Dogecoin costs proceed to fall after Doge co-founder calls cryptocurrencies a “rip-off” and China cracks down on crypto mining – The Scotsman
Dogecoin prices have continued to slide since their most recent high last month on June 25, when memecoin apparently rebounded after the cryptocurrency market was relieved of the Chinese government’s pledge to curb the country’s huge crypto-mining operations. was hit hard.
The announcement by the Chinese state agency in June caused the prices of all major crypto coins to collapse across the board – with Bitcoin fans and investors fearing the worst when the world’s most popular cryptocurrency crashed and fell below $ 30,000 in value.
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Bitcoin prices have dropped below $ 30,000 for the second time in a month
In particular, the usual trading trends “hodling” (refusing to sell or swap cryptocurrencies when prices fall) and “buying the dip” seemed to be more burdened, as China’s continued action brings even more volatility to the market, which for is to be expected sometime.
While Bitcoin’s price has risen since the initial crash and continues to be puffed up by investor enthusiasm, fears remain as to whether it can surpass the mid-$ 30,000 mark and about the value of Dogecoin.
Doge’s growth has slowed significantly since last month’s massive crash.
But it has also been hampered by the arrival of new alt-coins on the scene like “Baby Doge” and, more recently, by the stinging criticism of Dogecoin co-founder Jackson Palmer’s cryptocurrency.
Dogecoin price drop continues after Doge co-founder calls cryptocurrencies a “scam” and China cracks down on crypto mining (Image: Shutterstock)
Here’s what Dogecoin is, what it’s worth right now, and why it’s having problems right now.
What is Dogecoin?
Similar to Bitcoin, Dogecoin is an open source cryptocurrency that can be traded and exchanged between users over decentralized peer-to-peer networks, with tokens being harvested as a reward for users who act in lieu of banks or governments for the Ensure the validity of their transactions.
Dogecoin pays tribute to the Shiba-Inu “Doge” meme, which has been widespread on the Internet for years, and was created in 2013 as a satirical interpretation of the booming popularity of more traditional coins like Bitcoin and their cult following.
But the coin has closed and is now being taken just as seriously as its crypto competitors after increasing its visibility around the world in recent years.
The difference to Bitcoin, Tether or Ethereum is that this coin has spread like wildfire due to its meme origins and the appreciation of Tesla founder and cryptocurrency lover Elon Musk.
The disrespectful tech billionaire spun the crypto market earlier this year when he announced that Tesla would suspend Bitcoin payments for its vehicles due to the currency’s significant environmental impact and routinely poked fun at Bitcoin while watching Dogecoin online and praised the price of the memecoin.
How much is it worth today
Dogecoin price has remained low since it last peaked at $ 0.263864 on June 30, according to CoinDesk.
This was a huge drop from its high in early May when the coin’s rapid surge hit a high of $ 0.0722320 on May 8th.
Today (July 20) its value fluctuated between $ 0.165747 and $ 0.176505 – with the price of the coin continuing to drop between one and five percent over the past 24 hours and a 24 hour period at the time of writing – hit low of $ 0.160001.
This follows the emergence of a new alt-coin competitor dwarfing Dogecoin’s rising success, with ‘Baby Doge’ arriving as the younger sibling of the resident Memecoin and already emerging as Elon Musk’s new favorite coin – a pattern new variants continues. like Shiba Inu Coin, on Dogecoin.
However, the initial hype surrounding Baby Doge appears to have subsided, as the coin reportedly posted a 40% drop in value this week.
But the continuing drop in the price of Dogecoin has caused fans and investors alike to fear for the long-term success of the cryptocurrency.
Who is Jackson Palmer and what did he say about crypto?
Unlike his former partner and co-founder, Billy Markus, who recently said he invested in Dogecoin for the first time ever to help him recover from the June crash, Jackson Palmer has shown deep skepticism about the cryptocurrency.
The software engineer teamed up with Markus in 2013 to develop Dogecoin as a joke and make fun of the cult-like fascination with Bitcoin, which rose in visibility and value in the 2010s.
But despite his original intention of using Dogecoin as a vehicle to fuel greater innovation in the cryptocurrency space, Palmer announced that he would be taking an extended break from the crypto world in 2015, criticizing his considerably wealthy, white and male makeup.
On Wednesday (July 14th), Palmer revived such criticism of the industry in a rare re-occurrence on Twitter.
In a series of tweets, Palmer said he had no plans to go back to cryptocurrency, calling it “an inherently right-wing, hypercapitalist technology that was primarily designed to increase the wealth of its proponents through a combination of tax avoidance and lessening.” To increase regulatory oversight ”. and artificially enforced scarcity. “
He continued, “The cryptocurrency industry leverages a network of dubious business connections, bought influencers, and pay-for-play media to maintain an iconic“ get rich quick ”funnel designed to attract new money from the financially desperate and naive to win.
“Undoubtedly, there was financial exploitation before cryptocurrency, but cryptocurrency is almost purposeful to make the profit-making funnel more efficient for the front runners and less protected for the weak.”
Palmer’s criticism has sparked a backlash among many within the crypto community who believe it can offer a powerful alternative to traditional financial systems and banks.
Nick Saponaro, co-founder and CIO of the Divi Project, a decentralized payments ecosystem that aims to “accelerate the adoption of digital currencies,” is one such personality who questions Palmer’s criticism of cryptocurrency as a system controlled by a select group of wealthy individuals represents and elite people.
“All markets are manipulated to some extent,” he said.
“I would argue that crypto is one of the lowest, especially when you consider the stock market manipulation by actors who have undue power.
“How about if the world’s largest companies, like Amazon, effectively pay $ 0 in taxes? I would argue that the traditional financial system was co-opted by the elites to use their bottom line far more than cryptocurrency. “
Saponaro continued, “There are so many beautiful results as a result of the technology being developed by the developers and business people in this field that are being completely ignored by the developers [Palmer’s] Dispute.
“We saw lives changed, families fed, businesses built, and freedom gained by participating in crypto.”
What’s next for Dogecoin? How are Ethereum and Bitcoin doing?
Dogecoin price predictions after this prolonged slump seem to have pushed hopes that the coin will finally reach $ 1 or more in value shortly a little further out of reach.
Cryptocurrency came closest to that groundbreaking threshold in early May, before China’s recent moves to curb transaction flow and mining shook the sustainability of the crypto market and whether there will be any more instability.
Bitcoin and Ethereum, the currency dominantly associated with the controversial technology trend of NFTs, have also seen major volatility and price declines since news of crackdown on China shocked the market.
Ethereum struggled to hold values above its $ 2,000 benchmark, while Bitcoin similarly got stuck in the low to mid-range of $ 30,000.
Both major cryptocurrencies collapsed today (July 20) as persistent fears of rising coronavirus cases and fears that lockdowns would resume as restrictions were eased around the world hit the market – with European, US and UK indices and stock markets on Monday morning.
With Ethereum still falling to just over $ 1,750, signs of further market instability remain.
Additional coverage by Reuters journalist Julien Ponthus