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Cryptocurrency guru says only Bitcoin is good, not Memecoin
The cryptocurrency world is divided over the merits of meme coins, digital tokens inspired by Internet jokes and pop culture references. Proponents hail them as an opportunity for explosive returns, while established figures like Bitcoin evangelist Adam Back scoff as a fad.
Risky ride on the hype train
Meme coins have taken the cryptocurrency market by storm in recent months. Tokens like Pepe and Dogwifhat have seen surges in value, fueled by online communities and celebrity endorsements. Influencer Iggy Azalea’s promotion of meme currency is an example of this trend.
Analyst Murad Mahmudov sees potential in this space, but cautions against highly speculative microcaps meme coins – essentially small startups in the cryptocurrency world.
This speculative frenzy is not without its critics. Ethereum co-founder Vitalik Buterin echoes Back’s concerns, arguing that many Meme coins have no real-world applications or innovative technology. It calls into question its long-term viability.
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Reminder, step away. Previous bull markets also had half a dozen -30% declines. We are now at about -26% (-27% previously).
in fact, if anything, the recent drawdowns seem to be shallower, but people forget the normal bull market pattern. Don’t panic, buy low. or buy some $CMSTR with… photo.twitter.com/vBOjFN1TOn
— Adam Back (@adam3us) July 5, 2024
Back, famously mentioned in the original Bitcoin whitepaper, has a history of liquidating meme coins with his characteristic outspokenness. In 2021, he took aim at both meme creators and their creations.
He blew up the so-called again “shit coiner”, claiming that they are bad at making memes and why is unclear.
The co-founder of blockchain technology company Blockstream has further dampened the hype surrounding expensive meme-based NFTs like EtherRock, which have sold for millions despite being, in his words, “a low-res gif with no merit whatsoever.”
Is Bitcoin the Only Investment Grade Cryptocurrency?
Back’s position is clear: Bitcoin is the only cryptocurrency with real investment potential. He looks askance at meme coins and most alternative cryptocurrencies (altcoins).
This unwavering support for Bitcoin is nothing new. Back has repeatedly called Bitcoin “super cheap,” even when its price was hovering around $66,720 in April of this year.
He believes the market is underestimating Bitcoin’s potential as a digital store of value, similar to gold. Back also argues that some bear markets, such as the recent price drops that saw Bitcoin plummet to a five-month low, are necessary for investors to truly understand Bitcoin’s long-term value proposition.
A Battle of Memes and Fundamentals
The clash between meme coins and established cryptocurrencies like Bitcoin reflects a deeper debate about the future of digital assets. Meme coins represent a bet on cultural relevance and the power of community.
Their success depends on maintaining the hype and attracting new investors. Bitcoin, on the other hand, relies on its proven technology and growing adoption as a legitimate financial instrument.
Featured image from WSJ, chart from TradingView