â—‡Why are young people enthusiastic about Doji Coin?
Recently, the 24-hour transaction amount of dogecoin in Korea’s cryptocurrency exchange was higher than the transaction amount of KOSPI stocks on the day. So, reporters asked me if the price of Dogecoin was reasonable. However, there is no reasonable price in the world. There is just a price. Naturally, the price of Dogecoin is not reasonable. That’s just like GameStop’s stock price wasn’t reasonable. The same is true that the price of expensive Gucci handbags is not reasonable. What matters is direction rather than rationality. Investors did not buy Saerom Technology stock, which was synonymous with the dot-com bubble in Korea, at a reasonable price. At that time, because FOMO was widespread in sociopathology, indiscriminate stock investment continued. Samsung Electronics also bleeds after buying stocks of Saerom Technology at the last minute.
But, ironically, the money of investors who flocked to the market at that time was the driving force behind today’s Google, Facebook, and Amazon. At that time, don’t ask, the investment created an opportunity to quickly transition from the era of the chimney industry to the era of the information industry. Inconvenient companies that started with a few servers without factories and facilities have grown into information and communications companies that dominate the world.
If you hit the server price as the intrinsic value, the stock price of Google or Facebook was incredibly bubbly. As long as we think that tangible assets have intrinsic value and intangible assets have no intrinsic value, there is no way to reasonably explain Google’s high stock price. So the method of evaluating intrinsic value has changed. The number of subscribers or visitors per day was used as a newly introduced intrinsic value evaluation index.
Google’s value is determined by the number of users, and the number of users determines Google’s advertising revenue. Of course, all the data that Google has accumulated will have economic value in the future, but almost all of the revenue comes from advertising as well. If so, it can be seen that the value of Bitcoin or altcoin also depends on the number of users. As the number of users increases, the position of cryptocurrency as an asset or currency becomes solid. If the government issues fiat currency, but the people turn away, the position of money weakens. Banknotes only function as a medium of exchange, a unit of measure of value, and a means of storing value. As the number of users increases, cryptocurrency will perform its function faithfully.
Even now, people who have become accustomed to the ancien régime, whether or not cryptocurrency has intrinsic value, are grasping startup talents at the gateway to the digital finance era. Cryptocurrencies such as Dogecoin are digital currencies that are too familiar to digital natives, but I don’t know if the analog generations who do not understand this are shaking the direction by pushing the value standard of the Ensign regime.
The reason why younger generations buy Dogecoin may be due to FOMO. Desirable FOMOs ultimately lead to a paradigm shift. Dogecoin FOMO is acting as a catalyst for the paradigm shift from the analog economy to the digital economy. The paradigm shift takes place through economies of scale. Apple’s smartphones have been successful because the number of customers buying Apple phones has reached a level sufficient to achieve economies of scale. Nokia, Motorola, and even LG Electronics in recent years have suffered a frustration because they settled on the Angiean regime, denying that the times are changing.
So, it is impossible to change the paradigm without FOMO. In fact, it’s not entirely impossible. If the paradigm shift is in the right direction, it will happen someday, but without FOMO, it might take hundreds of years. FOMO, a kind of collective madness, accelerates the transformation. Classical economics laid the academic foundation on the premise of rational human decisions. Behavioral economics presupposes that humans do not always make rational decisions. Dogecoin FOMO may seem like madness in the short term, but in the long run toward decentralized finance, more people become intensively accustomed to cryptocurrency in a shorter time. No more, nothing less. There is no reason to defend or criticize Dogecoin.
â—‡I regret the attitude of the Korean media
Young people in this era simply buy and sell intangible assets such as cryptocurrencies and live the everyday lives of digital natives. They don’t have the capital to invest in real estate, and the return on investment in stocks is low, so they try to realize high returns by investing in cryptocurrency. So, they don’t question whether cryptocurrency has intrinsic value. They are also fully aware of the risks of cryptocurrency trading.
The frenzy brought by altcoins, such as Dogecoin, is a kind of treason against the existing financial markets. Due to this treason, a greater number of people are showing interest in cryptocurrency and participating in the transaction. When the number of cryptocurrency customers increases, the tipping point of decentralized finance will be reached quickly, and the prelude to future finance will be accelerated.
The media is rebuking what the government was doing in this crisis, but that doesn’t work. What the Korean media do best is suddenly rebuking the government for what it has done so far. However, just because the market is overheated, the government cannot do anything extraordinary in the rule of law. If the government wants to take legal action, something like the’virtual box calculation law’ must be made urgently. The Dogecoin craze is not a phenomenon unique to Korea. Nevertheless, foreign media do not seem to write articles about why the government did nothing. I couldn’t find such an article because I was overexcited. The domestic media is blaming the government on the premise that the price spike of Dogecoin is bad. Overseas media dismisses it as just a strange phenomenon. Foreign media and domestic media are contrasted in that respect.
As the Korean media always likes to blame the government irresponsibly in this way, the Korean financial industry is becoming closed and regressing like the Galapagos. The US listed Coinbase on NASDAQ. The Securities and Exchange Commission (SEC) of the United States is managing the rise of a new decentralized financial industry within the existing legal system.
When the media blames the government, the public officials are hesitant to show gas lighting. Compared with foreign countries, if there was anything wrong with the government, it would be that Minister Park Sang-hee announced that it would close the exchange without a legal basis. However, the media did not raise a question about Minister Park Sang-hee’s extrajudicial remarks. At the same time, the media also maintained a negative tone with cryptocurrency, but later turned over the responsibility to the government, so the government pulled out a knife to crack down on illegal transactions.
Instead of the government’s countermeasures that are not effective, it is helpful for the media to propose an alternative such as the’cryptocurrency information disclosure system’ to advance into the future. That way, multi-level organizations in Teheran-ro will be able to reduce even the slightest amount of bloody tears in the eyes of Ammon consumers with garbage coins.
