Meme coins spark debate in the crypto community, with some seeing potential for profit and others, like Adam Back, dismissing them as a passing fad.
The advantages of meme coins, or digital currencies based on online jokes and pop culture references, are debated in the cryptocurrency community. While some celebrate the possibility of huge profits, others, such as Bitcoin enthusiast Adam Back, mock them and refer to them as a fleeting fad.
A Dangerous Trip On The Hype Train
In recent months, meme currencies have swept the cryptocurrency market. The value of tokens such as Dogwifhat and Pepe has increased due to internet communities and celebrity endorsements. The promotion of her meme coin by influencer Iggy Azalea is a prime example of this trend.
Though he cautions against extremely speculative microcap meme coins—basically, little enterprises in the cryptocurrency world—analyst Murad Mahmudov sees potential in this market.
Many disagree with this speculative frenzy. Back’s worries are echoed by Ethereum co-founder Vitalik Buterin, who claims that many meme currencies lack cutting-edge technology or practical uses. He doubts their sustainability in the long run.
Back, notably cited in the first Bitcoin whitepaper, has a reputation for bluntly disparaging meme coins. He attacked the meme creators and their works in 2021.
Back attacked the so-called “shit-coiners,” claiming that it’s unclear why they’re bad at creating memes.
The co-founder of the blockchain technology startup Blockstream further ended the unrest around pricey meme-based NFTs like EtherRock, which he described as “a low-resolution gif that has no merit” and sold for millions of dollars.
The Only “Investment Grade” Cryptocurrency Is Bitcoin?
Back is adamant that the only cryptocurrency with real investment potential is Bitcoin. He has doubts about meme coins and the majority of other cryptocurrencies, or altcoins.
This steadfast backing of Bitcoin is hardly brand-new. Even though the price of Bitcoin was circling $66,720 in April of this year, Back has termed it “super cheap” on multiple occasions.
He thinks that the potential of Bitcoin to function as a digital gold standard is underappreciated by the market. Back goes on to say that for investors to comprehend the long-term value proposition of Bitcoin, they must experience a few bear markets, such as the recent price declines that sent the cryptocurrency down to a five-month low.
A Fight Between Fundamentals And Memes
There’s a broader argument about the future of digital assets, which is reflected in the conflict between meme coins and more established cryptocurrencies like Bitcoin. Meme coins are a bet on the strength of the community and cultural relevance.
Keeping up the excitement and luring new investors are critical to their success. Conversely, Bitcoin is based on its proven technology and expanding user base as a reliable financial tool.
