This Crypto is up 200% this year and the social media is having a field day.
I have written many times about the pros & cons of owning cryptocurrencies and expressed my preference to trade the volatility they create but the rise in this new class of asset backed by growing support by some institutional investors as well as celebrities is something that we must all keenly observe and potentially act upon.
So what's the latest craze? Dogecoin.
To be honest I have heard about it but never really looked at it's merits until this month.
This crypto was designed to serve no real purpose. Dogecoin holders can’t buy much with it and can’t easily convert it to cash. For most of its life, the virtual currency has traded for no reason other than to generate online laughs.
Dogecoin is named after an internet meme that surfaced nearly a decade ago. The meme was designed around an image of a Shiba Inu dog with bad spelling habits (thus doge instead of dog). Users Photoshopped the dog’s furry face onto everything from astronauts to Twinkies.
Confused? I am.
In 2013, a software developer Billy Markus was watching bitcoin gain in popularity and decided to make his own light-hearted cryptocurrency.
The coin had a brief moment of fame when it started. In 2014, its online supporters helped fund the Jamaican bobsled team’s journey to the Winter Olympics in Sochi, Russia, and sent a dogecoin Nascar racer to the Talladega Superspeedway in Alabama. Like most memes, it faded from relevance.
Then Elon Musk started tweeting, as he has about Bitcoin. Dogecoin then surged as a topic on WallStreetBets, the Reddit forum, the one that skyrocketed GameStop out of nowhere.
Subsequently Billy Markus (co-creator of the coin) told the The Wall Street Journal that dogecoin’s rally to records “doesn’t make sense,” and equated it to the recent fervour on social-media platforms.
But, in recent days Snoop Dogg, Gene Simmons of the rock band Kiss joined Elon Musk and billionaire investor Mark Cuban began tweeting about the dogecoin (presumably for a laugh) but the neo-traders jumped on board.
So, is dogecoin worth buying you may be asking? If Bitcoin is heading towards 50k and maybe too late to jump on it, is this crypto coin worth a punt?
As always there are mixed and varied views about the inherent long-term worth of these currencies and warnings of impending doom, but as these assets are more and more influenced by social media and the new breed of trader backed by celebrities, who can say for sure?
Bullish bitcoin investors make the case that price gains in bitcoin, the world’s No. 1 cryptocurrency, are supported by the limited supply of the crypto that is inherent in its code. Only 21 million bitcoins will ever exist, and so-called mining for bitcoin, or solving complex computational problems that are rewarded by bitcoin, become harder as time goes on. The final cache of bitcoins likely are not going to be mined until around 2140.
The supply of dogecoin, on the other hand, has no built-in limit, with the number of dogecoin that can be mined at any given time varying from one to hundreds of thousands.
Nonetheless, interest in dogecoins underscores the appetite for alternative assets in an environment where 0% interest rates are prevalent as governments around the world attempt to mitigate the economic harm from the COVID-19 pandemic.
Mark Cuban (not really a crypto enthusiast) the American billionaire entrepreneur and television personality, put it in a nutshell, regarding dogecoin.
“You can buy $1 worth or $10 worth and have fun watching it all day every day,” Cuban said.
A single dogecoin was valued at 8.1 cents, up around 30% yesterday; back in late January it was changing hands at less than a penny, costing 0.007 cent.
#insiderkk, no opinion but if you want to take a look, we have partnered with Coinmama to offer you the opportunity to buy.