In contrast to the global COVID-19 pandemic of 2020, 2021 is quickly becoming the year of the meme investor. Meme stocks and meme cryptocurrencies have taken the place of Wall Street’s once-reliable and trusty trades. Instead, they’ve been replaced by surreal and absurd stocks and cryptocurrencies that have been vetted through social media. These changes have had a profound impact on the investing landscape in modern times.
What is Meme Crypto and What Role Does It Play in Tomorrow’s Trading?
While the demand for these recently popular meme trades has certainly risen, this shouldn’t come as a surprise to anyone who has been paying attention. In recent years, memes (images used to describe a thought or a mood) have also gained in popularity.
A generation of traders in their 20s and 30s would eventually take this irreverent form of communication and find a way to turn it into an investment. Yet despite their steady rise, meme stocks and cryptos remain a mystery to those who aren’t in the know.
What is a meme security, and how does it work?
The question is, what are these meme securities, and why have they suddenly become the preferred gambling option for the online age? Are they still relevant in the months to come? Like the “normal” stock market, the answers to these questions aren’t exactly set in stone.
A little light on this bizarre turn of events in stock and crypto trading will help us better understand their origins and what it means for the rest of us traders, though.
An Introduction To Memes
What a meme is in its most literal sense is simply the transference of ideas or concepts from one individual to another. As a result of being coined by evolutionary biologist and author Richard Dawkins in 1976, the word has evolved over time. Now, memes are graphics or images that represent a shared sentiment.
Mmes, which have a propensity for going viral, tend to spread quickly among internet users. The meme concept, on the other hand, dates back much further than the term itself, which was coined only fifty years ago.
How do I find the first officially sanctioned meme?
However, memes have been around for much longer than the novelty 3D animation “dancing baby.” Think of the hand-clapping games that girls play in schoolyards. Those are some of the most famous memes.
Isn’t “memento mori” (or, literally, “remember that you’re going to die”) the tendency of artists to include macabre relics such as skulls and ghostly apparitions in their art? These are memes as well. Memes are everywhere, just like humans themselves.
Even though it appears to be a relatively new internet invention, the world wide web should not be credited with its inception, but rather, with its spread.
GME is but a distant memory.
Most WSB traders refer to one another as “smooth brained apes” today, a reference to the GME. Having purchased the investment at its peak, many people were left holding the bag. Many others, on the other hand, profited handsomely from their timing.
Since then, GME’s short squeeze has had a lasting impact on traders. “Meme stock” was born, of course.
Spotlight On Meme Cryptos of the Day
An eager public turned its attention to the cryptocurrency market shortly after the Wall Street Bets and GameStop fiasco.
While Bitcoin (BTC) and Litecoin (LTC) dominate the majority of the crypto market, smaller, niche cryptocurrencies have managed to carve out a place for themselves on the trading platforms.
From meme stocks, these young traders jumped right into meme cryptocurrencies.
Whence arose the concept of cryptocurrencies?
The concept of cryptocurrencies predates Bitcoin, even if Bitcoin was the first to take off and flourish. With “eCash,” an American named David Chaum introduced the concept of a cryptographic currency system in 1983. Stuart Haber and W. Scott Stornetta introduced blockchain technology in 1991 as a means to document immutable timestamps.
What about the regulation of the industry?
Since the Chinese government hasn’t issued any official regulations on bitcoin or any of the other cryptocurrencies, the market has continued to decline significantly. What will happen if cryptocurrency regulation kills off both meme cryptos and legitimate ones? However, the current climate should not come as a surprise, given that this is not the first time the Chinese government has expressed strong opinions about cryptography.
Uncertainty does exist, however. Due to these discussions, the cryptocurrency market, despite its current downturn, has remained relatively unaffected. There’s still a lot of momentum behind it, just as there was before.
Is it safe to say that meme cryptos are here to stay?
There is a lot of uncertainty surrounding the future viability of meme stocks, which makes it understandable to wonder whether they’re just another passing trend.
These currencies aren’t going away anytime soon even though they are a relatively new trading platform. Since they are still considered relevant by many, this is likely one of the main reasons for their success. But there is still a distinct difference between the more legitimate cryptocurrencies and the trendy meme coins, despite their similarities.
Who is the market maker?
Unfortunately, such a question cannot be easily answered. These cryptos appear to be attracting a lot of attention from buyers. As many investors are notoriously fickle, it’s possible that this will change in the future.
Uncertainty surrounds the future of bitcoin regardless of whether one holds a modest position or aspires to become SHIB millionaire.
These meme cryptos are in high demand at the moment, and the investment capital needed to get started is surprisingly low. A meme crypto millionaire may already exist, and he or she may not even be aware of it.