Even Fun-Loving Dogecoin Can’t Avoid the Russian Headwind

Just a few days ago, Dogecoin (DOGE-USD) investors had much more mundane things to worry about than they do today. Back then, all eyes were focused on a tweet that fast-food giant McDonald’s (NYSE:MCD) issued, which suggested that “something is common.”

Dogecoin Cryptocurrency
Source: Orpheus FX / Shutterstock.com

The social media post featured a picture of a blurry all-terrain vehicle and an even obscurer image of what appeared to be the Dogecoin logo. Of course, with the cryptocurrency community eager for any opportunities for mainstream integration, the tweet sent DOGE rocketing higher.

Of course, Dogecoin fans then tuned into the Super Bowl, during which McDonald’s promised to reveal what the big development was. Initially, proponents of the meme coin assumed that the fast-food leader would accept DOGE as payment.

Unfortunately, when the commercial in question finally appeared, it had nothing to do with Dogecoin at all. Thus, the grandiose idea that one of the most iconic American companies would accept the fun-loving crypto coin immediately evaporated.

But perhaps the ensuing disappointment didn’t last too long. After all, DOGE fans can always console themselves with what usually drives the price of their favorite digital asset: not-so-cryptic messages from everyone’s favorite tech entrepreneur, Elon Musk.

However, this time around is a little bit different. All of us — equity investors, crypto traders, real estate speculators — must now pay attention to another name, Russian President Vladimir Putin.

Dogecoin Dragged Into the Russian Doghouse

Hang around multiple circles of evangelicalism and you’ll eventually encounter speculation that Vladimir Putin is the antichrist. Other theories — this one published on The Washington Post — suggests that the Russian leader could be a rival to the dark prince.

Whatever the case, I’m sensing that folks are getting a little tired of the Kremlin’s antics. Over the last several days, Russia has managed to allegedly launch cyberattacks, bring the Olympic Games into disrepute and basically bring the globe to the cusp of World War III.

I get it. Russia wants to invade Ukraine, which is not exactly the world’s most important country economically. However, after suffering a chaotic pullout from Afghanistan, U.S. credibility hangs on a delicate balance. Being the evil genius that he is, Putin probably saw the opportunity and decided to prod. The thing is, the U.S. can’t just let such bad-faith actions slide.

None of this has anything to do with Dogecoin or cryptos in general. Sadly, the issue is that Russian belligerence is a critical pathway vulnerability for almost every asset class, save those investments that could theoretically rise from increased tensions (i.e., defense stocks).

What do I mean by critical pathway vulnerability? Suppose a commercial airliner runs out of peanuts to serve its passengers. That alone isn’t going to bring the plane down. Merely, the flight attendants can exercise diplomacy, maybe offer an alternative and the problem is resolved. A midair peanut shortage represents a non-critical pathway.

Now, let’s assume something strikes the airliner and a wing falls off. That would be a devastating impact on a critical pathway, meaning that in such a scenario, it wouldn’t matter how good the pilots flying the plane are: you lose a wing, you’re done.

It’s the same with Dogecoin.

The Jokes Aren’t Funny Anymore

Dogecoin fans can yell and scream all they want about their decentralized protocol and their thriving digital ecosystem. They can throw in as many blockchain magic words as they wish, and even references to the metaverse.

It doesn’t matter. If Putin decides to invade Ukraine, it could set off a cataclysmic series of events, from soaring consumer prices to global economic instability to even armed conflict in a bid to prevent China from getting any strange ideas about Taiwan.

Naturally, I’m hoping along with every other rational person that there’s a peaceful diplomatic solution to this mess. It’s just that I’m not sure if that’s possible. Putin pushed himself into such a position that pulling out would make him look weak.

Let’s hope he’s architecting the most dangerous trolling session ever. But right now, the situation is no laughing matter, even for fun-loving Dogecoin.

On the date of publication, Josh Enomoto held a LONG position in DOGE. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.


Article printed from InvestorPlace Media, https://investorplace.com/2022/02/fun-loving-dogecoin-cant-avoid-russian-headwind/.

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