Dogecoin: Past, Present, and Future of currency from the lens of a doge millionaire!
It was the winter of 2017 when Bitcoin fever gripped the Indian silicon valley for the first time. I had heard about it before more from the perspective of blockchain and bit of intrigue about Satoshi Nakamoto. But being a fundamental investor and having made close to 40% return during the ongoing Indian small-cap boom, I steered clear away from it.
Not just that I recommended most of my friends including a very smart girl, to not invest in cryptocurrency. They were more like a Ponzi scheme for a fundamental investor like me. But in the melee, a friend and co-worker of mine took the crypto plunge with 10 of his like-minded friend.
The setup: They invested 10k each and procured a high-end computing machine with the sole aim to mine bitcoin, the darling of crypto of currency.
The setup was done in one of the crypto crazy friend’s rooms, the bitcoin node was downloaded and before it could finish (took an insane amount of time on new jiofi) all of them were sure that bitcoin mining was a distant dream. It was impossible to mine the bitcoin with that configuration and connectivity.
With the mess and investment already in the drain, they started finding someone who could buy the machine in scrap, but alas as they say easy to buy, difficult to sell! no one turned up to buy on Olx. And then one day my friend heard about the dogecoin on the internet (the infamous joke coin, mind you he himself jokes a lot).
Then, in an instant, the team decided to mine dogecoin instead of bitcoin, as it was relatively easy to mine doge in 2017. The work started but with less enthusiasm this time. They were mining close to 25k coin per week and the heat generated from the machine was actually pleasing to our friend in winter, it kept all of them entertaining when dogecoin surged to its lifetime high in early 2018 but alas with the onset of summer and crash in the whole crypto world, the CPU sound was no more amusing.
They finally decided to shut down the operation (since there was no AC in our friend's room and he could barely sleep in summer) by having 1 million coins by March. The calculation happened amid much fanfare but ended in dismay as they realized that the price crashed to less than .10 paise and they were actually at the loss. On top of that, the electricity bill was huge.
The blame game started and a few of them took it upon them to prove that the investment was not worthless, eventually, the friendship survived and the dogecoin was thrown to some corner of the hard disk.
You might be getting restless, to imagine the price of their investment today, but believe me, I was their stock market advisor for a year, where I gave them a 40% loss during the bearish cycle(2018). But they took the loss very calmly. And the great thing was that they persisted with dogecoin, through the unluckiest year of their investment.
The result: Today their cumulative worth is approx 50000000 ( don't count trailing zero’s, may go less and more anytime as the currency is so volatile) and they certainly can’t believe their luck.
During my recent chat with one of them, when I ask about selling dogecoin, he said, they are going to HODL till it reaches the moon.
I threw a lot of analyst reports, told them about the Dogefather's SNL appearance and how it is poised to crash after that, but they already had enough of my fundamental bugs.
All they believe now is that dogecoin will help them clear their student loans, personal debts, house loans, sister’s marriage, and property dealing, and whatnot, the list is endless…
The bunch of folks, who were always joking about their luck, can’t believe that a joke coin has made all of them instant millionaires.
And I, who has witnessed this story from close, who is following Dogefather on Twitter since the time I got my account (recently unfollowed him), a fan of Satoshi, but a bigger fan of Peter Lynch, still hoping to give better returns to my investors.
During this pandemic, I could earn (2x-8x) money for most of my clients but alas, the 100x jump in Dogecoin has surpassed all of their expectations. They sometimes blame me to keep them away from the crypto world and I have no reason to accept that I am guilty (albeit temporarily).
I am not sure if the future will prove my point or it will take crypto to the moon but one thing is sure, the crypto-mania has made a lifetime fortune for risk-takers and given misery to all fundamental investors alike.
Disclaimer: Cryptocurrencies are one of the riskiest investment markets. This post is no recommendation to buy crypto’s, please follow your country's financial regulation for the same. Though this story is as real as cryptocurrency itself, I have taken full liberty to fictionalize a few portions for hiding the real owner's identity. For all legal purposes, this should be treated as a work of pure fiction.