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Dogecoin and the New Economy
Read why Doge is part of a worldwide economic transformation
Earlier this month, Elon posted a cryptic tweet about the economy
The next day, I asked followers what he meant. A reader came up with this interpretation.
The difference between now and the last big economic transformation in 2008 is that today, an alternative system is being constructed to support the old one in case it falters. The new economy is powered by AI, social media, and crypto.
Let’s take a look at how we’re better prepared for financial disruption than any time in memory, and why emerging technology could change the nature of work and money on Earth for the better.
Last week, Tesla released an update on its AI robot Optimus at its annual shareholder meeting.
This incredible video shows how far Optimus has come in just two years. Take a look!
Elon told shareholders he expected demand for Optimus could be as high as 10-20 billion units, or 1 to 2 robots for each person on earth.
He also predicted that the majority of Tesla’s long-term value would be not in its car business, but Optimus, which is expected to cost around $20k.
It’s not hard to see why: the Tesla bot could multiply the productive output of every person on Earth by at least a factor of two. Everyone could have a hyper-competent laborer at their disposal 24/7/365.
Meanwhile, AI tools like ChatGPT and Midjourney allow any business to hire an all-purpose writer/researcher and artist for a combined $50 per month.
As people figure out how to harness AI for maximum productivity, goods and services should become cheaper and more abundant, and everyone will have the tools to become their own business from scratch.
New Financial System
Before Tesla’s shareholder meeting, Elon told journalist David Faber that Twitter could become the basis for a more efficient financial system.
Twitter as a financial app has the potential to rescue people trapped in the anachronistic legacy banking system.
Currently, most banks offer customers around 0.1% interest on their savings accounts. Earlier this month, Apple began offering users 4.15% to store cash in its wallet app. Elon has floated the idea that Twitter could do something similar to become the “people’s financial institution.”
Legacy banks have restrictive hours of operation, and international payments can take days to clear. Twitter could offer digital payments that settle in real time around the clock.
Perhaps the best feature of Twitter as a digital banking system is that it can to bank the world: all that’s required is a phone with an Internet connection, which will soon be available everyone on Earth thanks to Starlink.
Most people alive today have spent their entire lives in the dollar system.
Country across the world have to hold dollars to participate in international trade. This is great for the US, but it hurts other everyone else, especially when America devalues the dollar through inflation.
Historically, too much inflation undermines faith in currency, causing people to flee to alternatives.
After 2008 global financial crisis shook faith in the dollar, a few pioneers started experimenting with cryptocurrency to see if it was possible to build better money using the Internet.
Bitcoin was created in response to the 2008 disaster. It solved the inflation problem by programming the rate new coins were created into Bitcoin’s code.
When everyone knew how much the money would expand ahead of time, they could trust the currency more. This is one of the big reasons for Bitcoin’s explosive growth.
Bitcoin made it possible to settle transactions at lightning-speed over the Internet (like government currencies) while preventing artificial inflation of the money supply (like gold).
Four years later, Dogecoin arrived on the scene.
If Bitcoin was digital gold, Dogecoin was digital cash. Doge was slightly more inflationary than Bitcoin, encouraging people to spend it rather than hoard. Its cheap fees and fast transactions made it suited for small cash payments on the Internet.
Today, Dogecoin and Bitcoin play complementary role in the new monetary paradigm. Bitcoin is savings technology while Doge is for spending.
Lately, there are hints that the crypto-based system is taking another leap forward. Over the weekend, RFK Jr became the first major party candidate to accept donations in Bitcoin for a Presidential campaign. The next day Vivek Ramaswamy announced he’d do the same.
The appeal of fair money isn’t limited to the West. Crypto is a global phenomenon and is finding increasing support in places like Hong Kong, Russia, and the Middle East.
Meanwhile, Elon keeps dropping hints that Doge will play a starring role in Twitter’s financial super-app.
In a weekend interview with the Babylon Bee, he was spotted wearing a Doge drone light-show t-shirt from the Dogecoin.com merch store.
While the old economic system is folding in on itself, the new one is starting to flourish.
Artificial Intelligence is ushering in a new era of abundant goods and services.
Twitter is evolving into the new financial infrastructure to bank the world in the Internet era.
And, if fate loves irony as much as it appears, Dogecoin will become the fastest, cheapest, and funniest money in the world.
Dogey Treats: News Bites
New polling from Harvard found that Elon Musk is the most popular political figure in the US.
MyDoge Social Wallet 2.0 is expected to drop soon.
Twitter increased video upload size to 2 hours and 8GB.
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Disclaimer: This is not financial advice and I am not a financial advisor. The article above references an opinion for entertainment purposes only and it is not investment advice. Always assume that the author of the article is actively trading and that the opinions expressed may be biased towards the author’s holdings. Do your own research and consult with a licensed financial adviser before making any investment decision. Do not treat any opinion expressed in this newsletter as a specific inducement to make a particular investment. Content, news, research, tools, and securities symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or cryptocurrency or to engage in any particular investment strategy. The information provided is not warranted as to completeness or accuracy and is subject to change without notice. The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, are not guaranteed for accuracy or completeness, do not reflect actual investment results and are not guarantees of future results. All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, cryptocurrency, or financial product does not guarantee future results or returns. Dogecoin is a speculative and highly volatile asset susceptible to pump-and-dump schemes.
At the time of publication, Dogecoin is around $0.07 per coin.