When people tell me bitcoin is a bubble, I normally just shake my head wearily and say: “No. It’s the future. You’re just saying it’s a bubble cos you don’t own any. A bubble is a bull market in which you don’t have a position.”

Then along came meme coins – the likes of Doge and Shiba Inu. They don’t seem to do anything – they’re just a laugh. And yet they’ve created multi-millionaires and billionaires.

Somebody showed me a wallet the other day. Just 400 days ago, the wallet’s owner bought $8,000 of Shiba Inu. They didn’t sell. Today those coins are worth over $5bn. 

Now that really is a bubble! How I wish I had had a position.

A mild defence of meme investing

The thing about meme coins is that everyone seems to know they are nonsense, and yet they still get on board for the ride. When they crash, many post their losses on social media. Even that’s become a meme now – “loss porn” – and so people can get attention that way.

Trading a hype cycle is a perfectly legitimate and effective method of speculating in an asset. Buy when nobody cares (or when there’s “blood on the streets”  – us old timers even have our own expressions for it), and sell during the euphoria, when the mass media is all over it.

Meme coins follow exactly the same psychological journey, only more so.

“It’s just gambling”, say some. Well, yes. But isn’t most speculation? If you can do it in some informed way that gives you an edge over everyone else –…

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