Dogecoin is a joke — or at least it started out as one. Two software engineers — IBM’s Billy Markus and Adobe’s Jackson Palmer — created Dogecoin in 2013 to lampoon all the altcoin wannabes that popped up after Bitcoin rose to blockchain fame. As a logo, they chose a Shiba Inu from a meme called Doge, which went viral that same year.
While we can’t predict dogecoin’s price with utmost certainty, it is prudent the most likely direction. Apparently, the coin started a joke, or rather a crypto meme. But its growth has not been any joke. Currently, it ranks 10th globally. The rise from $0.000232 in 2013 to the current price of 0.05 represents a 21000% rise.
Recent endorsement from high-profile individuals (like Elonmusk) has swayed the “joke” cryptocurrency. Elon Musk’s series of tweets is one of the highest drivers of the dogecoin price increase. Gene Simmons also recently revealed that he owns DOGE while snoop posted an altered album, Snoop Doge. If the celebrities continue this infatuation of dogecoin, then its price will continue to increase.
Like Bitcoin and all cryptocurrency, Dogecoin is:
Decentralized — it’s not issued or backed by a government or bank
“Mined” independently and recorded on a blockchain
Anonymous — privacy is part of the reason crypto is so popular
Unlike Bitcoin and other “deflationary” cryptocurrencies that exist in limited quantities, there is no cap on “inflationary” Dogecoin.
It started as tech-geek satire, but Palmer and Markus were skilled, experienced and imaginative professionals. Their blockchain, proof-of-work process and minting procedures were stable, efficient and secure. Crypto wonks recognized its potential and the fake currency began amassing a very real following.
It already had achieved cult status by the time Tesla CEO Elon Musk started tweeting about Dogecoin in 2021. The props from Musk made Dogecoin a household name and sent its value soaring. It’s now one of the most-used altcoins, particularly for tipping on social media.
How Much Is Dogecoin Worth?
Investors who are put off by the $59,000 asking price of a single Bitcoin will be happy to know that comparatively, Dogecoin trades at a bargain. As of March 19, Dogecoin was trading at $0.0585 per coin. A single Bitcoin would have bought you almost exactly 1 million Dogecoins. But on April 14, the price was up to $0.13, according to CoinDesk — a huge increase for people who had already bought in.
Is Dogecoin a Good Investment?
If you’re reading a basic primer like this, you’re probably better off sticking with your ETF until you learn the ropes. Investing in crypto is not like buying shares of Walmart or UPS. First, it’s incredibly volatile. Wild price swings that would make the common investor queasy are par for the course.
The way that cryptocurrency is generated, distributed, validated and accounted for is completely foreign even to most tech-savvy investors. It’s not backed by any bank, government or corporation, and despite the fact that it feels like everyone’s talking about it, crypto is still a highly experimental niche concept that the vast majority of people know almost nothing about and are nowhere near adopting.
Dogecoin is almost certainly not a good investment in any traditional sense of good investing, but that might just be the reason to buy.
Dogecoin was created by software engineer Billy Markus in only 3 hours. After copying and pasting Bitcoin‘s core code, Markus spent “the bulk of that time making alterations to the client to make the text Comic Sans”.
Markus will be the first to admit that Dogecoin was created as a joke. He even sold his entire position in 2015 just to buy a used Honda Civic. As of April 14, Dogecoin has surpassed a $17 billion market cap. That’s a lot of Civics.
Is it too late to board the Dogecoin rocketship, or will Elon have a few extra Falcon 9s to spare for the journey?
While I am by no means an expert on fundamental analysis, anyone who’s ever copy-pasted anything online can tell you that this task is likely not worth $17 billion.
Just like Bitcoin and the US dollar, the price of Dogecoin is only worth what someone else is willing to pay for it. And for some reason, people are willing to pay a lot for the Shiba Inu, meme coin.
To find out why we turn to Richard Dawkins 1976 book, The Selfish Gene, where the word “meme” was coined. “The new soup is the soup of human culture. We need a name for the new replicator, a noun which conveys the idea of a unit of cultural transmission, or a unit of imitation.”
Dogecoin’s price is not based on its underlying technology, it’s based on its cultural value.
In the Robinhood-GME-Twitter-pandemic era we find ourselves in today, Dogecoin has somehow managed to unite people all over the world in common pursuits of money, laughter and connectedness.
For the now-not-so-low price of $0.13, you can purchase your very own Dogecoin, and be a part of a global movement.
Dogecoin to the Moon?
Dogecoin has pumped 2000% 3 separate times since 2017. It’s kind of its thing.
The billion dollar question left to be answered: where does it stop? Frankly, nobody really knows. During the 2017 bull run, you would have been sent to the psychiatrist for suggesting $1 dogecoin, but today it’s all twitter can talk about.
Let’s put things in perspective for a moment. $1 Dogecoin would yield a market cap eclipsing that of Charles Shwab, Blackrock, American Express, IBM and Goldman Sachs. This seems unlikely, but it’s already ahead of E-trade, Hasbro and Levi Strauss – so who really knows anything anymore.
Should You Invest in Dogecoin?
So far in 2021, an army of social media-fueled Robinhood investors took down Melvin Capital during the GameStop short squeeze, and decentralized cryptocurrencies have caused panic within central banks across the world. It appears that power is leaking from the top, draining down the ladder through fiber optic cables and WiFi routers.
If you’re a zoomer or a millennial with a Robinhood account, odds are you already own a chunk of DOGE larger than any financial advisor on the face of the earth would recommend, and you’ve also probably already made a higher yield on it than those advisors will make in the next decade on their stock portfolios. Give yourself a pat on the back, you’ve earned it.
An investment in Dogecoin is not about making money (although it may happen accidentally) it’s about being a part of something bigger.
The retail investor is no longer an individual. They’re a team, and Doge is their mascot – at $0.01 or $1
The Future of Dogecoin
A $17 billion dollar meme tends to shake traditional investors to their core. It even scares many away from cryptocurrency altogether. While many see this as a market top indicator, it looks to me like a bull flag.
In 2017, the biggest concern facing Bitcoin was it’s viability for everyday use. No stores accepted it as payment (except a few really, really smart ones) and the average person still thought Bitcoin was magic internet money.
Now the narrative has changed, and Dogecoin has had a significant impact in cryptocurrency adoption as a whole. Gone are the days of boring CDs and treasury bonds from grandma. The new generation speaks in memes on their iPads from the age of 3, and their finances ought to reflect that.
Dogecoin introduced the millionaires and billionaires of the future to a technology they didn’t know (and may still not realize) they wanted, blockchain.
If the growth of blockchain and Bitcoin truly follow Metcalfe’s law (as they appear to do so far), then widespread adoption through any channel is not only a good thing, but ideal. Dogecoin is unlikely to stand the test of time, but it almost doesn’t matter.
Will Dogecoin reach $1 in 2021? Check this Analysis
The bullish movement of the dogecoin will continue through April.
ACCORDING TO TRADINGBEASTS’ DOGECOIN PREDICTIONS, AT THE BEGINNING OF APRIL, DOGECOIN IS LIKELY TO REACH $0.0595023. THE MINIMUM PRICE WILL BE AROUND $0.0509205, WHILE THE MAXIMUM IS EXPECTED TO GRAVITATE TOWARDS 0.0748831. AT THE END OF THE MONTH, THE PRICE IS EXPECTED TO REACH $0.0599065.
After Dogecoin breaks its resistance at 0.05 it has continued to rally up now over 0.3, so there’s a high tendency that Dogecoin will rally up until it touches $1, but not financial advice. But analyzing the face of whether or not Dogecoin will reach $1 in 2021 gives us a score of 99/100%.
The Dogecoin price movement on charts is a mixture of bullish candles and a ranging market. Around mid-February, the dogecoin chart formed a descending triangle followed by a stable trend. If the price breaks the resistance, we could see price movement upwards. A break to the downside could slump to a $0.045 zone. This zone has support from a previous price gap.