Photo Courtesy of The Verge
With the recent outbreak of stocks, it’s safe to say people are trying to get involved before they miss out on easy money. The thought of investing a part of your money into a company that can potentially have a huge stock increase drives people to learn more about stocks and how they work. Problem is, since everyone is in a rush not many people know jack about stocks and how the market works. People are spreading false information, manipulating people to buy shares of a business for their own benefit, or just flat out gambling.
Earlier this week on January 25, there was a huge stock market boom in several companies being, AMC, GameStop, and Blackberry started by Keith Gill, a reddit user who started a “movement” to invest in Gamestop’s stock market which would then boost their stock entirely. Sooner than later, many people jumped on the train and started investing in companies that were struggling to try and make a profit off the money they invested.
This then led to people looking into cryptocurrency as a way to invest their money and make a profit. One of the crypto currencies is known as Dogecoin which is in reference to the meme “doge.” Dogecoin originally started off as a joke and in a matter of weeks, people are treating it as an actual investment to make money from.
This is where the problem occurs. With many of people not fully aware of stocks and cryptocurrency, there is a lot of misconception on what they’re exactly getting themselves into. Many people think they can invest $50 and wake up the next morning with $1,000, but that’s not the case with Dogecoin.
On the night of January 28th, Dogecoin peaked at around $0.08 which is way higher than their market value. This brought hope to many investors as they were speculating that it would continue rise to $0.10 which would make them a ton of money. As of January 29, 7:24pm, Dogecoin is at $0.03504 which is way lower than the expected value was supposed to be at, crushing any chance of another rise.
Crypto fluctuates daily depending on many people invest, how much people invest, how many shares its worth, etc. and with little to no experience not knowing the simplest of information can go left quickly. There are many users on twitter who are telling people what to do, how much to invest, and when to buy and sell stock but at that point they’re just guessing. Stocks is a confusing concept to understand if you are just getting into it and relying on your instincts to try and make a profit out of it isn’t going to serve any purpose in the long run especially not right now when stock knowledge is key.
Then again, I can see where the conflicting occurs. People see a topic trending on Twitter and they immediately pursuit to action by getting influenced by many other people, it’s deceiving I get that. Even Elon Musk, one of the most brilliant and successful people in the world hinted a tweet about Dogecoin which then turned the heads of many people.
However, nothing outweighs knowledge. Without fully understanding the concept of something especially something to do with money, its going to cost if you give in to media. Moral of the story: think before you do.