The Dogecoin crypto or digital currency is based on the meme “Doge.” It grew its reputation in late 2013. The currency meme parodies a Shiba Inu dog alongside silly multi-colored phrases.
Dogecoin began as a witless joke, but now, the token’s worth rose to billions. Even Tesla’s multi-billionaire CEO, Elon Musk, defined dogecoin as his favorite digital currency. Indeed, the vaulted cost of $1 for a doge is looking more and more attainable
Dogecoin is skyrocketing beyond belief, kicking new record-breaking highs in the stock market. The meme cryptocurrency that no one expected to take seriously has reached 70¢ before dropping ground.
On the 5th of May 2021, many investors crashed the cryptocurrency’s server and immensely increased Dogecoin by 19%, reaching 14,000% years to date. An investment worth $1000 in Dogecoin on the first half of 2021 probably presently worth $135,000. And an investment with the same worth made in 2019 would now be worth $364,000. An insane hike!
Now here are the things you need to know about dogecoin.
Why is Dogecoin going up?
Dogecoin is the latest in a long line of ‘joke’ currencies. But what makes it different is that it is actually gaining traction. Let’s find out why is Dogecoin going up.
Trading on Robinhood, 2018 – 0.002¢
When Robinhood advertised the cryptocurrency platform, Dogecoin added on the lists that investors could buy and sell. This gave dogecoin significant exposure and enticed people to buy, just like any other investor who hates the hassle of exchange would do. This boosted Dogecoin’s popularity.
Tiktok, 2020 – 0.0043¢
During the pandemic, a Tiktok gained attention by a hurdle called The Dogecoin Challenge. The video stated an argument that dogecoin practically has no worth. The video creator estimated that if all 800 million active users of Tiktok would basically invest $25 each, they would drive dogecoin a $10,000+ profit.
Two days later, the actual price of dogecoin actually increased by 43% in just two days. Guess we can say bad publicity is still publicity.
Reddit, January 2021 – 0.001¢
Just like how Reddit’s focus on games made its prices soar, it turned its attention to dogecoin, causing a big stir in the industry. Reddit frenzies pushed dogecoin into the top 10 cryptocurrencies, increasing its worth to 600%.
Elon Musk, December 2020 – 0.003¢, February 2021 – 0.075¢
With just one word, Elon Musk changed the game to dogecoin’s play advantage in 2020. Musk tweeted his support for dogecoin by tweeting, “One word: Doge,” and one tweet from the wealthiest man in the world is enough to surge doge’s worth by 25%.
In February 2021, Musk exhibited his interest in dogecoin again by calling it “The people’s crypto.” And with Elon Musk being good at what he does, dogecoin immediately goes up by 30%.
Doge Day, April 2021 – 0.36¢
Along with Elon Musk is the billionaire Mark Cuban who showed support to the meme coin. Cuban posted on his Twitter account, “If I had to choose between buying a lottery ticket and #dogecoin…I would buy dogecoin…” Surely, betting on an increasing company would be more satisfying than using up your money in a lottery. Why let the opportunity go to waste?
Along with these billionaires are numerous companies who started to voice their support to dogecoin by accepting it as a payment, insanely increasing its value.
Dogecoin’s Perfect Storm, May 2021 – 0.60¢
We could consider it a perfect storm as various catalysts and factors are happening at the same rhythm and tempo.
Gemini, digital currency market and custodian, allowed Dogecoin to be bought and sold in their market. eToro also approved Dogecoin trading in their platform, which gave passage to the meme-based digital currency in the identical way Robinhood has.
The Dallas Mavericks also granted dogecoin cryptocurrency payment for tickets and merchandise.
Dogecoin Now
The value of dogecoin plays around $0.60-$0.70, and the actual question now is, will it actually hit a dollar?
The American billionaire entrepreneur, Mark Cuban, holds that doge will only work if it gains utility. And the only way for Dogecoin to continually increase its worth is through investors’ buy-ins and people’s utilization.
In reality, $10000 dogecoin is under circulation every minute being the inflationary money. Hence, there should be a minimum of $700,000 buy-ins and holds every day to keep up the price in place. If the everyday buy-in and holds would be consistent to the following days and months, then a freaky $1 dogecoin is not entirely unachievable.
Doge Bubble Solicitude
Though dogecoin is skyrocketing, there is still a possibility of a bubble in the crypto market. Some investors view bitcoin look as bitcoin as a risky bubble.
An analyst in the United Kingdom, David Kimberley, stated that the rise of dogecoin is a classic epitome of a fool theory. Countless people are buying doge not because of its value but because of the trend. Some only want to increase the worth so they can sell it off and make an instant buck.
Suppose every people do this without the masses fully supporting and utilizing dogecoins. In that case, the bubble will eventually burst, and investors will be gone shortchanged if they don’t get out in time.
These cases mostly happen in cryptocurrency markets where a specific group holds giant digital coins in circulation. It only means that it only takes one person to bring the whole market to the tank. And the subsequent events are almost impossible to guess.
Many crypto beginners have no understanding of the difference betwixt the respective increase in the cost of dogecoin and bitcoin. While bitcoin crypto has commercial incentives built for miners to continuously generate new bitcoin, dogecoin, on the other hand, has no sustainable infrastructure. The fire about dogecoins is only fueled by the excitement on Reddit and Twitter threads.
Key Takeaways
You might be hyped by the news of the value surge of dogecoin but be cautious. Before you purchase dogecoin with the hopes of profiting on the gains, remind yourself that fame and reliability don’t always go hand in hand. And there will invariably be a potential bubble in doge cryptocurrency.
Investing grants two directions to people. One way is to good fortune, and the other is towards prudent poverty. If you plan to buy an extremely volatile token like dogecoin, keep in mind not to invest money you’re not ready to lose entirely.
