With the rise in popularity of Bitcoin and other cryptocurrencies, Federal Reserve Chairman Jerome Powell was asked if he is worried about the impact crypto might have on the economy and the ability of people to use it as payments.
First, “We think of them more as crypto assets,” Powell said, adding, “They’re really vehicles for speculation. They’re not being actively used as payments.”
But then the Fed chairman continued to compare cryptocurrency to gold in terms of how it is used for speculation: “For thousands of years, human beings have given gold a special value that it doesn’t have,” he said. “Yet, for thousands of years, they have been using it.“
In other words, people, in their foolishness, used a completely worthless asset as money . Apparently, thousands of years ago people were not very smart because there was no Jerome Powell, who could explain to them that only cut paper with portraits of dead pharaohs can be real money.
Today I participated in a discussion on general topics of the crypto market. And every second person in the Clubhouse room asked a question about Dogecoin. People wondered why it had grown so much and whether it was worth buying in.
I can answer. Each cryptocurrency has its own pharaohs. The official pharaoh of Doge is Elon Musk. His country, Twitter, has 51 million citizens. In the era of Ramses II in Ancient Egypt, the pharaoh had only 2 million “followers”.
Pharaoh could order his citizens to build gigantic structures or go to war with Lebanon to carve a commemorative inscription on a tablet in Beirut.
Elon Musk publishes the face of the Shiba dog, and millions of his followers run to buy Dogecoin. They also have no independence, their pharaoh decides for them. This is the real reason for the growth of this fork of Litecoin, which has not even made any updates since its inception. Its developers believe that Doge is so divinely perfect that it does not need additional improvements.
People don't even care that Doge has an unlimited supply and can be printed at the same speed as the US dollar. Indefinitely. With the current issue of 129 billion coins (which is twice as much as XRP), Doge's price is already heading towards half a dollar.
People do not understand what the special value of Dogecoin is, as in ancient times they did not understand what the value of gold was, but they still used it. Because the Pharaon said so.
In modern times, Bitcoin shall be gold and Doge will be the dollar. And next US president will be Elon Musk, and monthly aid packages and stimulus checks to his citizens will be issued in Doge. 100%. Mark my words.