater Full Theory that explains what's happening right now. I'm not calling anybody a fool if they're buying Dogecoin, because again, you can ride and scale up the asset. But this is what the theory is called.

People who first start by buying a speculative asset class like Dogecoin are employing a Greater Full theory. Buyers feel there's always going to be a greater full after them that they can then sell it to at a higher price down the line. When they are done. that way, they don't actually have to believe in the cryptocurrency.

They just buy it because they're very confident that a greater fool is going to buy it down the line. So thus, they're smart and not a fool. In other words, you may not believe in the Holy Shiba, but you do believe that somebody else is going to believe in it more than you do. And as people continue to buy in, expecting a greater fool to pump it up to the next level, more people pour in and it becomes even more powerful.

But see, the thing is on a macro level. the massive increase in demand is actually creating a legitimately stronger network for Dogecoin and a stronger reason to buy it outside of its meme slash joke value. When Dogecoin gets so much money flowing in and out of it that it develops such a strong history of being a positive speculation asset. that means that it rewards holders who just hold through volatility instead of just sort of playing the rides.

What happens when you get more stability because people think, hey, okay, well if I don't know how to play exactly the ups and the downs, well, I'll just buy it after a crash and I'll just hold it. And what does that mean? Well, that means you get higher and higher bottoms. People buy in and they wait until a celebrity or some influencer goes and pumps it up. So even if you don't think the Dogecoin is just going to keep going up and never crashing, it's very likely that we're going to keep having these higher bottoms over the years.

Charlie, that sounds like a bullish case for Dogecoin. Are you saying that we should buy Dogecoin? Well, I don't have a doctorate in Doge. I think that you can make a good argument for buying it at each higher bottom. but for me, that's just.

that's not my focus. But what the rise of Dogecoin does tell me is that speculators have gotten tired. tired of the returns for buying more? I guess blue chip cryptocurrencies like Bitcoin, Ethereum, and the likes of that hasn't given enough risk or reward to them, And a lot of people are comparing this to how Gamestop, Amc, and a handful of other Wall Street bet stocks really took off back in February before the rest of the high growth sector tanked back then. when everybody felt that putting money into growth stocks wasn't giving them that same satisfaction.

For returns, they jumped on much, much more speculative assets or cult assets like Gamestop and Amc. And look, obviously, I know all of us have dabbled in different asset classes, and it's I'm not trying to say bad things about anybody, but what I'm trying to say though is that when everybody does this on a massive scale, it destabilizes the overall market. And I think that the argument that's been made by a lot of people right now is that the rise in Dogecoin is telling us that crypto investors are feeling that at these prices, they are more likely to find short-term returns in Dogecoin. They prefer Dogecoin over Bitcoin.

And if enough of the short-term speculation class thinks that a lot of people are arguing that you could see a massive short-term cycle out of Bitcoin, especially when you consider some of the bad headlines in terms of banning it in Turkey and some other countries, people aren't getting those flashy returns. They may dump these big cryptocurrencies in mass and head into some more speculative ones. They're thinking that this Dogecoin rally could be the straw that breaks the crypto market's backs, just like Gamestop and Amc were thought of as the straw that broke, well, high Growth Stocks backs. But again, the reason I'm saying other people are saying is because that's not my argument.

I think these are completely different scenarios. The reason that high growth stocks really cooled off is because a lot of hedge funds over leverage themselves. So eventually if there's some weakness, hedge funds are going to get margin called, and then more hedge funds are going to get margin called, screwing with yields on the other end of bonds, and then some hedge funds are going to take advantage of it by shorting the overall sector and rotating around the market in a way to screw a lot of the little people. But I think that with Bitcoin, the reason that it's up so much is because institutions are adopting it.

It's getting institutionalized, not margin cold. I don't think that Dogecoin's rally and Bitcoin are really that connected, even though the media is making it seem like they are, could be wrong. Obviously, you could always be wrong when it comes to macroeconomic events, but I think that we are dealing with two different scenarios. I don't think the rise of Dogecoin and the eventual fall of Dogecoin is going to tank Bitcoin, but I think that it's still an important lesson.

Eventually, we will have something that takes Bitcoin more likely. Maybe it's regulatory concerns? Maybe they just have their regular cycle. So this is what I would say, and this is what I would do instead of constantly fearing a crash. Why not just treat every dip as if it was going to be the big one? Buying each dip, growing your conviction, and then having a long-term outlook for locking in profits during uptrends.

If you want to sort of build out your margin margin for error or not margin in terms of loans, the more profit you lock in, the more you can withstand the downtrends and still come out on top. But over the long run, the idea is that if you can keep averaging in during dips and you're right about the overall outlook, well, you'll do well. And that's in terms of Mara Riot and Bitcoin. Anyways, folks, if you have any questions, feel free to reach out to us below or join us on Ziptrader Circle.

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There's tons of great scanning tools, great resources for doing your due diligence, and of course they are commission free, so lots of things to consider if you're looking to join a new broker. Anyways, folks, have a great day and I'll see you in the next video.