A doge’s breakfast?
The popular crypto asset dogecoin, designed as a joke in 2013, has been refueled for the past week after hitting a record value Monday, leaving few investors laughing.
Dogecoin was trading at 0.06784 cents at last check, down more than 20% from its Feb. 7 record of 0.087159, according to CoinDesk data. That drop meets the widely used criteria among Wall Street chart watchers and tech analysts for a bear market.
Read: Dogecoin? Many “retail gamblers are going to lose money,” says crypto expert
It is not clear where the crypto is heading from here, it is still up about 50% in the last seven-day period and is enjoying a dazzling gain of 1,350% since the start of 2021, with a market value of $ 8.7 billion. , from Friday afternoon. That ranks dogecoin just outside the top 10 cryptos, with bitcoin BTCUSD,
atop the leaderboard with a market value of over $ 880 billion.
‘People are moving en masse from markets and playing even more crazy with each other without understanding the consequences or their own psychological limitations.’
Doge’s rally started on the basis of a series of bullish, if at times cryptic tweets Tesla Inc. TSLA,
General Manager Elon Musk.
A number of celebrities, including Calvin Broadus, aka Snoop Dogg, and Gene Simmons of the rock band Kiss who joined Musk – as well as billionaire investor Mark Cuban – have tweeted about investing in dogecoin.
On Reddit’s popular SatoshiStreetBets chat forum, some expressed the hope of pushing the value of the dogecoins to $ 1.
However, crypto experts have warned that dogecoin, pronounced “dōj-coin” and often associated with a popular shiba inu dog meme, has limited utility compared to other decentralized cryptographic assets, including bitcoin.
Billy Markus, co-founder of Dogecoin, told The Wall Street Journal in early February that he created the asset in 2012 as a “lighthearted cryptocurrency,” then known as Bells, to serve as the fun version of bitcoin.
In an open letter on Reddit this week, Markus also wrote about the cryptocurrency.
“It went very quickly from a stupid joke to something worth the people, and a community developed rapidly, with many shady people and many new people, quickly building services and infrastructure around it,” the co-founder wrote.
Nic Carter, a crypto and blockchain venture capitalist who founded Castle Island Ventures earlier this week, warned on CNBC that average investors could be seriously hurt by making speculative bets on assets with no real purpose. He also thought it odd that Musk would back the virtual trump card.
“It’s somewhat disturbing to see Elon Musk so excited about it,” said Castle Island’s co-founder.
Bullish bitcoin investors claim that price increases in bitcoin, the world’s # 1 cryptocurrency, are supported by the crypto’s limited supply inherent in the code. Only 21 million bitcoins will ever exist, and the so-called mining for bitcoin, or solving complex math problems rewarded by bitcoin, becomes more difficult as time goes by. The last cache of bitcoins will probably not be mined until around 2140.
Dogecoin’s offering, on the other hand, has no built-in limit, with the number of dogecoin that can be mined at any given time ranges from one to hundreds of thousands.
Nonetheless, interest in dogecoins underscores the need for alternative assets in an environment where 0% interest rates prevail as governments around the world seek to mitigate the economic damage from the COVID-19 pandemic.
Charles Hayter, CEO of London-based research site CryptoCompare, told MarketWatch earlier this week that investors should exercise caution with such investments as dogecoin.
“People are moving en masse from markets and making fun of each other even more without understanding the consequences or their own psychological limitations.