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 a potential for massive returns, while established figures like Bitcoin evangelist Adam Back scoff at them as a passing fad.
A perilous journey on the propaganda train
Meme coins have taken the cryptocurrency market by storm in recent months. Tokens like Baby and Dogs Cryptocurrencies have seen their value soar, thanks to online communities and celebrity endorsements. Influencer Iggy Azalea’s promotion of her cryptocurrency exemplifies this trend.
Analyst Murad Mahmudov sees potential in this area, but warns against speculative small caps Meme Coins – Mainly small startups in the crypto world.
This speculative frenzy is not without its critics. Ethereum co-founder Vitalik Buterin echoes Back’s concerns, claiming that many Meme coins lack real-world applications. Or innovative technology. He wonders how viable it is in the long run.
Reminder, zoom out. Previous uptrends also had half a dozen -30% downtrends. We’re now at around -26% (-27% previously).
In fact, recent declines seem to be shallower, but people forget the normal bull market pattern. Don’t panic, buy the dip or buy a little bit of $CMSTR with… pic.twitter.com/vBOjFN1TOn
— Adam Back (@adam3us) July 5, 2024
Back, who was mentioned in the original Bitcoin white paper, has a long history of dismissing meme coins with characteristic bluntness. In 2021, he took aim at both meme creators and their creations.
The so-called explosion has broken out again. “Stupid Miners” Saying they are so bad at making memes it’s unclear why.
The co-founder of blockchain technology firm Blockstream also dampened the hype surrounding expensive NFTs like EtherRock, which has sold for millions of dollars despite being, in his words, “a low-resolution animated gif with no value.”
Is Bitcoin the only “investment grade” cryptocurrency?
Buck’s position is clear: Bitcoin is the only cryptocurrency with real investment potential. He views meme coins and most alternative cryptocurrencies (altcoins) with suspicion.
This unwavering support for Bitcoin is nothing new. Back has repeatedly called Bitcoin “too cheap,” even when it was hovering around $66,720 in April of this year.
Back believes the market is undervaluing Bitcoin as a digital store of value, similar to gold. Back also argues that some bear markets, such as the recent price drop that saw Bitcoin fall to a five-month low, are necessary for investors to truly understand Bitcoin’s long-term value.
Battle of Memes and Basics
The clash between meme coins and established cryptocurrencies like Bitcoin reflects a deeper debate about the future of digital assets. Meme coins represent a gamble on cultural relevance and community power.
Their success depends on maintaining the hype and attracting new investors. Bitcoin, on the other hand, depends on its established technology and its growing adoption as a legitimate financial instrument.
Featured image from WSJ, chart from TradingView
