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Dogecoin is Freedom Money
Global pandemic conditions over the last year have pushed governments everywhere to tighten regulations on their citizens.
At times, governments use of power has saved lives.
However, accelerated money printing has devalued the wealth of millions of middle and lower-class people, while many have lost jobs and businesses as a result of lockdowns.
As governments exercise increasing control, an alternative, crypto-based monetary system is rapidly emerging to compete with government fiat currencies.
The alternative system is gaining popularity because it gives people more autonomy in managing their own money and is insulated from government manipulation of money supply.
As a kind of digital cash, Dogecoin is a cornerstone of the new monetary system.
Let’s take a look at how Doge is growing as a leading form of freedom money in 2021.
Breaking the Fiat Matrix
Cryptocurrencies are at the forefront of an unfolding debate about the role of government in peoples' lives.
During last week's The B Word talk, Elon Musk said one reason he supports Dogecoin and other cryptocurrencies is because they increase the power of the individual relative to government.
"[The government is] the biggest corporation of them all. And it's got a monopoly on violence, so if you don't like corporations, you should really hate government."
He didn't refer to a specific country. However, his comments come at a time when government's role in citizens' lives is being hotly debated across the globe:
In Cuba, a youth-driven movement is protesting worsening economic conditions, government handling of the pandemic, and Internet shutdowns.
Tunisia's President dismissed its Prime Minister and suspended parliament for 30 days after violent protests against worsening economic conditions and mismanagement of the pandemic.
The Chinese government has been cracking down on cryptocurrencies, online tutoring services, and technology companies
Governments use fiat money to exercise power over people. As long as citizens are restricted to using government currency, they will be vulnerable to excessive inflation, censorship, and other manipulations.
Cryptocurrencies are a way to opt out of the fiat money system because they are not issued or controlled by any particular government or central bank.
Cryptocurrency has gained popularity during the pandemic as lockdowns and distancing regulations have nudged people to live more of their lives online.
At the same time, the US government has increased money printing to prevent a pandemic recession. With the dollar hemorrhaging value, crypto is increasingly seen as a haven from inflation.
Social media platforms have also become more aggressive in de-monetizing content, while banks have been cutting off access to some crypto exchanges. The effect has been to make censorship-free money more appealing.
In short, geopolitical events are causing the competition between crypto and fiat systems to heat up.
As crypto has gained steam, governments are looking for ways to rein it in.
The US Senate's Banking Committee has been debating crypto regulation. A proposed infrastructure bill would plan to collect $28 billion from cryptocurrency taxes by imposing strict reporting requirements on exchanges and lending protocols.
International monetary powers are also seeking to dissuade people from recognizing crypto as a form of money.
Widespread crypto adoption would weaken these agencies' power.
The idea that an alliance between government and central banks fully control money supply is relatively new in human history.
Historically, people have reached consensus on their own about what counts as money, using materials like seashells, stones, crafts, or metals to exchange value.
Only in the last century has it become the unquestioned norm for governments to exercise total authority over creation and circulation of money.
Cryptocurrency is the revival of an archaic sensibility in which citizens, not governments or banks, have ultimate control over money. As such, it is a major threat to the existing order.
A few days after The B Word, Elon posted a series of memes on the topics of government, regulation, fear, control, and money.
The memes suggest a matrix of control that dissolves when Dogecoin is widely recognized as money.
Among cryptocurrencies, Dogecoin has developed a reputation as the people's crypto because of its affordability, utility as digital cash, and universally appealing dog memes.
Does Dogecoin's broad appeal make it the perfect trojan horse to bring crypto to the world?
Over the last decade, Bitcoin has sought to democratize money for the world. However, its high price, complex technology, and occasionally combative community make it inaccessible and intimidating for many.
By contrast, Dogecoin's dog memes and easygoing vibes make it a worthy global ambassador for crypto.
In an alternative crypto-based monetary system, Bitcoin and Dogecoin could complement each other as spending and savings technologies.
Crypto is an incremental, peaceful revolution against the fiat system.
One of its big advantages is that it has time on its side. There is no expiration date for its adoption.
Each time a merchant accepts Doge for payments or an individual swaps dollars for Doge, fiat cedes a little ground to crypto.
Dogecoin returns financial autonomy to individuals, giving the underdoge little guy the powers of a Pope.
As governments exercise more power, debate will intensify about their role in the lives of citizens.
Some welcome government intervention into money. Others are likely to seek an alternative system that prioritizes transparency, privacy, and individual autonomy over centralized control.
The existence of a decentralized crypto economy gives people a powerful check on government abuse of money supply.
If government monetary policies don't benefit the people, they can peacefully opt out of the old system and into the new one.
Dogecoin's censorship-resistant technology and reputation as the people's crypto make it a rocket-powered escape craft for people fleeing the fiat system.
For Doge to grow as a truly alternative form of money, people need to be able to spend their coins in the same places that fiat holders do.
While small merchants have been leading the charge to #AcceptDoge, corporate institutions have been more cautious to embrace it. Doing so could draw ire from the existing monetary order.
Doge isn't the only financial asset with anti-establishment credibility.
Anti-Wall Street movements have formed around AMC and GameStop stocks.
The Apes—long-term holders of AMC and GameStop—have called out hedge funds for abusive price manipulation, and government regulatory agencies for looking the other way.
Hedge funds continue to short the stocks, using a variety of dubious practices such as dark pool trading, synthetic shares, and high-frequency algorithmic trading in an attempt to bankrupt the companies.
Like the Doge community, Apes use memes to communicate research and keep vibes high during the long battle with the suits.
Now, the Doge community is proposing meme asset synergy between Dogecoiners and AMC Apes by asking the movie-theater company to accept Dogecoin.
At the beginning of the year, AMC was on the brink of bankruptcy. As its stock price has recovered, it's expanded its business by buying historic theaters, airing UFC fights, and offering perks to shareholders.
Accepting Doge would bring new customers to AMC looking to spend their crypto while boosting solidarity among meme-asset communities.
AMC and Dogecoin already have important affinities.
Trading in both was halted by brokerages earlier this year during parabolic price spikes caused by retail buyers.
They've also been targets of aggressive institutional short-selling in the months following their explosion into public awareness.
Many retail investors are members of both communities. A social media campaign to unite Doge and AMC has been floated before, but this is the first time it's gotten Elon's support.
For the most part, media coverage has downplayed the power of meme stocks by characterizing them as overly volatile and speculative.
Despite negative press, both AMC and Dogecoin are up over 200% since April.
Larger companies like KFC and Burger King are starting to dip their toes into the waters of Doge, but we're still waiting for a corporate giant outside the crypto space to accept it for universal payments.
AMC accepting Dogecoin would make the meme stock movement impossible to ignore and signal that Dogecoin is ready for mainstream showtime.
Dogecoin's technology has been growing to keep pace with adoption.
The Doge-Ethereum bridge is a highly-anticipated technological milestone that will allow Dogecoin holders to transfer their coins onto the Ethereum blockchain.
Ethereum is the second-largest cryptocurrency by market cap, and a major engine behind the DeFi revolution, which allows individuals to act like banks by loaning out their crypto in return for interest.
The bridge will allow users to send Dogecoin from its blockchain to a bridge "Operator," who locks the coins.
The user receives Ethereum DogeTokens in return, which can be used on the Ethereum blockchain.
Because DogeTokens are minted in proportion to the number of Dogecoins that are locked, the value of DogeTokens is essentially pegged to the value of Dogecoin. In other words, DogeTokens are backed by Dogecoins.
Ethereum DogeTokens can be traded on decentralized exchanges, loaned out for interest, or used as collateral to take out a loan.
The exchange of DogeTokens on Ethereum could also function as an additional layer that takes some transaction burden off the Dogecoin blockchain. DogeTokens transacted on the Ethereum blockchain are not recorded on the Dogecoin blockchain.
Later, users have the option to send their DogeTokens to an Operator and get their original Dogecoins back.
The next step for the bridge a demo scheduled for September 5th.
The Doge-Ethereum bridge is an exciting technical collaboration between two of the world's leading blockchains.
For most Doge holders, it means another option for earning interest on their coins.
Ethereum's lending protocols democratize money by allowing anyone with a cell phone to access financial services without an application process, background checks, or other institutional rigamarole.
The partnership is a sign that Dogecoin is spreading its wings as it begins to explore its full potential as freedom money.
Dogecoin is Freedom Money
As global conditions have accelerated the adoption of crypto, Dogecoin is rapidly emerging as a competitor to the US dollar.
Dogecoin's technology is already superior to USD.
As governments increase their power over money and people, Doge and other cryptos will keep gaining appeal because they exist outside centralized control.
Partnerships with anti-establishment forces like the Ape movement and other blockchains are rocket fuel for Dogecoin's adoption.
On its moon mission to bring more freedom to the world, the people's crypto is just getting warming up.
Dogey Treats: News Bites
Jack Dorsey: if the internet had a native currency we could move faster and reach more people.
Is there a master plan to combine Tesla, Boring Company, and SpaceX?
BK Brazil accepts Dogecoin for its dog biscuit, the Dogepper.
News anchor Susan Li posted a meme of herself dunking a Dogecoin.
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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. 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.
Disclosure: I currently own some Dogecoin, Bitcoin, and Ethereum. At the time of publication, Dogecoin is around $0.20 per coin.