What the irrational price of dogecoin says about crypto investors
Unlike bitcoin or GameStop stock, dogecoin — a literal joke of a cryptocurrency — is not supply-constrained. If you want more of it, you can mine it — and then, presumably, sell it, given the profit margin of about 57%.
Why it matters: The irrational price rises in cryptocurrencies like dogecoin perhaps help explain why 62% of crypto investors, including 58% of investors with less than $10,000 in crypto investments, expect that they will get rich from their investments in cryptocurrency.
- Only 18% of crypto investors think it "unlikely" that their activity will make them rich.
The big picture: While most investment advice says that wealthier people can afford to take on more risk, that might not be happening in crypto.
- Driving the news: 30% of Black investors own cryptocurrency, partly thanks to Clubhouse groups like Black Bitcoin Billionaires.
- Tani Chambers, of Black Women Who Invest, told Bloomberg that "We have to take some high risks and make the investments that maybe are a little bit more risky than conservative because we are playing catch-up."