Surprised nobody brought this up yet, so I'll start things off.
If you haven't heard by now, DOGECoin has been one of the most profitable coins to mine, if you own GPU-based miners. The return is crazy high. A person with dual HD5830's can get almost $300 USD a month.
Problem is, the market caps of other coins are shrinking. Not by a little either.
Thoughts?
market cap means nothing.... its just the current price of the shares (ie COINS) multiplied by the number of shares out there.
it in no way reflects the true value of a coin nor does it reflect how much Fiat money has been pumped into the economy.
for example.. if everyone were to suddenly turn around and dump their Doge coins tomorrow then only a small few would be able to sell at the current price and then each subsequent seller would drive the price down. so the total NET of all of the coins sold would be much much less than its market cap.
likewise if everyone were to suddenly start hoarding Doge coins then the price would skyrocket.
the problem with doge is that since everyone has jumped onto the bandwagon in order to make a quick buck and since it was based off a joke initially and since there are so many coins being created .. nobody is going to be likely to hoard these coins for any lengthy period... so there will always be a healthy supply of coins being dumped onto the market putting downward pressure on the price.
in the fiat world we would call this a speculative bubble forming which would most likely lead to a pop and then hyperinflation.
but nobody knows when this will happen exactly so people are mining and dumping as much as they can while the bubble of profitability lasts.
I don't think in the long run DOGE devalues the other currencies at all since the shift in miners has also caused the difficulty of the other scrypt coins do go down thus making them more profitable to mine.
the only thing that could really hurt the other coins is if DOGE was to spectacularly fail in a massively scandalous way which would put a negative spectre over the heads of all other coins. ie if something were to happen which would turn public opinion away from cryptocoins completely then we would have a problem in the short term.
but in the longer term it is only those coins with fundamental technological innovation AND strong development teams AND merchant acceptance that will ultimately succeed....
Poll
