Even if you don’t follow cryptocurrency news at all, I’m sure you’ve heard the name Dogecoin getting tossed around recently. Scoffed at by Wall Street professionals and damn-near worshipped by crypto-heads, it’s hard to tell what the deal with Dogecoin really is.
Dogecoin was the fourth-largest cryptocurrency (as I’m writing this article), with a market cap that’s pretty unbelievable for something that was started as a complete joke. But, believers in the crypto maintain that this cute little coin isn’t going anywhere. And with price pushes in the first weeks of May that brought the price of Dogecoin up to 72 cents, it looks more and more likely that Dogecoin could actually surpass that $1 hurdle.
So, if you’re in the dark about why Dogecoin is such a big deal these days or you want to know whether or not it’s really going to go over a dollar, keep on reading. This is the truth about the $1 Dogecoin craziness.
Dogecoin Explosion – Shoulda, Coulda, Woulda
First things first, before we get into the future of Dogecoin and if it’s really going to surpass that $1-mark, let’s look at the ridiculous year that this crypto has had with some 20/20 hindsight, baby! If I had a crystal ball at the beginning of last year, I probably would’ve thrown every cent that I had into Dogecoin.
If you had invested in Dogecoin about a year ago and sold it when it was at its height on May 8th at 72 cents, you would be looking at a price increase of 29,000%. Yes, you heard me right. 29,000%! That is absolutely insane. By comparison, Bitcoin was up a little less than 600% over the same time period and Ethereum was up about 1,700%.
So, if you were thinking about throwing some money in Dogecoin a year ago and decided not to do it, I am deeply, deeply sorry. How much would you have had to put into Dogecoin to be a millionaire right now? Oh, only about $3,500. Talk about a missed opportunity.
And don’t be fooled by that cute little dog face on the logo, Dogecoin is now a serious market force. Don’t believe me? Well, would you believe me if I told you that Dogecoin’s market cap surpassed that of Twitter, FedEx, Nintendo, and Ford? Would you believe me if I told you that it was higher than the market cap of Hilton and Southwest Airlines combined? Well, it’s all true, and its market cap sits at around $79 billion as I’m writing this article. So, for anyone who thought the Doge was just a stupid joke, it’s time to start looking at the numbers.
So, what happened here? Well, for one, Robinhood started letting people trade cryptos, including Dogecoin, back in 2018, which made it way easier for people to buy Dogecoin quickly and easily. Then, of course, we have TikTok to thank with that “Dogecoin Challenge” that urged people to invest $25 in Dogecoin with the promise of a $10,000 return. The Dogecoin Challenge caused the price to rise about 43% in less than two days, which is just crazy.
Possibly even crazier, though, is when Elon Musk tweeted out, “Just one word: Doge,” causing the price of the crypto to rise about 30% in less than 24 hours! Soon enough, the Reddit community started getting behind Dogecoin, Elon Musk tweeted some more, and they had some thing called “Doge Day” where supporters unsuccessfully tried to push the price of Doge over $1.
And now, here we are, with the price of Dogecoin at the unthinkable level it’s at. And these days, it seems like you can’t go 5 minutes without hearing about it, like celebrity chef Guy Fieri putting out this Tweet with a picture of him riding in a convertible with Dogecoin’s signature Shiba Inu.
And how about the fact that the Oakland Athletics of the MLB just started accepting Dogecoin for stadium tickets, as did the Dallas Mavericks of the NBA under the leadership of Mark Cuban? Wild!
So, this meme-based cryptocurrency that was started entirely as a joke and was never meant to be taken seriously as a legitimate currency is now gaining serious legitimacy. And it now has a higher market cap than some of the most notable Fortune 500 companies.
Seems like a pretty good investment, right? Well, I wouldn’t be so sure. Let’s take a look at whether or not Dogecoin is actually going to climb up over $1, or maybe even higher, and whether it’s a good idea to invest in it or not.
Should You Invest in Dogecoin? – Is It Legit?
So, we already established that had you invested in Dogecoin a year ago, you’d be absolutely filthy rich right now. And I know it’s hard not to want to get in on this Dogecoin craze, especially when you’ve seen the kinds of gains that people have made off it. But, before you go pouring your life savings into Doge, there are some things you should know.
First of all, 10,000 Dogecoins are programmed to be issued every minute until the sun goes cold. Yes, forever. And if you know anything about how currency works, there should be a massive warning siren going off in your head right now. Why doesn’t the U.S. Mint just issue millions of dollars every year? Because each dollar would immediately lose value and soon become worthless.
The fact that there’s a set amount of dollar bills out there is what allows the dollar bill to hold its value. The same thing goes with Bitcoin. There are set to be 21 million total Bitcoin out there in cyberspace, and while some have yet to be mined, we still know that there’s a set amount, a defined amount that we can use to calculate each one’s value.
With new Dogecoins being issued every minute with no end, it’s pretty much impossible to assign a value to this currency, and there’s no basis for determining the value of the Dogecoin network as a whole. In that way, Dogecoin is an extremely risky investment because, if it should go out of fashion, its value could drop back down to zero immediately.
Why would the programmers make it so 10,000 new coins come out every minute? Well, in case you forgot, it was meant to be a joke, people! Even Billy Markus, the software engineer who created Dogecoin, has said that he’s absolutely baffled by its astronomical rise in value.
So, let’s sift through all the hype and tell the truth about Dogecoin and what its real prospects for the future are.
The Truth About Dogecoin – Shooting Straight
So, the truth of the matter is that since the supply of Dogecoin is essentially unlimited, being that 10,000 more will be created every minute into eternity, there’s absolutely no way that it could ever hold its value in the long term. The only way that could happen is if the hype we have right now remained just as strong until the end of eternity. And, as we all know, that’s not how hype works.
At some point, you can expect the value of Dogecoin to go back to essentially nothing. However, I’m not saying that you definitely should not invest in Dogecoin in the short term. There’s a very real possibility that the people rallying behind Dogecoin could push its value up above $1, and if you get in and out at the right time, you could make some serious cash. Whether you try your hand at that or not is completely up to you.
Just don’t expect to live in a future where you’re buying your groceries with Dogecoin. That’s never going to happen.