As we see Bitcoin peaking to nearly 50 thousand dollars and giant empires such as Tesla’s CEO investing 1.5 billion dollars, there are no doubts of the rise in CryptoCurrencies. Although many such as Tesla’s multibillionaire CEO have sworn to Crypto, others, including Kevin O’Leary and Warren Buffett, do not see eye to eye. For example, Kevin O’Leary has stated it to be the equivalent of a “nothing burger” because of how incapable the currency is amongst tuitions.
Furthermore, while this currency may seem controversial amongst investors, there is no controversy when it comes to how exponential the growth has been throughout the years. For example, while Amazon’s stock price has gone up around 50% since last February, Etheruem has risen over 500 percent.
In the past months, however, one currency called Dogecoin has taken over numerous headlines. With the growth of nearly 1500% in the past few quarters, many investors are wondering if Dogecoin is a worthy investment. To be straightforward, the answer would be no.
Originally, Dogecoin was created as a complete joke by Jackson Palmer and Bill Marcus. Due to meme culture and the banning of Bitcoin in China, Dogecoin saw a 300% spike in the first two weeks. In fact, during the year 2014, Dogecoin surpassed all CryptoCurrencies. However, the currency was unstable and dynamic. And to this fact, both founders have confessed to not owning a single Dogecoin.
Nevertheless, the recent tweets and media attention from big names such as Elon Musk have recently increased the valuation of the currency.
Although traders may take advantage of this opportunity, the reality of these spikes is simply due to influencers and virality. According to thestreet.com, Bill Marcus recently commented, “The idea of Dogecoin being worth 8 cents is the same as GameStop being worth $325.”
Today, Dogecoin is at a market cap of 7.5 billion dollars, a volume of 5.2 billion dollars, and a circulating supply of 128.8 billion dollars. Unlike Bitcoin, which has a maximum of around 21 million coins, Dogecoin is similar to the U.S. currency and adds an annual 5 billion coins (around a 4% inflation rate).
Palmer has recently been quoted saying, “With no immediate plans for development, it looks like the coin will slowly become stagnant in the future; The circulating supply of Dogecoin is astronomical, which will deter the price of the cryptocurrency from rising any further.”
In conclusion, while a vast majority of investors would rather gamble in Las Vegas slot machines, Dogecoin was simply created by two guys having fun. Moreover, the foundation has raised over 50k for Kenya’s water crisis, 25k to get Jamacia’s bobsled team to the Olympics, and more. While many may trade to get a quick buck out of the short squeezes, others enjoy the ideology of the founders having fun.