Dogecoin has been making headlines in the crypto news as its price soar an all-time high to more than 50 cents per coin, thanks to Elon Musk and Mark Cuban. Before we go more into that, let’s take a trip down memory lane about the history of bitcoin.
What is Dogecoin?
Dogecoin was started as a joke in 2013 amid a boom in early cryptocurrencies. Invented by software engineers Billy Markus and Jackson Palmer, it was based on a popular internet meme that featured a Shiba Inu dog and cartoon-style text over the image.
The sudden popularity
Unlike bitcoin and other cryptocurrencies, Dogecoin was way cheaper in value and price. Then why did Dogecoin’s price suddenly soar? It was all thanks to Elon Musk and Mark Cuban.
According to CNBC, the coin has been boosted in recent weeks by the two billionaires, who have mentioned Dogecoin on Twitter multiple times. Cuban has said the increased interest and use in Dogecoin had made it more than a joke.
“Meme coins like Doge only work if they gain utility and users use them for that utility. As long as you can spend Doge, because we know its annual inflation rate is set at 5b coins, it can gain SOME value as the utility grows. It becomes like any other currency,” Cuban said on Twitter.
“As long as more companies take Doge for products/services, then Doge can be a usable currency because it MAY hold its purchasing value better than a $ in your bank. If interest rates skyrocket or the amount spent falls or stagnates, so will Doge. Yes, a joke is now legit,” he added.
Musk, who was voted Dogecoin CEO in a 2019 Twitter poll, repeatedly spurred the Dogecoin price in recent months. On April 1, Musk said his rocket company SpaceX would put “a literal dogecoin on the literal moon,” playing down suggestions it was an April Fool’s Day joke.
Dogecoin, which has attracted criticism for its lack of development and high token concentration among a small group of accounts, had been down by almost half from its mid-April peak ahead of Musk’s latest dogecoin Twitter post.
The latest price pump for Dogecoin came after Tesla chief executive and self-proclaimed ‘Dogefather’ hyped up his planned SNL debut.
Is it wise to invest in it?
Although this might be a good time to invest in Dogecoin, financial experts have generally advised people looking to invest in cryptocurrencies to allocate just a small amount of their portfolio.
“Never invest in anything you aren’t willing to lose,” Ben Weiss, co-founder and CEO of CoinFlip, said.
According to CNBC, if one likes Dogecoin and thinks that it could be a viable currency in the future, they can invest in it. “If you don’t like it or think it’s a fad, don’t invest in it,” he added.
An article published by TheStreet.com said that choosing whether or not to invest in Dogecoin is a personal choice and the risks that one is willing to take. It also states that an investment in Dogecoin is based mainly on conjecture, and it will continue to rise from social trends. It may continue to grow as long as Bitcoin is in a bull market, although it is a risky chance to take.