Investors are looking for the potential of 1000% in cryptocurrency investing. If the return is a 20% gain, it sounds lame. The recent price spike of Dogecoin fits the appetite of investors or gamblers. In 1 month, the coin has gained about 800% and roughly 9,000% increase in under four months. Some say there are practical usages for the coin, some say it is the euphoria pushing up the price with no backing of fundamentals.
Dogecoin now has a market cap of roughly $50B, surpassing some other coins such as Cardano(ADA). To get a sense of this, the market cap is now bigger than companies like Walgreens(Ticker: WBA) and Ford(Ticker: F). That is just mind-blowing.
Public figures showing support for Dogecoin
Elon Musk and Mark Cuban have been the front runners in promoting Dogecoin, with the famous slogan ‘to the moon’. Each time after a post on Dogecoin, followers retweet with a frenzy typically showing a Shiba Inu dog riding a spaceship to the moon. Mark Cuban’s basketball team, the Mavericks have decided to accept Dogecoin as payment for Mavs tickets and merchandise.
The meaning behind the tweets
Probably, Elon Musk’s idea is to store Dogecoin on a hard wallet and putting it on a SpaceX rocket ship, and taking it to the moon as a symbolic gesture. The actions taken by Elon were probably to spread awareness for cryptocurrency. Does he imply Dogecoin prices will skyrocket? Maybe not so much.
According to Mark Cuban, dabbling Dogecoin is a way to have fun, learn about crypto, and potentially make money. He also urged people not to take it too seriously and said that he enjoys being part of the coin’s community and tweeting rocket emojis and “doge to the moon.” He also commented he would rather buy Dogecoin than a lottery ticket.
Should you buy Dogecoin
There is no limit on the supply of Dogecoin. New coins are minted every day. To sustain the price, there must be new money going into buying up the coins daily. Since there is no lifetime limit on the number of Dogecoins that can exist, and millions of new Dogecoins are released onto the markets every single day, there is little incentive to hold the cryptocurrency for the long term.
If you buy for the fun and involvement in the crypto community — Yes.
For YOLO purposes and means to strike rich, maybe try not to put too much into it. Probably, any investment in Dogecoin should be an amount you are mentally prepared to lose.
Dogecoin’s co-founder said in an open letter on Reddit, “Pump and dumping, rampant greed, scamming, bad-faith actors, demanding from others, hype without research, taking advantage of others — those are all worthless,”.
There is no doubt there are people that made a fortune, but there is a difference between doing it with money you can afford to lose, and with money, you need to use tomorrow.
