Elon Musk asks McDonalds to accept Dogecoin. The notion is ridiculous.

Pixabay

Why would McDonalds (MCD) bother?

What is Dogecoin?

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Dogecoin is an altcoin (Bitcoin alternative). The correct pronunciation is “dohj coin.”

It was created by Jackson Palmer and Billy Markus, software engineers at Adobe and IBM respectively as a joke.

Palmer discusses the details in a fascinating 2014 interview.

"It was a joke on a whim. ... I sat down with a beer and slapped doge's face on a coin and put it live. The next day there was heaps of retweets. ... We thought it would last maybe three days."

Neither Palmer nor Markus hold any Dogecoin (DOGE-X). Palmer sold his stake for "less than the value of a used car".

They could have made hundreds of millions as it initially traded at very tiny fractions of a penny.

Fundamental Crypto Flaw

A fundamental crypto flaw with every crypto is they are terrible on both sides of the transaction.

1. They are too volatile for merchants to accept. 
2. The holders of Bitcoin, Dogecoin, and the Altcoins in general are true believers. They hold them for speculation. They are not going to buy a Big Mac or Happy Meal with them.

Dogecoin Price 

Dogecoin chart courtesy of Coinbase.

Dogecoin peaked at $0.74 on May 7, 2021 after a series of hype Tweets by Elon Musk.

What's Musk Up To Now?

It's difficult to know for sure but either this is an attention seeking maneuver by Musk or an attempt to prop up the price. 

If the former, Musk got his kicks. Over 50,000 people re-Tweeted his ridiculous Tweet. And he got the Wall Street Journal as well as this blog to comment on it. 

It this was an attempt to spike the price as Musk did before, it was a miserable failure. 

Dogecoin, Created as a Joke, is the Epitome of Greater Fool Mania

The day before Dogecoin peaked on May 7, 2021, I wrote Dogecoin, Created as a Joke, is the Epitome of Greater Fool Mania.

Speculative Mania

This story is amusing, but fundamentally, dogecoin is a joke, worth nothing.

Thank the Fed for low interest rates and Congress for three rounds of free money. That's what's fueling the latest round of greater fool mania.

Where's Dogecoin Headed?

Most likely it's headed back to zero or something very close.