Discover more from Risky Reads
Meme World Order: Why Dogecoin Will Thrive In A Changing World
We live in incredible times. Decades’ worth of change has happened within the space of the last few weeks.
Remarkably, there are signs that the world’s monetary order is transforming itself before our eyes.
Let’s unpack it all with an eye toward a brighter, meme-filled future.
A New Monetary Order
The global financial system is in a state of upheaval.
Last Tuesday, an analyst from the $800 billion dollar investment bank Credit Suisse put out a report predicting the birth of a new world monetary order.
Zoltan Pozsar, an insider who's worked for both the Federal Reserve and US Treasury Department, said that the ongoing commodities crisis is leading to a weakening of the US Dollar and the rise of commodity-based currencies:
In the report, Pozsar outlined three monetary orders over the last 75 years:
Bretton Woods I, from the end of WWII to 1971, is characterized national currencies backed by gold bullion
Bretton Woods II began in 1971 when Nixon took the dollar off the gold standard, and runs to the present. It is defined by a system in which government and banks have privileged access to newly created "inside money" backed by government debt
Pozsar is predicting Bretton Woods III, where currencies are once again backed by gold as well as "other commodities"
Pozsar's thesis appears to be playing out in real time.
In the last two weeks, commodity prices have exploded against the dollar, with wheat, nickel, aluminum, coal, and oil going parabolic, while gold reached a new all-time high amidst speculation of Russia returning to a gold standard.
At this fascinating moment in history, governments are being stressed like never before: Hyperinflation, supply chain disruptions, a pandemic, war, rising energy costs, stock market volatility, financial censorship, geopolitical realignment, and the rise of stateless digital currencies are all putting nation states' legitimacy to the test.
At another time, any one of these stressors could pose a challenge to government fiat system. Now, they're all happening at once.
Fiat currencies are backed by government debt, which is only as valuable as peoples' confidence in the government itself.
If governments falter, so will the value of their money, which could drive up the price of tangible commodities even further.
It may look like a crisis is brewing to rival 2008 or 2020, but this time something is different.
One of the most eye-popping lines from Pozsar's paper was his take on digital assets: "After this war is over, ‘money’ will never be the same again…and Bitcoin (if it still exists then) will probably benefit from all this.”
It's logical that commodity-based monetary order would benefit Bitcoin, which is essentially backed by the energy, a sort of ur-commodity that makes the production of all other commodities possible: wheat needs solar energy to grow, metals needs electrical energy to be mined, oil is transported around the world using petrochemical energy, and so on.
On Wednesday, former Twitter CEO Jack Dorsey took note of crypto's role in the changing order, predicting the demise of government fiat currencies.
One of the biggest stories of the last year has been nation states' adoption crypto.
A big domino fell last week when President Biden released an executive order calling for agencies to establish pro-crypto policies.
The order is the first in US history to officially recognize crypto as a positive force in the world.
Whatever his role in Bitcoin's genesis, Elon has shown intricate understanding of the forces that converged to create it.
Born out of the 2008 financial crisis, Bitcoin was made for just this type of scenario, offering regular people an escape hatch from the failing fiat system.
Crucially, Bitcoin's supply is fixed at 21 million, meaning central banks or governments can't create more of it if they run out.
Perhaps more than any type of money that preceded it, Bitcoin belongs to the people who hold it.
The only problem is that entry into the Bitcoin community is not easy. Regular folks are intimidated by its complex technology, insider language, and steep price, scaring away many who need it most.
If only there were a cheaper, friendlier version of Bitcoin...
Meme World Order
Bitcoin will likely benefit from a new monetary order because it is backed by electricity, but there exists a commodity even more fundamental than energy: memes
A meme is a transmissible unit of culture. It can take many forms: phrases (Netflix and chill), acronyms (YOLO), videos (of cats), and especially humorous stock images overlaid with text.
Memes are the ultimate democratic commodity. It takes a high level of technology and capital to mine gold or grow industrial crops, but anyone with a smartphone app can contribute to the meme economy and participate in the global hive mind conversation.
Memes are valuable because they create decentralized forms of community, allowing millions of people to share a common language across borders and boundaries.
In the race to become the top meme, however, Dogecoin is nipping at Bitcoin's heels.
Bitcoin may be the top dog for now, Doge has a leg up because it is the first form of money to be backed by the memes of its community.
The power of memes should not be underestimated.
Just as energy is necessary for shaping the outer world, memes can shape our inner world, transforming collective consciousness by spreading humor, positivity, and transgressive information at lightning speed.
No matter how powerful Bitcoin grows, a portion of the population will probably resist it for the foreseeable future because it carries a connotation of crypto-elitism.
If these people are to join the digital revolution, it will be comic, high-vibe Doge memes that bring them aboard.
Viewed this way, Bitcoin and Dogecoin are natural complements, with Bitcoin acting as a battering ram to knock down the gates of the legacy financial system and Dogecoin as a meme-powered campaign to win the hearts and minds of regular folks trapped within it.
Like Bitcoin, Doge's true origins are enigmatic. The official story is that it was created as a joke by two computer developers, but speculation persists of a hidden story behind its immaculate conception.
No matter its beginnings, Dogecoin seems tailor-made for this moment.
The Dogecoin community is welcoming and inclusive. Anyone can grasp the simple positivity of the Doge meme and Do Only Good Everyday ethos.
New tech like the MyDoge social wallet is making it easier than ever to bring new Shibes into the fold, combining traditional social media features like profiles and group messaging with blockchain and memes.
A new monetary order may seem scary, but also represents an opportunity to improve a system that is failing the vast majority of people.
Bitcoin represents hope in this respect. So does Dogecoin, which has been described by its nominal creator Billy Markus as "Bitcoin with a dog on it."
The world needs a fairer financial system, but also a happier one. Dogecoin fixes this.
Backed by memes and community, Doge will thrive in the new monetary order.
The dog makes all the difference
With the world in a state of flux, it's possible we are entering a new monetary order based on commodity-backed currencies.
Bitcoin is backed by the most secure computer network in the world. The more energy is used to power Bitcoin, the more secure and valuable the network becomes.
Dogecoin preserves the best features of Bitcoin, but is also backed by democratically created dog memes.
These memes are the bedrock of the Doge community, the most fun-loving and positive tribe in crypto.
The current system isn’t working for nearly everyone. People are hungry for something new, but many remain leery of digital finance.
Crypto needs a light-hearted ambassador to the wider world. It needs Dogecoin.
If crypto saves humanity from financial collapse, it will be because the dog made the difference.
Dogey Treats: News Bites
Elon unleashed a tweet-storm Sunday and early Monday with tweets about the rise and fall of civilizations, inflation, and rising commodity prices. In response to a tweet by Michael Saylor, he confirmed that he doesn't plan to sell his Doge, Bitcoin, or Ethereum. Next, he posted two memes offering critiques of conformity in the media. Finally, he challenged Vladimir Putin to "single combat," set the stakes as "Ukraine," and asked the Kremlin "Do you agree to this fight?" Also, he posted, "There is a beauty to the biological substrate" and "By the pricking of my thumbs ..." This last tweet is a quote from MacBeth, which is followed by the famous line, "Something wicked this way comes."
Adam Aron announced that AMC is now officially accepting Dogecoin and Shib through BitPay. He also posted a cryptic tweet of the bat signal with a cash symbol, saying "Some of you like mysterious tweets, looking for hidden meaning, even though no concealed thought was intended. Gee, I wonder how the 'hidden meaning people' will interpret this picture."
On Tuesday, Russia suspended foreign currency trading. Russian banks will no longer sell foreign currencies to citizens and will limit withdrawal of US dollars. Russia also suspended a 20% Value Added Tax on gold bars to encourage citizens to swap their dollars for gold. The Belarusian PM said that Russia and Belarus will stop using US dollars for energy.
A group of US Senators proposed a bill to stop Russia from liquidating its gold reserves.
Crypto exchange Kraken launched a $10 million Ukraine relief package, gifting $1,000 worth of Bitcoin to every Ukrainian user. Bitcoin Magazine reported that Ukrainians are embracing Bitcoin for everyday purchases.
Unusual_whales published a list of politicians who invested in energy immediately before before the Ukraine invasion.
The US Treasury announced a crypto awareness program.
Elon's mother Maye posted a #ProudMom tweet in appreciation for his assistance to Ukraine.
Elon and Grimes announced the birth of their second child through surrogacy, Exa Dark Sideræl Musk.
Elon posted a meme referencing the spoof-conspiracy theory "birds aren't real."
South Korea's newly elected president reportedly supports Dogecoin.
Jack Dorsey's Block is making a hardware wallet that uses a fingerprint sensor.
How long until NBA players are paid with digital currency?
SpaceX launched another group of Starlink satellites, its 10th Falcon launch in the first 10 weeks of 2020.
After a Twitter user tipped @SlimJim 0.69 Doge, Twitter's Marketing account responded, "0.69 doge? nice."
Thanks for reading! Consider sending a tip or Super Following on Twitter to help keep the newsletter going!
Memes of the Week
It's ALL Risky!
Thank you, kind reader, for reading and subscribing to this newsletter. I really appreciate it!
If you haven’t already, please sign up to this email newsletter for more weekly articles like this one. Also, please share it with a friend or on twitter if you enjoyed this article.
What do you think? Will Dogecoin end war as we know it? Let me know!
Remember, Dogecoin is risky. But then again, it’s all risky!
Follow me on twitter at @itsALLrisky
Email me at itsALLrisky@gmail.com
Send a Doge tip: DHA5831Aoh2CVhBdX8rAv74kEGzqDg9BUx
This article was written in collaboration with @CryptoDogDivine, give them a follow!
Don't forget to subscribe to this newsletter!
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.
At the time of publication, Dogecoin is around $0.11 per coin.