Give The Doge A Bone
Welcome one and all to the Greatest show in finance!
I’m your ringmaster, Mr. Great Stuff … and today is Reader Feedback day.
We’ve scoured the Great Stuff inbox for the most intriguing and depraved emails we could find. Today, we answer your questions and share your rants on everything from Dogecoin to hydrogen fuel cells to Saturday Night Live humor. And, yes, that last one is stock market related, I swear.
Wanna get in on the fun? Well … you’re obviously too late to make today’s edition, so why not drop us a line at GreatStuffToday@BanyanHill.com and throw your hat in the ring for next Thursday’s issue? It’s mostly painless. I promise.
Anyway, without further ado, here is today’s main attraction — spoiler alert, it’s a two-for-one dog show today:
I need to point out an error in your recent letter “Don’t Do The Dogecoin Hustle.” Full transparency, yes, I own some dogecoin. I have bought and sold Dogecoin since December 2020.
Now back to my point. You claimed that “no one currently accepts it as payment.”
This is not true. The Oakland A’s MLB baseball team recently sold tickets accepting Dogecoin. The Dallas Mavericks (owned by Mark Cuban, a previous Dogecoin skeptic turned believer) accept it as payment for tickets and merchandise online…
Dogecoin has a built-in inflation of coins. It adds 5 billion coins per year (currently about 130 billion dogecoins in existence). As time goes on, the rate of inflation actually decreases with the total number of coins in existence. This keeps Doge at a reasonable cost for the common man, woman or child to buy. It will eventually keep pace with the average global growth rate of about 3%.
There. Done. Rant over. No, I have not been drinking the Dogecoin Kool-Aid. (Okay, maybe sipping it a bit). I look forward to your (sarcastic I am sure) reply. — John R.
Great to hear from you, John! Thanks for writing in … even if it’s just to tell me I’m wrong. And I was wrong.
The number of places accepting Dogecoin (DOGE) as payment is non-zero, as you say.
So, the fifth least valuable MLB team and an NBA team backed by an attention-seeking multibillionaire both accept dogecoin. I’m not sure if either point is relevant — you can draw your own conclusions — but it is interesting.
What’s also interesting is John’s second point. Dogecoin is not capped in quantity like Bitcoin (BTC) — only 21 million bitcoins will ever exist. However, the rate of dogecoin mining continues to slow as more come to market.
It’s a math thing that all cryptocurrencies face. The more you find or mine, the harder it becomes to mine more. If you’re confused on this point, don’t worry … everyone is. People have written volumes on crypto mining, but if you want a nice “explain it like I’m five” breakdown, check out Investopedia’s article here.
The point is that the number of dogecoins entering circulation will eventually slow to a trickle about on par with inflation — or about 3% per year.
So, while dogecoin started out as a meme (or joke) cryptocurrency, it could have potential … eventually. Right now, however, it’s just too volatile for me to consciously recommend as a serious investment. But you do you, John! Thanks again for writing in.
Dogecoin Part 2, Angry Boogaloo
I think y’all give good advice for Rich People who think getting into a $60 stock with a lot of shares is a good idea. But as a small business owner and someone who was never a preferred investor, what choice for I have really? Too poor for those stocks, who saw the rise of Google and Uber and couldn’t do a damn thing about it. I never achieved preferred investor status of someone with 200k to invest.
I resent your opinion of Doge. Y’all didn’t predict it but now want to bash it in two letters I just received. I’m average of 6 cents 50k shares in holding. Y’all didn’t predict its rise at all but want to destroy it now that it’s having a bear day.
Reminder: After 4/20, it took 10 days to get back to normal and then rise. Just because SNL was bad. As someone who just invested 3k and have seen it rise to 36k and am not on your guy’s level, I resent your come-lately to the party bear-bashing…
So maybe like many financial advisors, y’all are like used car salesman and just guessing … pouncing on poor people that’s what you are doing to bash the people’s coin. — Jeff B.
Much wow. Such vitriol. So angsty.
OK, first of all, let me just say … thank you for writing in, Jeff! And congratulations on your massive gains. I’m being serious here. Turning $3,000 into $36,000 is just impressive! You are the Dogeman!
But, you’re clearly angry … so let me clear a few things up:
I don’t have any skin in this game. I don’t own dogecoin, and the SEC won’t let me since I write about it regularly. As for bear-bashing … should I have guessed that Elon Musk would pump Dogecoin into the stratosphere with a few tweets?
Maybe … but the guy is so fickle, who knows what he’s going to do next? I mean, he just bashed bitcoin this morning. Who saw that coming? Who needs that kind of uncertainty in their investments?
Your experience with Dogecoin is amazing. Simply amazing. But there are people who got in late that have lost more than you gained.
When I advised against buying dogecoin earlier this week, I was trying to prevent late investors from losing money. It wasn’t about selling you a used car or hurting poor investors — on the contrary. I was trying to protect Great Stuff readers. I mean, if I’m a used car salesman, wouldn’t I just slap the Dogecoin roof and tell you to buy while it’s hot?
Bully for you that you got in at $0.06. But Dogecoin was above $0.60 when I “bear bashed” it … and it’s now closer to $0.40. My warning was spot-on for that point in time … just saying.
Jeff, the truth hurts. Not as much as jumping on a bicycle without a seat, but it hurts. Not everyone is going to get a 1,100% return by investing in Dogecoin — especially not now. The doge is out of the bag, so to speak.
Finally, I don’t know where you got the idea that you need $200,000 to be a “preferred investor.” This is Great Stuff, sir. You’re all preferred investors to me. I don’t care how much money you have to invest, as long as you keep reading and sharing your stories with me.
Good luck, Jeff. I sincerely hope your Dogecoin investment doesn’t go the way I think it’s going to go.
I don’t know about you, but I’m getting a little tired of the “Bitcoin this” and “Dogecoin that” … the volatility is insane, and I don’t have enough Tums or Pepto for these wild swings. Why risk losing everything (again), when you can invest in the emerging tech behind this trend?
Paul has found a company that makes a type of software that is essential to every cryptocurrency. This company just smashed through first-quarter earnings forecasts and left analyst chins on the floor all over Wall Street.
If you didn’t write in and kept all those stewing thoughts to yourself, first breathe … then drop us a line and rant/rave away. GreatStuffToday@BanyanHill.com.You know the drill: If you wrote in for this week’s (or last week’s) Reader Feedback, thank you!
As you’ve seen, it takes all kinds of dialogues and diatribes to make one heaping helping of Reader Feedback. Dig it and dig in!
Good Evening, I would like to know when does the merging will take place? Since first recommendation, I’ve been holding and not planning to sell until never. Thanks for your help. You are very informative and helpful.
Thank you, — Nelson
Sup, Nelson! (Points: Ha! Ha!)
Thank you for writing in … and presumably reading Great Stuff on the regular.
So far, we’re just killing time and twiddling our thumbs waiting on Hyzon and Decarbonization Plus Acquisition (Nasdaq: DCRB). Hyzon’s board voted to approve the merger … but no date has been set yet. If that tight-lipped-ness is killing you, welcome to the party!
Hyzon expects the merger to be completed sometime in the second quarter, which means we have all summer to stew on the potential news. So, keep on holding, Nelson, and I’ll let you know if any news breaks through the radio silence.
Built For Speed
Greetings Mr. Great Stuff,
My older bro and I are both (retired — YEAH!!) chemical engineers and have been discussing the likelihood of widespread hydrogen fuel cell adoption for passenger vehicles. Older Bro just made an interesting comment to which I would like to hear your response.
He pointed out that the stellar acceleration afforded by battery-powered EV’s is one of the things that the public really seems to like. Where do HFC-powered vehicles shake out in this attribute? A zero to 60 time of 20 seconds may cut it for a forklift, but Joe Leadfoot will not be amused.
Thanks, and keep the semi-obscure music references coming! Although given our age bracket, anything post-1980’s is pretty much wasted on us. — Jeff the Weeshump
Nothing post-1980’s?! Jeff, you’re gonna rob yourself of the bulk of the ‘90s alt-rock and hip-hop scenes? That’s not very cash money of you…
Anyway, sorry about that … hydrogen cars! Yes, of course, we’re still extremely early to the hydrogen electric vehicle (EV) market. This is a good thing for investing, but not always for the average consumer — emphasis on the “average consumer” part.
I’m sure you’ve already looked, but for everyone following along at home … we, the people, really only have three choices from the big-wig automakers right now.
Of those, Honda’s Clarity apparently goes from zero to 60 in 7.7 seconds — which, depending on the car you’re already used to, will feel underwhelming … or right about “normal.” Your hot-shoe won’t really burn down the avenue in this sucker, sorry.
It’s also about the same acceleration that GM’s EV1 had when the EV market was just kicking off. And within the decade, the Musk man cometh … and ridiculously improved battery-powered performance.
It’ll take time. But hydrogen EVs will follow the same development path as regular EVs right now. Because they’re … pretty much the same. Fuel cells in EVs work exactly like batteries. You have the same electric motors powered by electricity — it’s just coming from a fuel cell instead of a battery.
The only power limitation is how much electricity the fuel cell can put out, and right now, that’s pretty much the same output as a lithium-ion battery.
Plus, this is Honda we’re talking about here — you know 18 bajillion other models are on deck to follow this guinea pig. And eventually, someone’s gonna come up with some funky-looking hydrogen-powered roadster that’d satisfy Joe Leadfoot … i.e, me.
That it’s … big? Oh, Pfizer (NYSE: PFE) … oh, you are so big! So absolutely huge! Gosh, we’re all really impressed down here, I can tell you!
I mean, everything about Pfizer is Big Pharma. It’s a $221.4 billion drugmaker and vaccine maker. Its COVID-19 vaccine is just another cash cow in the barn.
Pfizer’s drug catalog is diverse enough that it’d make Keith Richards weep. Its pipeline of drug development literally has dozens of new projects and products in testing — constantly.
Can you say “recurring revenue?” Course you can! No surprise, Pfizer also has a considerable amount of influence (read: cash) to throw around … which I think might’ve been your question’s original intent.
I think Saturday Night Live should do a Rosanne Rosannadanna bit on chips. It would go something like this:
What’s all this talk about a shortage of chips? I went to the store today, and there are shelves filled with chips. There are plain chips, barbecue chips, onion chips, jalapeño chips, tortilla chips, and chips I’ve never heard of.
Rosanna they’re not talking about chips you eat, they’re talking about chips for cars. Never mind. — Dick K.
Dick, you ignorant [redacted] … everyone knows that while the old school Saturday Night Live is the best, you just can’t air that stuff anymore. It’s called a sense of humor, Dick, and more than a few people seem to have lost their way on that front. I wish I had bought put options on humor back in the ‘80s. I’d be a rich, rich man right now…
But I digress. Similar to Justin Timberlake, I’m trying to bring humor back, but I’ve got this investing job on the side, you see. I should probably talk about chips here, but I think I’ve already spoken my mind enough on that.
The second half of this year will tell on semiconductor production. AMD doesn’t seem worried … so I’m not worried. Oh, and I’m tucking away your second email for a super-secret surprise for you Great Ones this weekend… Don’t tell anyone though, Capisce? Y’all will just have to stay tuned to find out on Saturday.
In the meantime, why don’t you make sure your voice is hear amid the masses? GreatStuffToday@BanyanHill.com. Thanks to all y’all who wrote in this week, and we’ll catch you right here again tomorrow!
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Until next time, stay Great!
Editor, Great Stuff