Dogecoin and altcoins critiqued by Bloomberg analyst

Bitcoin Dominance Threatened by Inflated Crypto Market, Experts Warn

McGlone, Bloomberg Intelligence's chief commodity strategist, raises concerns over the risks in the crypto market. He highlights the proliferation of "2.4 million so-called cryptocurrencies," which he dubs "Bitcoin wannabes."

McGlone cites Dogecoin, a $68 billion market cap cryptocurrency, as an example of these "wannabes." He compares its rapid growth to the dot-com bubble, suggesting that similar collapses could befall many of these cryptocurrencies.

"Dogecoin is one of the 2.4 million so-called #cryptocurrencies that future generations may look back upon akin to the dot-com bubble." - McGlone

Unlimited Supply Cryptos and the Dot-Com Bubble Analogy

McGlone criticizes "unlimited supply cryptos," including Dogecoin and other altcoins, for their potential disadvantages compared to Bitcoin, which has a capped supply of 21 million. He suggests that these cryptos may struggle to challenge Bitcoin as a store of value.

His dot-com bubble analogy further reinforces his concerns. He believes that future generations will view the abundance of meme coins and altcoins with skepticism, similar to how the dot-com bubble burst in the late 1990s.

Dogecoin's Market Cap and Speculative Concerns

Dogecoin's recent market capitalization of $55 billion has matched that of Bank of New York Mellon (BNY Mellon). However, McGlone emphasizes that BNY Mellon generates real earnings, unlike Dogecoin, which is purely speculative with no intrinsic value.

Peter Brandt, a renowned financial trader, echoes McGlone's concerns. He warns that speculative digital assets pose significant risks to investors, with many employing excessive leverage for short-term gains in altcoins and meme coins.

In the event of a market correction, Brandt predicts that Bitcoin could lose half its value, altcoins up to 90%, and meme coins could be wiped out entirely due to their lack of real-world utility.

As of this writing, Bitcoin trades at $102,000 and Dogecoin at $0.38. The overall cryptocurrency market cap has increased by 2% to $3.66 Trillion.