“Mad Money” financial expert Jim Cramer recently suggested that young people are driving the price of Dogecoin in recent days.
Cramer said young people are downloading the Robinhood app, which allows them to buy and trade cryptocurrencies like Dogecoin and Ethereum.
- “I think people who are on Robinhood are buying Dogecoin,” he said. “For a half-hour on Saturday night, Robinhood crashed Dogecoin. I think young investors are buying, typically, Ethereum. They’re buying Ethereum very heavily. They are already in a lot of the Nasdaq stocks.”
Robinhood and Dogecoin
Indeed, the Robinhood app legit crashed when people began buying and selling their Dogecoin stock Saturday night after Tesla CEO Elon Musk’s appearance on “Saturday Night Live.” And this isn’t the first time it’s crashed because of Doge. Back on May 4, the app crashed because of a massive Dogecoin spike, as I wrote for the Deseret News.
There has been some speculation that Robinhood is a Dogecoin “whale,” meaning that it holds a huge investment in the app and dictates the market, as I explained for the Deseret News. But Robinhood has denied the accusation.
Why stock-trading apps are dangerous
Investor Warren Buffett said in early May that stock-trading apps like Robinhood are similar to gambling, giving people a casino-like experience, according to CNBC.
Buffett said the Robinhood app has “become a very significant part of the casino aspect, the casino group of people, that has joined into the stock market in the last year or year and a half.”
But Buffett said apps like Robinhood aren’t bad. It’s just not the only way to make money.
- “There’s nothing illegal about it, there’s nothing immoral but I don’t think you’d build a society around people doing it,” said Buffett.
- “The degree to which a very rich society can reward people who now know how to take advantage essentially of the gambling instincts of not only the American public but the worldwide public, it’s not the most admirable part of the accomplishment,” said Buffett.
