It’s pretty bad when you get phone calls from relatives (multiple) asking if you’ve heard of SHIB and they then proceed to shill their gains and why you should buy some.
I’ve been a little quieter on here as of late but this is definitely worth sharing a few of my thoughts about today’s dog money culture. Even more so, the interest and psychology of most retail entering the markets recently.
Do I think dog money is bad?
Absolutely not, it’s became something that unites the people together. History and time have shown us these types of things can compound quite quickly. I would still be a little wary for reasons to explain in this post.
We like the Dogs
The Shiba Inu breed has pervaded our social channels and day-day life for some time now. What started out as a purely platonic meme, has now manifested over $80B of magical internet money. People like the dogs, clearly.
What’s interesting to see is the macro trends we’ve witnessed since the onset of COVID-19. The major primer for retails growing interest in memes was most certainly GameStop. It’s almost as if everyone was under lockdown and just grew so bored and got together and said – “Let’s pump AMC and GME, we like the stock”.
It’s exactly what happened in communities like Wall Street Bets. On the crypto side, history has shown us retail gives zero shits about actual technologies or fundamental values. You can toss these concepts to the trash bin.
Remember your buddy in 2017 who bought XRP because it was “going to be the next Bitcoin”? It’s the same principle here, just memeified.
What we’ve seen today with dog money is precisely the same principles of the 2017/18 bull run. Retail likes cheap coins and memes are the thing now. It’s interesting to note that memes have also trickled into the stock market due to reasons explained above. I don’t think there’s some long-winded explanation for it.
If something is fun, everyone gets the meme and unites behind it, you’ve really created something powerful. Memes run the internet, imagine tying a token behind that meme and you get what we’re seeing today. The largest attractions for network effects and market share drawn in crypto come from these very points. The dog money communities should not be overlooked.
Memes are money.
Will the dog money end badly?
Absolutely, nothing lasts forever.