Dogecoin was literally created as a joke. Before the January dip doge was worth over 1.000.000.000 dollar! Cryptocoins are in a bubble right now. This is a nobrainer imo. Once people realise doge is not worth almost 1 billion dollar this coin will drop >80%. The question is not if it will crash but when. Only problem is, you can't short dogecoin long term. So it's not possible to capitalise on this idea. There are no futures on this coin. If i could i would buy long dated puts. Don't know how low this can go in the near term. It depends how the cryptocoin market behaves. Most coins are heavily correlated to each other.
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Bitcoin is still in a downward trend dragging other coins with it.
Actually in terms of economics you are right. But you got the fundamentals around, if you studied enough the hardware side of it first before posting numbers and negative comments about other cryptos, i suggest you add, i give my opinion to protect yourself. Add a disclaimer. But great analysis on the chart which compare btc/usd and doge/usd in same chart, the pattern goes almost 80% identical. As long as BTC is strong, all cryptos will be strong.
"As long as BTC is strong, all cryptos will be strong." True, there is a very high correlation between cryptocoins. I do believe bitcoin will further decline in the short term for a few reasons. First, for the last 4 years there has always been a decline in January. I believe this is mainly because of profit taking. The Chinese newyear has still to come which can cause further downward pressure on the price. Second, everything that goes parabolic usually doesn't end well. Why is this time different? I only know 1 reason why it actually can be different this time. The reason bitcoin was created in the first place is because of quantitative easing. The dollar and other fiat are not what they used to be. Besides that we live in a world with very low yield and almost all asset classes are expensive. This is a climate where cryptocoins can thrive. Bitcoin is kind of digital gold. But at what price, are you willing to pay the high premium? Almost everything that can go right is already baked in the price the expectations where/are so skyhigh. There is so much stupid money into crypto thinking they can get a lambo with 100 dollar investment.
And to make it complete we have the cboe futures now. Bitcoins all time high was exactly on the date futures first started trading. Coincidence? Some people are making a lot of money from these drops. On January 26 bitcoin futures will expire. Expect some volatility.
Nielsagaert
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@vanhelsin, Btw i'm investing out of the assumption that the high correlation between cryptocoins will fade away over time. Because right now people don't know what to make of it. Most people just buy a bunch of cryptocoins out of diversification because they don't know what coins will make it in the end. I see also a lot of stupid money in the cryptomarket buying altcoins without any extra value over the already succesfull coins. What's the point of all those ico's and bitcoin clones? This is just another sign that the market is irrational. Over time only the strong coins who have real value will survive the others will crash and never come back to all time highs.
Nielsagaert
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@vanhelsin, And don't get me wrong. I'm not a blockchain hater, i love the technology. I love cryptocoins. Have been investing in them and i will in the future. I just don't want to fool myself. We are not all going to the moon. Some will become filthy rich and most people will probably lose their shirt along the way.