They have based it on Metcalfe’s law which says at this point that Bitcoin could lose another 27%. The group also cites the part I agree with, in that so far cryptocurrency prices are mainly driven by Bitcoin which means Altcoins (other than Bitcoin) have risen and fallen in direct correlation.
Where I am not sure if I agree or disagree is their theory that a lot of this is driven by fear in the news. While I am sure it is, if the fear is unfounded why should bad news reflect on the long-term valuation?
A sensible market would be wise to react to say the hacks that have happened to Ethereum or the fact that illegal content has been inserted into the Bitcoin Blockchain. That is bad news that has relevance since these issues potentially threaten the integrity of the entire blockchain.
While we’re on the topic of Metcalfe’s law, since cryptocurrency is a completely new and largely irrational market can we trust this is a valid predictor? I am not aware that any other traditional models have successfully called any of the major events in cryptocurrency.
I do agree it was time for a significant correction but the same has happened in commodities and stocks before, yet the stock markets keep moving (albeit with a lot of money printing and manipulation-is that what regulators mean by regulation for cryptocurrency? ).
Only time will tell where things head but I do think that currencies that are efficient, secure and easy to use will stand the test of time (which admittedly are very few and I cannot think of a single one that solves all of the issues just yet).
I’ve held Dogecoin for some time and never really considered it the “internet meme joke based currency” that some consider it and recently bought more as I saw it approaching the 1 cent mark. Those days are gone with a Christmas Present of Dogecoin crossing the 1 cent mark! In fact it is been surging lately despite naysayers predicting its demise for various reasons. One huge thing Dogecoin has always had is a loyal and large community who uses the currency.
Now that Litecoin has hit the $300 USD territory and many other altcoins are very expensive clearly others have seen the value and potential in Dogecoin. In fact I believe it is undervalued and in the past 7 days Doge has nearly doubled to reach the 1 cent mark and market cap of 1.2 billion! It’s a huge milestone and for those who remember way long ago, there was a point where Doge was equivalent in value to Bitcoin!
I believe 2018 is Doge’s time to shine and it is definitely going to head into Litecoin territory (possibly the tens of dollar range in 2o18). Essentially the Dogecoin client looks the same as Bitcoin’s and Litecoin’s. In terms of technology though Dogecoin is more like a derivative or little cousin of Litecoin in the sense they both use Scrypt technology.
This is a good thing because I’ve never had delays or issues with sending or receiving Litecoin or Dogecoin, whereas Bitcoin can be slow and Ethereum is a nightmare to use (it is the worst wallet/client/network I have ever used and I absolutely dread Ethereum).
I think amazing things are going to go down for Dogecoin holders, likely not as big as long-time Bitcoin holders but I think in the coming years, Dogecoin users will be handsomely rewarded as the value skyrockets.
Another reason Dogecoin is rising is because of research, awareness and it is also a plain good buy compared to a lot of other much more expensive altcoins I firmly believe Dogecoin is largely undervalued. Dogecoin is a long-time crypto whose stability has been tested and proven for years.
I’m bullish on Dogecoin so long as the developers keep working on and marketing this currency and if they cap the supply. I don’t think it will take much for Dogecoin to see meteoric rise so long as those conditions are met.