While this post has an important emphasis on Dogecoin, let me start with a general question on crypto. What would be your investments if you were placed last year today?
I myself had many conversation about Bitcoin and crypto with friends last year same time. Most of the conversations were around the halving event of Bitcoin and its significance. No doubt, any of the crypto enthusiast with the knowledge of today would be buying anything and everything last year same time. Be it Bitcoin, Litecoin, Ethereum, B-Cash, Monero, XRP, etc.
In fact you probably wouldn't be wrong to pick any five crypto coins blindly. Other than Hive. Joke. :)
During that time, I did recommend some friends to consider Bitcoin as an investment. I very rarely tell anybody to buy this or that. But I do find Bitcoin the most simple to understand and at a right price it would be no brainer as an investment. Some did take the advice and made some profits, some just ignored.
One of my colleagues, a big no-coiner, never could grasp the idea and the implementation of Bitcoin and kept repeating the same thing - "not a real thing". Which is ok. Perhaps I am wrong in my understanding.
But the thing is, the same person who rejected Bitcoin as an investment at $900 and then again at $9000, few months ago tells me that Dogecoin is the next big thing. At that time Dogecoin was already trending and up to 4 cents. On one hand I could see the enthusiasm about crypto, on the other hand I just couldn't make sense of Dogecoin. So, I had not much to say.
Sure enough Dogecoin goes parabolic. I didn't invest. I didn't even consider. But the sings were there and they were clear. Note to a future self, when a no-coiner, embraces a coin due to a Shark Tank celebrity or other celebrity promoting it, take is a little be more seriously. :)
Yes, the same person who didn't want to invest in Bitcoin when it was cheap, decided to go put in some money on Dogecoin because they believed Mark Cuban was going to do big things with it.
While Dogecoin in my opinion is really overpriced (an my opinion means nothing) same people like Elon Musk, Mark Cuban, etc keep trying to make it the next big thing. I couldn't resist, and invested like $50, lol. It ended up doubling then I sold. :) I bought a 3 month options contract on some stock, which I won't tell what it is yet. More likely it will expire worthless.
Last few days we had some downward movements in crypto. I understand, it is kinda sad. But at the same time, we are way higher than we were last year same time. Going back to the original question, what would we be buying last year today? What if this is the start of the bear market? Shouldn't that be another opportunity to buy up more before it is too late?
This is what I would consider as a win win situation for those of us who have not accumulated enough yet. If they go up great, if they don't also not bad.
Moral of the story, sometimes signals are so obvious that we don't pay too close of an attention. When somebody didn't want to buy Bitcoin when it was cheap even if they had plenty of opportunities, and then come back pitching about Dogecoin, we should probably listen. :)
Full disclosure, I bought $20 worth of Dogecoin again. Still holding Litecoins. Something tells me Litecoin has more stories to tell.