The GameStop and AMC fiasco serves as a cautionary tale that it pays to get in on the ground floor of hot internet ventures as soon as they are made accessible. There are still a few “diamond-handed” warriors who are hanging on, hoping to stick it to the man by maintaining their stock in the market, even though it seems that the savvy ones have cashed in their stockpiles of the aforesaid commodities and made a killing. However, Dogecoin may pique the interest of those people who are actively involved in investing their hard-earned money but who seem to have missed out on the Reddit stock market boom.
You are, on the other hand, rightfully sceptical of a currency that was established based on a cute dog joke, don’t you? So, is Dogeco merely a gimmick or is it a legitimate investment worth your time and money? Is it possible to get wealthy via the use of Dogecoin? Is it wise to put all of my money into Dogeco right now? Let’s take a look at if Dogeco is a worthwhile investment of your time.
Dogecoin was created in 2013 by two software developers as a form of payment.
Dogeco is a cryptocurrency, and as such, it has the same characteristics as Bitcoin and Ethereum. That is, it is tradable in the same manner that stocks and shares are, and it may be purchased and sold at your convenience, as opposed to stocks and shares. Even though it began as a joke in response to the growth of other cryptocurrencies, the value of bitcoin has skyrocketed exponentially.
A lot of money has been made by those who bought before the frenzy started
Although Dogecoin was meant to be used as a joke currency, many individuals have earned a lot of money from it. If you have the means to invest a little amount of money in it, it may not be such a terrible idea in the long term. Because it’s anyone’s guess whether or not it will blow up again.
Having said that, anybody who invests anything close to £10k in something as high-risk as Dogeco, such as the gentleman in the example above, is… engaging in high-risk behaviour.
The value of Dogecoin has skyrocketed in recent months
Even the most inexperienced investors might get a little excited when they see charts like these, but what does it all mean in real life? In the first place, the surgeon on the far right represents an increase of more than 800 per cent in only 24 hours.
While this demonstrates that the value of this cryptocurrency has surged in recent months, it’s hard to predict whether this is a trend that will continue or whether it will merely result in a transitory spike, as was the case in 2018.
Dogeco has a market capitalization of approximately $2 billion in January of this year. At the end of January 2021, the company’s market capitalization was around $5.5 billion.
Dogecoin is volatile because it is overhyped
There is a lesson to be learned here, regardless of anything else we learn from the stock market vs Wall Street Bets catastrophe.
In the wake of Reddit’s and TikTok’s popularity, Dogecoin’s value has surged. The excitement can only go so far before investors are exposed to potentially catastrophic losses, as we’ve seen with GME and AMC.
It is up to you to examine your risk profile and decide if this is a smart investment for you based on the volatility of stocks, shares, and currencies (the urge to insert that douchey Warren Buffet story was strong, but I will resist).
Is Dogecoin a $100 currency? It might be as little as a dollar. $10? $1,000?
Having risen from around $0.0002 to more than $0.70 in a short of months, many people are asking themselves, “How far can Dogeco go?” after seeing its meteoric rise.
Many individuals who are new to cryptocurrencies and are interested in DOGE and other altcoins seem to be among those who are investing for the first time. Even though Dogecoin’s price dropped by more than 70%, reaching as low as $0.20 before rebounding slightly, the cryptocurrency remains among the top ten most valuable cryptocurrencies by market capitalization.
Will this, however, always be the case? Is it possible for Dogeco to hit $1? What if you had $10, or maybe $100, or even more?
There are a variety of factors working against DOGE’s continued upward movement. Values as low as $1 or even higher than $10 are theoretically attainable. However, considering the way DOGE operates, a price objective of $100 or more is not feasible for the cryptocurrency.
It is hard to forecast the price of DOGE or any other investment in the future; but, we can make a good guess as to whether DOGE will ever hit $100.
Is Dogeco on its way to $1?
The likelihood of Dogecoin hitting $1 is a real possibility. This would represent a decrease of less than 50% from the all-time high of around $0.70 per DOGE.
The answer to the question “can Dogeco reach $100,” or even $1, or any price for that matter, comprises two parts: the market capitalization of DOGE and the mining dynamics of DOGE.
Understanding the magnitude of the DOGE market capitalization in proportion to the amount of fresh supply available provides insight into how high the price of the DOGE mayor cannot rise. When a new block is solved, miners are rewarded with 10,000 DOGE, which is paid out every minute. A total of 5 billion new Doge coins are issued each year as a result of this.