Mark Cuban predicts DAOs will transform companies. Warren Buffett’s Berkshire Hathaway embraced the core ideas behind the latest crypto trend decades ago.

Warren Buffett
Warren Buffett.

• Mark Cuban sees decentralized autonomous organizations, or DAOs, as disruptive.

• DAOs run on blockchains, democratize decisions, and use smart contracts.

• Warren Buffett’s Berkshire Hathaway relies on decentralization and autonomy.

See more stories on Insider’s business page.


The tech billionaire Mark Cuban expects decentralized autonomous organizations, or DAOs, to transform how companies are built and run. Warren Buffett’s Berkshire Hathaway embraced decentralization and autonomy decades ago, paving the way for DAOs.

DAOs are “the ultimate combination of capitalism and progressivism,” Cuban tweeted on Monday.

“There are so many features and processes in any given company that can be more efficient and productive using a decentralized, trustless approach. As companies are built on this approach we will see some incredibly disruptive businesses built,” the “Shark Tank” star, Dallas Mavericks owner, and dogecoin champion added.

Buffett’s company showcases the power of the core ideas that underpin DAOs, and it could even be considered the precursor to this new breed of organization.

What is a DAO?

DAOs are digital organizations that provide a fresh way to fund ventures, democratize decisions, and split proceeds. They’re “decentralized” because they’re hosted on a blockchain and all their stakeholders, not just executives and board members, make decisions. They’re “autonomous” because they employ smart contracts that automatically execute actions when certain conditions are met, without requiring human approval.

Typically, anyone who owns tokens tied to a DAO can vote on proposals, and their votes are weighted based on the number of tokens they hold – similar to the voting rights attached to shares. If a proposal garners enough votes, a smart contract is triggered, and the approved action is executed.

“If blockchains, NFTs, smart contracts, DeFi protocols, and DApps are tools, DAOs are the groups that use them to create new things,” Packy McCormick explained in his Not Boring newsletter earlier this year. “If they’re the what, DAOs are the how.”

McCormick also pointed out that Vitalik Buterin, ethereum’s cofounder, highlighted DAOs as a potential blockchain application in ethereum’s white paper in 2013.

Berkshire is an analog DOA

The core principles underlying DAOs, decentralization and autonomy, are key elements of Berkshire’s corporate structure.

Buffett’s company owns scores of businesses, including Geico, See’s Candies, and BNSF Railway, and it employed 360,000 people at the last count. But only a couple dozen people work at Berkshire’s headquarters in Omaha, Nebraska.

That disconnect is possible because Berkshire has decentralized its operations into dozens of subsidiaries, which are themselves divided into thousands of smaller business units. It also embraces autonomy, leaving its subsidiaries to run themselves with virtually no interference.

“We would rather suffer the visible costs of a few bad decisions than incur the many invisible costs that come from decisions made too slowly – or not at all – because of a stifling bureaucracy,” Buffett explained in his 2009 letter to shareholders.

Lawrence Cunningham, a law professor at George Washington University and the author of multiple books about Buffett, highlighted decentralization and autonomy as two of Berkshire’s core management principles in “Margin of Trust.” He concluded that the company’s trust-based culture allowed them to work.

“Neither decentralization nor autonomy are the primary reasons for Berkshire’s success or durability,” he wrote. “Trust is. Autonomy is a manifestation of trust; decentralization is a consequence of it.”

There are clear differences between Berkshire, a sprawling conglomerate of decentralized, autonomous businesses, and DAOs, blockchain-based constructs that rely on smart contracts to strike virtual deals. For one, trust is critical to Berkshire’s success, while DAOs enable “trustless” processes – at least in Cuban’s view.

But it’s fair to say Buffett’s company is grounded in the approach Cuban sees as key to the beneficial disruption brought by DAOs and could be seen as a forerunner of such organizations.

Read the original article on Business Insider

Mark Cuban predicts DA Os will transform companies. Warren Buffett’s Berkshire Hathaway embraced the core ideas behind the latest crypto trend decades ago.

Warren Buffett
Warren Buffett

• Mark Cuban sees decentralized autonomous organizations (DAO) as disruptive.

• DA Os run on blockchains, democratize decisions, and use smart contracts.

• Warren Buffett’s Berkshire Hathaway relies on decentralization and autonomy.

See more stories on Insider’s business page.


Tech billionaire Mark Cuban expects decentralized autonomous organizations (DAOs) to transform how companies are built and run. Warren Buffett’s Berkshire Hathaway embraced decentralization and autonomy decades ago, arguably paving the way for DAOs.

“It’s the ultimate combination of capitalism and progressivism,” Cuban tweeted about DAOs this week. “There are so many features and processes in any given company that can be more efficient and productive using a decentralized, trustless approach.”

“As companies are built on this approach, we will see some incredibly disruptive businesses built,” the “Shark Tank” star, Dallas Mavericks owner, and dogecoin champion added.

Buffett’s company showcases the power of the ideas that underpin DAOs, and it could even be considered the precursor to this new breed of organization.

What is a DAO?

DAOs are digital organizations that provide a fresh way to fund ventures, democratize decisions, and split proceeds. They’re “decentralized” because they’re hosted on a blockchain and all of their stakeholders, not just executives and board members, make decisions. They’re “autonomous” because they employ smart contracts that automatically execute actions when certain conditions are met, without requiring human approval.

Typically, anyone who owns tokens tied to a DAO can vote on proposals, and their votes are weighted based on the number of tokens they hold – similar to the voting rights attached to shares. If a proposal garners enough votes, a smart contract is triggered and the approved action is executed.

“If blockchains, NFTs, smart contracts, DeFi protocols, and DA pps are tools, DAOs are the groups that use them to create new things,” blogger Pa cky McCormick explained in his Not Boring newsletter earlier this year. “If they’re the what, DAOs are the how.”

McCormick also pointed out that Ethereum’s cofounder, Vitalik Buterin, highlighted DAOs as a potential blockchain application in ethereum’s white paper back in 2013.

Berkshire is an analog DOA

The core principles underlying DAOs, decentralization and autonomy, are key elements of Berkshire’s corporate structure.

Buffett’s company owns scores of businesses including Geico, See’s Candies, and BNSF Railway, and it employed 360,000 people at the last count. Yet only a couple of dozen people work at Berkshire’s Omaha headquarters.

That disconnect is possible because Berkshire has decentralized its operations into dozens of subsidiaries, which are themselves divided into thousands of smaller business units. It also embraces autonomy, leaving its subsidiaries to run themselves with virtually no interference.

“We would rather suffer the visible costs of a few bad decisions than incur the many invisible costs that come from decisions made too slowly – or not at all – because of a stifling bureaucracy,” Buffett explained in his 2009 letter to shareholders.

Lawrence Cunningham, a law professor at George Washington University and the author of multiple books about Buffett, highlighted decentralization and autonomy as two of Berkshire’s core management principles in “Margin of Trust.” However, he concluded that the company’s trust-based culture allowed them to work.

“Neither decentralization nor autonomy are the primary reasons for Berkshire’s success or durability,” he wrote. “Trust is. Autonomy is a manifestation of trust; decentralization is a consequence of it.”

There are clear differences between Berkshire, a sprawling conglomerate of decentralized, autonomous businesses, and DAOs, blockchain-based constructs that rely on smart contracts to strike virtual deals. For one, trust is critical to Berkshire’s success, while DAOs enable “trustless” processes – at least in Cuban’s view.

Yet it’s fair to say Buffett’s company is grounded in the approach Cuban sees as key to the beneficial disruption brought by DAOs, and could be seen as a forerunner of such organizations.

Read the original article on Business Insider

Mark Cuban adds Ethereum-based crypto platform Polygon to his investment portfolio

mark cuban

Billionaire “Shark Tank” investor Mark Cuban has added Ethereum-backed platform Polygon to his investment portfolio. Polygon, which is designed to scale tEhereum chains and develop the blockchain’s infrastructure, announced the investment on Twitter late on Tuesday.

Polygon originated from the Matic network, which created the Matic token but has since developed its scope and now describes itself as “Ethereum’s internet of blockchains”.

“Polygon is the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development. ” its developers wrote on Medium when announcing the expansion. It is based on Polygon SDK, a framework that effectively expands the ethereum network to include a wider variety of chain types and therefore adds functionalities to ethereum.

“Polygon effectively transforms Ethereum into a full-fledged multi-chain system (aka Internet of Blockchains). This multi-chain system is akin to other ones such as Polkadot, Cosmos, Avalanche etc”, the Medium post continues. Compared to the named systems, Polygon says it offers improved security, the ability to make use of the already existing, larger ethereum network and is more open and powerful.

Matic is the 12th largest crypto coin based on market capitalization and was last up 35.2% in the 24 hours to 05:51 am E.T. at $2.27, according to Coingecko data. Matic was among the coins affected by the high levels of volatility in the cryptocurrency market over the past weeks, reaching its highest ever valuation of $2.62 on May 18, but has fallen by almost 14% since then.

The Matic network was founded in 2017 by Jaynti Kanani, Anurag Arjun and Sandeep Nailwal. Naiwal is behind the crypto based Covid-19 relief fund for India, CryptoRelief, which has collected over $1 billion worth of crypto tokens through donations from industry heavyweights like Vitalik Buterin.

By investing in Polygon, Cuban has expanded the crypto-based companies in his investment portfolio and reaffirmed his bullish stance on crypto. He has previously invested into various platforms like OpenSea, Lazy and Mintable that allow users to showcase and trade NFTs and other digital assets, as well as DeFi protocols.

Cuban has also publicly supported investing in cryptocurrencies and allows them as payment methods for tickets and merchandise of his basketball team, the Dallas Mavericks. In recent months, he has especially encouraged his followers to invest in dogecoin and has said he believes the meme crypto is a good way to learn about money.

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Bitcoin rebounds 15% to top $38,000 after vicious weekend rout

GettyImages 1231620194

Bitcoin rebounded as much as 15% on Monday to trade around $38,683 per coin after a vicious sell-off over the weekend. The cryptocurrency slipped 18% to $33,674 at intraday lows on Sunday.

The crypto space has faced a tough few weeks of risk-off sentiment causing the total industry market cap to fall over the weekend to $1.57 trillion from record highs of $2.56 trillion on May 12, according to data from CoinMarketCap.com.

Mark Cuban called the sell-off the “Great Unwind” in a tweet on Sunday, arguing crypto traders were forced to unwind their leveraged trades amid falling prices in the space.

“Traders borrow to buy Eth, used eth to borrow alt/stable coin, used that to LP a high APY Pair, took the SLPs and staked them to maxout yield. The minute Eth drops to their Tragic Number, they had to Unwind. Unstake, Remove Liqudity, Repay,” Cuban wrote.

Some bitcoin experts believe the recent downturn may be over, however. Pankaj Balani, the CEO of Delta Exchange, a crypto derivatives exchange, told Insider that he believes “most of the leverage is out of the system now and bitcoin should start to form a base here.”

On the other hand, Paul Krugman, a noted economist and Nobel Laureate, published an op-ed titled “Technobabble, Libertarian Derp and Bitcoin” last week where he compared the crypto craze to “a natural Ponzi scheme.”

Krugman was roundly mocked by the crypto community for his comments, with bitcoiners pointing out the economist had previously said the fax machine was going to have as much impact on the economy as the internet.

“By 2005 or so, it will become clear that the Internet’s impact on the economy has been no greater than the fax machine’s,” Krugman wrote in a 1998 Red Herring article.

In other bearish news, JP Morgan analysts said in a note to clients on Monday that it was “too early to call the end of the recent bitcoin downtrend.”

The JPMorgan team said there is “a significant risk of further de-risking given continued decay in our lookback period momentum signal and given the absence of buying in either the bitcoin fund space or the regulated bitcoin futures space.”

Despite the falling price of crypto assets, over the weekend bitcoiners celebrated Bitcoin Pizza Day.

The holiday pays homage to Laszlo Hanyecz, who paid for two pizzas using 10,000 bitcoins in the first-ever transaction using the currency 11 years ago.

At the time the 10,000 bitcoins were worth roughly $41, now they are worth more than $3.8 billion.

Read more: ‘Wolf of All Streets’ crypto trader Scott Melker breaks down his strategy for making money using ‘HODLing’ and 100X trade opportunities – and shares 5 under-the-radar tokens he thinks could explode

Read the original article on Business Insider

Billionaire Mark Cuban says he holds 3,250 dogecoins he bought with his son – and earns added inflows from Dallas Mavericks sales

Mark Cuban
Mark Cuban.

Mark Cuban owns 3,250 dogecoins he bought with his 11-year-old son, the tech billionaire said in a tweet on Saturday.

On top of that, he said, he receives inflows of dogecoin from ticket and merchandise sales for the Dallas Mavericks, the NBA team he owns. In March, Cuban said his NBA team was the largest dogecoin merchant in the world.

The “Shark Tank” host said that since dogecoin is mined on a fixed schedule it could become a feasible payment mechanism.

Screenshot 2021 05 17 at 10.32.41
“Doge has ‘deterministic inflation’ meaning the amount of inflation is defined,” Cuban said in a tweet on Saturday. “There is no uncertainty as to the amount of created and it’s inflation percentage. Which could allow it to grow as a valid payment mechanism. The unknown is whether enough people will use it this way.”

Read more: ‘Wolf of All Streets’ crypto trader Scott Melker breaks down his strategy for making money using ‘HODLing’ and 100-times trade opportunities – and shares 5 under-the-radar tokens he thinks could explode

Cuban, known for investing in unique businesses without relying too much on the stock market, has predicted that stocks will someday be traded via blockchain.

He acknowledged on Saturday that while dogecoin may not find support over the long term, users could take it in a new direction from its original intention.

“Like all generational technologies, it takes a generation to grow up,” he said. “Crypto is in the phase where users need to be educated and products and services need to be sold and deliver on their initial promises. Then, Crypto can mature to the point we wondered how we ever lived with out.”

Dogecoin was trading 5% lower on Monday, at $0.50, but it is up more than 10,000% this year. Cuban’s dogecoin holdings aside from the NBA team revenue would be worth about $1,690 as of Monday.

The meme-inspired digital asset has been under pressure over a series of events linked to the billionaire Tesla CEO Elon Musk. He recently suggested dogecoin could replace bitcoin payments for Tesla vehicles.

Dogecoin is one of the least stable cryptos on the market, according to Anthony Denier, the CEO of the trading platform Webull. “Since many people tie Doge to [Musk], any comments he makes about cryptos in general is going to affect Doge,” he said. “Also, bitcoin leads the crypto market, so for most cryptos, whichever way bitcoin moves, they follow.”

Read the original article on Business Insider

Billionaire investor Chris Sacca says he owns bitcoin and ether – and suggests crypto’s environmental costs will fuel clean-energy solutions

chris sacca
Chris Sacca.

  • Chris Sacca owns bitcoin, ethereum, and several other cryptocurrencies.
  • Lowercase Capital’s billionaire founder flagged crypto’s energy usage as a problem.
  • Sacca suggested the issue could drive innovation in renewable energy.
  • See more stories on Insider’s business page.

Billionaire investor Chris Sacca owns a bunch of cryptocurrencies including bitcoin and ether, and sees their environmental costs as a problem that could spark creative solutions.

“I own a broad basket ranging from early BTC/ETH to shitcoin lottery tickets,” he tweeted on Saturday. “The climate impact bums me out,” he continued. “But that is the market impetus for a lot of clean energy innovation.”

Sacca, the founder of Lowercase Capital, was an early investor in Uber, Twitter, and Instagram. He shifted his focus from venture capital to tackling the climate crisis, voter suppression, and other issues in early 2017.

The billionaire’s latest comments were prompted by Mark Cuban, his former “Shark Tank” colleague and a champion of dogecoin, tweeting that he always asks himself what coins can be used for.

Sacca was an early investor in bitcoin, and has been bullish on its prospects for years. “Bought bitcoin at $800,” he said in March 2014. The cryptocurrency now trades north of $40,000.

He predicted it would become “institutionally mainstream” in 2017. However, he described it as an “environmental disaster” in 2013 and again in 2017.

The surging energy costs of bitcoin mining are a hot-button issue in the crypto space. Tesla CEO Elon Musk reignited the debate last week when he said his electric-car company would no longer accept bitcoin for vehicle purchases, citing environmental reasons.

“I strongly believe in crypto, but it can’t drive a massive increase in fossil fuel use, especially coal,” he said.

Read the original article on Business Insider

Billionaire Mark Cuban says he holds 3,250 dogecoin that he bought with his son – and earns added inflows from Dallas Mavericks sales

Mark Cuban
Mark Cuban.

Mark Cuban owns 3,250 dogecoin that he bought with his 11-year-old son, the tech billionaire said in a tweet on Saturday.

On top of that, he said he receives an added inflow of dogecoin from Dallas Mavericks sales of tickets and merchandise. In March, Cuban said his NBA team is the “largest dogecoin merchant in the world.”

The “Shark Tank” host said since dogecoin is mined on a fixed schedule, it could grow to become a feasible payment mechanism.

Screenshot 2021 05 17 at 10.32.41

Read More: ‘Wolf of All Streets’ crypto trader Scott Melker breaks down his strategy for making money using ‘HODLing’ and 100-times trade opportunities – and shares 5 under-the-radar tokens he thinks could explode

Cuban, known for investing in unique businesses without relying too much on the stock market, has previously predicted stocks would someday be traded via blockchain.

He admitted dogecoin may not find support over the long-term, but there is potential for users to take it to a new direction from its original intention.

“Like all generational technologies, it takes a generation to grow up,” he said. “Crypto is in the phase where users need to be educated and products and services need to be sold and deliver on their initial promises. Then, crypto can mature to the point we wondered how we ever lived without.”

Dogecoin was last trading 5% lower on the day at 50 cents, but it is up more than 10,000% so far this year. Cuban’s dogecoin holdings, aside from the NBA team revenue, would be worth about $1,690 as of Monday.

The meme-inspired digital asset has been under pressure over a series of events linked to billionaire Elon Musk. But the Tesla boss has suggested it could be a replacement for bitcoin payments made to his electric vehicle-maker.

Dogecoin is one of the least stable cryptos on the market, according to Anthony Denier, CEO of trading platform Webull. “Since many people tie Doge to (Musk), any comments he makes about cryptos in general is going to affect Doge,” he said. “Also, bitcoin leads the crypto market, so for most cryptos, whichever way bitcoin moves, they follow.”

Read the original article on Business Insider

Crypto bulls challenge Elon Musk’s environmental concerns on bitcoin – but billionaire Mike Novogratz takes a softer stance

Elon Musk
Tesla CEO, Elon Musk.

The crypto community was swift to reject Elon Musk’s decision late on Wednesday to halt payment in bitcoin for Tesla vehicles due to environmental concerns, suggesting that renewable energy is largely used to mine the popular cryptocurrency.

“We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” Musk said in a tweet Wednesday.

Here’s how some bitcoin bulls reacted to Musk’s announcement:

“Ironic because no incremental energy is used in a #bitcoin transaction. The energy is used to secure the crypto-asset network, and the net impact on fossil fuel consumption over time will be negative, all things considered.” – MicroStrategy CEO Michael Saylor.

“Elon probably did not research how much energy is required to run other (non crypto) currencies that Tesla accepts.” – Binance CEO Changpeng Zhao.

“Elon … you realize that 75% of miners use renewable energy, right? This energy story has been debunked over and over again.” – Morgan Creek Digital co-founder Anthony Pompliano.

“When Elon realizes that bitcoin mining is actually pushing the renewable energy industry forward, he will refresh position and #bitcoin will moon.” – co-founder and president at crypto exchange Gemini Cameron Winklevoss.

“FWIW, Bitcoin mining is a massive subsidy for renewable energy.” – co-founder and CEO at Gemini Tyler Winklevoss.

“We at Mavs.com will continue to accept BTC/Eth/Doge because we know that replacing gold as a store of value will help the environment and shrinking big bank and coin usage will benefit society and the environment.” – Dallas Mavericks owner and investor Mark Cuban.

Novogratz and El-Erian were less at odds with Musk:

“My take on @elonmusk is to take him at his word. He cares about the environment and he is using his considerable influence to push BTC mining towards a greener future. Lots of companies in the space have already been working on this. Stay tuned. And buy $BTC.” – Galaxy Digital CEO Mike Novogratz.

“This unexpected development has placed pressure on #Bitcoin. @elonmusk and @Tesla were front runners in the process of private sector adoption of the #crypto #currency, opening the way for others to follow. The reasons for this apparent U-turn are not yet clear.” – Allianz chief economist and president of Queens’ College, Cambridge University Mohamed El-Erian.

Musk appears to have changed his stance

The self-proclaimed “Technoking” had only recently agreed with Twitter boss Jack Dorsey by saying bitcoin “incentivizes” renewable energy. Dorsey’s Square payments company and Cathie Wood’s Ark Invest asset management firm had collaborated on research that suggested bitcoin mining isn’t environmentally-damaging.

Screenshot 2021 05 13 at 08.34.00

He now says Tesla will look at using other cryptocurrencies that take up less than 1% of bitcoin’s energy use for transactions.

Bitcoin dropped as much as 15% at one point following Musk’s tweet to trade around $46,350, but recovered to around $50,850 as of 3:45 a.m. ET on Thursday.

“In some capacity, distancing the brand from bitcoin could win some ESG love,” Chris Weston, head of research at Pepperstone Financial, said.

Read the original article on Business Insider

Mark Cuban explains why crypto is the future, especially as the world recovers from a generational pandemic

Mark Cuban.
Mark Cuban.

  • Mark Cuban said cryptocurrencies are the future, especially as the world recovers from a pandemic.
  • The billionaire outlined the two reasons why he thinks the country should shift to digital currencies.
  • Cuban is among the high-profile crypto bulls, and is a particularly vocal backer of meme-based dogecoin.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

As the cryptocurrency market continues to skyrocket – hitting a $1 trillion in February to double its market capitalization in just three months – enthusiasts such as Mark Cuban are increasing calls for the world to embrace digital and decentralized money.

Cryptocurrencies, the billionaire said, are the future, especially as the world recovers from once-in-a-generation pandemic.

On a podcast hosted by Actor Rob Lowe, Cuban outlined the two big reasons why he thinks the country should shift to digital currencies:

More access

The billionaire investor discussed the hurdles involving receiving and cashing stimulus checks faced by many Americans during the pandemic, whether the came via direct deposit or by mail. He also touched on the number of days banks need to clear the checks, pointing to the friction points still encountered when dealing with traditional financial institutions.

“The people who needed the money the most got it to slowest,” he told Lowe. “If everybody had a digital bank account, with or without digital coins, the money would just go just like that, right into your account from the Treasury, whenever there was a stimulus.”

Lower costs

The billionaire also added that transaction costs would drop significantly with digital assets.

While the cost of producing pennies, nickels, and dimes, is less than their actual value, the US Mint allocates billions of dollars yearly to produce these coins.

For the fiscal year last year, the bureau responsible for producing coinage for the US spent roughly $618 billion to produce all the coins combined, according to a Coin News report.

“Then there’s just the physical dealing with it for retailers, which is expensive, and for banks, which is expensive,” he said. “Then there’s the sanitary side.”

There are no cons to moving to digital currency, he said. The only problem is that people are resistant to change.

“Who wants to know what a digital wallet is, or wants to deal with setting up a new type of account?”

Read more: Fundstrat’s head of digital assets research walks us through his $100,000 and $10,500 year-end price targets for bitcoin and ether – and shares the 8 tokens he’s bullish on

The billionaire has long been an advocate of digital currencies. The Dallas Mavericks, which Cuban owns, began accepting the cryptocurrency as payment for tickets and merchandise earlier this year. He also suggested to TV host Ellen DeGeneres that she should allow the use of dogecoin as payment for her show’s merchandise.

Cryptocurrencies have soared in 2021 – with bitcoin rising 95% year to date, ether surging 380%, and dogecoin skyrocketing an astounding 13,000%.

This month, a non-profit called Digital Dollar Project announced that it will launch at least five pilot programs to test the viability of a US central bank digital currency over the next 12 months.

CBDCs, digital versions of banknotes, are meant to be more instantaneous and seamless thanks to digital processing. To date, a number of central banks have been exploring CBDCs spurred by a rapidly growing crypto space and competition from central banks around the world.

Read the original article on Business Insider

Most dogecoin enthusiasts wish Amazon would accept the meme coin as payment – and some believe it’s the new bitcoin, study shows

Dogecoin icon on phone

Dogecoin has been swept up in a crypto-buying mania that has seen its biggest advocate, Elon Musk, boost its price. Several online brokerages including Gemini and eToro have added the meme coin to their offerings, causing investors to flock in even greater numbers to the hot new crypto listing.

A recent study conducted by GamblersPick showed more than one in four people believe “dogecoin is the future,” and the same ratio expect it to hit $1 per coin sometime in 2021, from around $0.61 currently.

Most survey respondents said they wanted Amazon to accept dogecoin as payment. At the same time, about 41% said they didn’t want any retail stores to accept the joke-based currency. About one-third said they believe it’s the “next bitcoin,” showing that a vast majority don’t actually think it can overtake the most popular cryptocurrency.

Screenshot 2021 05 07 at 12.18.41

Amazon is reportedly expected to launch a digital currency that can be used on its own platform and marketplaces. The study showed that 64% of respondents would invest in such a currency if it were to be released.

Billionaire Elon Musk’s touting of dogecoin was initially met with concerns about whether his support is genuine, or a degree of fooling around. He recently said although the coin’s origins are awash with humor, it could become the future of cryptocurrencies. The Tesla boss has, however, said it would be “unwise” to invest too much.

But most survey respondents said they either approved of, or didn’t care about, Musk’s dogecoin-related promotions.

Entrepreneur Mark Cuban has backed the coin to the extent that he began accepting it as payment towards tickets and merchandise for his NBA basketball team, the Dallas Mavericks. But other investors like Mike Novogratz have warned of speculative risks attached to it.

2020 07 06T234811Z_510217792_NOCID_RTRMADP_3_NBA DALLAS MAVERICKS AT PHOENIX SUNS.JPG
Mark Cuban, owner of the NBA’s Dallas Mavericks.

On average, dogecoin investors expect to invest $227 in dogecoin in 2021. But if the currency hits $1 this year, that investment could be worth quite a lot as it is currently trading around $0.61 per coin. It is already up 12,000% year-to-date.

Some analysts say dogecoin’s record-setting rally is largely similar to the Reddit-fuelled GameStop saga. The same group of dogecoin traders seem to have also invested in Reddit stocks like GameStop, Blackberry, AMC, Nokia, and others.

The survey showed about half of the 1,001 respondents in the US regretted investing in Reddit-hyped stocks, while 40% rued their dogecoin investments.

“Dogecoin’s price rise demonstrates that cryptocurrencies are experiments in branding for financial assets, plugged directly into the craziness and creativity of the internet,” Philip Gradwell, chief economist at Chainalysis, said. “Dogecoin is a ‘self-aware’ meme. Its price is a function of how much attention dogecoin gets, which is currently a lot. There is a positive feedback loop: the higher the price, the more attention, the higher the price, and so on.”

More than 50% said they invested in dogecoin because they viewed it as an opportunity to get rich, rather than getting in for fun.

Ultimately it remains a bit like a game of chicken, according to David Kimberley, analyst at Freetrade. “People will want to hold on for as long as possible before dumping what they have and cashing out,” he said. “And you don’t want to be the one left asking ‘who left the Doge out?’ when that happens.”

Read the original article on Business Insider