What is Dogecoin?
Dogecoin is a cryptocurrency that was launched in 2013 by engineers Jackson Palmer and Billy
Markus. It was created as a joke making fun of the wild speculation in the crypto space at the
time. It features the face of the Shiba Inu dog from the “Doge “ meme as its logo. The coin was
not intended to be a severe investment asset; hence Billy and Palmer ceased being directly
involved in the Dogecoin project. Recently this meme coin has made headlines due to its ties
with the CEO of Tesla and among the wealthiest people, Elon Musk and other Tick tock icons.
These headlines have made the coin surge in price, reaching its all-time highs of 72 cents. Musk
was the catalyst that made dogecoin spike that much within days. Elon Musk mentioned the coin
on Twitter, adding another chapter to the volatile history that started as a joke. As of May 2021,
the dogecoin market cap has risen to 39.3 billion dollars.
Dogecoin shows bearish movements after Elon musk calls it a ‘hustle’ on the ‘SNL’ show.
Few weeks after Dogecoin hit its all-time high, the market seems to behave a downtrend,
especially after Elon musk called it a hustle during the “Saturday night live” comedy sketch TV
show. The cryptocurrency quoted a low of 41 cents on crypto exchange Binance from 65 cents
before the show. This follows after musk called the meme coin a hustle and was also unable to
show people the real-world value of Doge. This massive hype on a coin with no real-world use
case has brought fears within the crypto industry, especially as Charles Hokinson from Cardano.
Bitcoin and Dogecoin have roller-coaster week after Musk tweets
On Wednesday, May 12th, Tesla CEO Elon Musk slapped the coin he had been pushing on for
weeks after he tweeted that his company will no longer accept bitcoin as a form of payment for
its electric vehicles. After this news, the whole crypto market went down, including Dogecoin.
he also mentioned that Bitcoin and all other coins, depending on proof of work, are not
environmentally friendly. The world should commence looking for a better way like the proof of
stake algorithms. Dogecoin, Bitcoin, and other significant currencies like litecoin use the proof
of work algorithms facing critics, especially from the Elite community.
Since the start of the year, Dogecoin has shown exponential growth. As of January 2021, a single
coin was worth $0.0054, reaching a high of over 60 cents as of May 2021. Many dogecoin
holders have earned large sums of money enough to change their lives and those of their
families. It’s for this reason that we see many new entrants in the crypto space. Holders
have Dogecoin growth expectations that have led many people to invest in the meme coin.
Social media icons purely drive the volatility and fame of the currency through powerful
platforms like Twitter and Tick tock.
Dogecoin value in June 2021
2021 has been an excellent year for cryptocurrencies and especially Dogecoin. While the rest of
the economy dipped due to the pandemic, most cryptocurrency prices have been increasing while
others have maintained their fees within the range. Like every other cryptocurrency, Dogecoin
has been subject to volatility. It’s not primarily possible to state dogecoin price prediction as it
mainly depends on the hype and number of people using it. If high-profile individuals like Elon
Musk and Tick Tock influencers continue to endorse Dogecoin, we will see a significant price
increase. Dogecoin value in June 2021 may remain stagnant or decline to about 30 cents. The
price may later go up in the coming months.
The dogecoin fears
The whole crypto market is at its all-time highs, and there is only one way to go when such
assets are on their highs, to go down. For the early investors of Doge, it’s time to pick up your
profits, but for new investors, it’s time to hold firm. Many people make money in the industry as
much as they may lose their hard-earned cash. Due to the massive hype, many people will buy
Doge at these overinflated values, making many people lose money in the short term but may get
returns in a long time. For faster investors or the get rich quick people, be warned. For any
crypto believer who sees crypto as the future, these prices are still low entry points.
Estimated value in 2022
Dogecoin was created as a satirical alternative to bitcoin. With its recent market performance, it’s
impossible to ignore it. It’s among the top 10 largest cryptocurrencies placing it ahead of XRP,
Cardano, and Litecoin. since the beginning of the year, the coin has been experiencing massive
gains amid Elon musk dogecoin tweets. To get the correct price prediction of Doge, you will
first need to understand the factors that drive the prices of a cryptocurrency.
So far, Dogecoin has shown good progress, but the question remains, how far can it go?
Financial experts and analysts suggest that the price of Doge will grow dramatically in the future.
Wallet investor predicts the worth of Doge to be over $1.09; Trading beasts predicts it to be
$2.12, while Coinpedia indicates Doge to move drastically to a whopping $20.For long-term
investors, Dogecoin has clear signs of giving some good profits.
Factors affecting the price of Doge
Social media coverage
Only a few cryptos are immune to the power of social media mentions—even big names like
bitcoin show bullish movements due to online interest. Dogecoin had spiked when Elon musk
tweeted Dogecoin, which shows how social media can play big on coin prices.
Any hacking attempts have a negative impact on the asset price. This is due to the loss of
confidence in the technology by the various investors. If the technology is resistant to attacks,
then many people will invest in it.
Futures and options trading
The trading volume has climbed during the pandemic as a growing pool of investors has access
to crypto markets through increased platforms. The rising use of cryptocurrency derivatives is
significant because investors can use such calls to place outsize bets with only a tiny amount of
money upfront, effectively taking on leverage, the act of borrowing to amplify returns.
A market capitalization
The dogecoin market cap is another factor driving its prices. Market cap is usually the most
straightforward indicator of the value of a coin in the market. It is calculated by multiplying the
total supply of the coins in supply with the price of each currency.
Adoption by masses
The value of Dogecoin is entirely dependent on the number of users. When the masses adopt a
coin, it can spike up drastically—because of the limited number of cryptocurrencies units
available, the demand increases, increasing its prices. If Doge ever gets accepted as a medium of
exchange in transactions, the demand will rise even further.
The demand for cryptocurrencies is skyrocketing as famous public figures have shown interest in
these assets. This investment guide for cryptocurrencies will help you understand the factors
that are critical before investing in crypto.
It is advisable to check the nature of the coin and the kind of team backing it. Some crypto has
no known team supporting it hence marketers for the cash. It’s very wise of you to invest in coins
that have been there for around one to two years.
Understand the value proposition
Understanding the project’s value proposition is very important before investing in any coin.
Always figure out the gap the project is filling and if the gap is worth a try.
Go for the long term
Long-term holders are the ones who reap the benefits of this volatile crypto market. Most short-
term investors have lost a lot of money due to a lack of patience. During the 2017 bull run,
bitcoin investors saw their investments go down over 75%. However, the people who held strong
have gained 300% plus on their investments three years later.
Dogecoin growth expectations
After going through all the above, we can now wrap up by stating what is expected of Dogecoin
worth in 5 years. The price of Dogecoin will only have a drastic rise if an additional utility is
added to it. As per the time of writing, the price is purely dependent on speculation. Flare
networks are planning on bringing intelligent contracts to Doge, which will be an excellent
reason for its growth. Flare networks tweeted that Dogecoin can be used in smart contracts on
flare networks together with #XRP, #XLM, and #LTC. If this happens, that’s where Doge
becomes more and more powerful.
Doge and all other cryptocurrencies are highly volatile, with very wild fluctuations all around.
But as more and more people and large companies continue to invest and show interest in
Blockchain-related technologies. Cryptocurrencies are one term that is here to stay. And as
always, invest in what you can afford to lose.
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