Via ZEXPR, Dogecoin is a cryptocurrency developed as a parody of Bitcoin (CCC: BTC-USD). The joke is over – according to The Verge, “Dogecoin has fled the lawn, and is going to the moon.”
Even the Tesla founder, Elon Musk, raved about Dogecoin. Because of him, the price went up. The Tesla founder likes to the ups and downs of the crypto world. With his predicament that Dogecoin will only increase, more investors are paying heed to this cryptocurrency.
Here are some Dogecoin facts to look over:
- Last year in 2020, Dogecoin was priced at 57 cents per coin.
- It closed at 26.44 cents yesterday
- Analysts are looking at an increase of more than 46 times in less than four months.
- Furthermore, if you look closer than you’ll observe that Dogecoin increased by 326 percent just last month.
- It went to 6.2 cents a coin at the end of March 2021.
According to Investment Center broker David Bloom, Dogecoin currently has a market capitalization of $34.8 billion.
For the ones who made fun of Dogecoin – this cryptocurrency’s market capitalization is now standing tall at 50 Billion Dollars. If we compare it Marriot International Inc. and Ford Motor Co., +0.85% and +1.87%, respectively, we clearly see a stark difference here. It has become the latest phase of something that no one paid any heed to, but now it breaks all its previous record. The interest of every other fast-paced investor has now peaked with Dogecoin’s latest rise. They have used no-fee trading sites and a flood of government stimulus funds to change markets over the past year.
This time, Dogecoin’s investors have gone a lot farther, converting a parody into a tangible commodity, resulting in unbelievable profits for those traders who got in early. The new stage of the hysteria focuses on Tuesday, dubbed “Doge Day.” In online forums, it is referred to as a haphazard attempt to drive the crypto currency’s price to $1 from a 5 p.m. Closed at nearly 39 cents in Eastern time.
- There are just 128 billion Dogecoins in circulation,
- This year’s inflation rate is 3.9 percent.
- There will be 133 billion Dogecoins next year, though the pace will drop slightly.
- The average then drops to 3.759 percent. And so on,
- Until the tenth year, the growth will be 50 billion dollars a year.
- The inflation rate is just 2.89 percent (i.e., 5 billion divided by 173 billion).
Consumers benefit from this in several ways. For one thing, they can anticipate a rise in production. The supply-demand balance will help the market set the right price depending on how intense the demand for Dogecoins will be in any given year.
All other factors being equal would begin to grow slowly over time. As a result, the price would be affected by the marginally inflationary supply structure.
For now, it seems like Investors can predict Dogecoin’s rise and fall in the market, making it more predictable. The stability in the coin’s rise shows strength, and now it can even be considered a payment method. Like Bitcoin, many would consider using Dogecoin to buy and sell goods and services.
As a result, Dogecoin could have significant potential appeal as a currency, even though the blockchain isn’t really original.
The Next Big Thing
Dogecoin is a cryptocurrency, or digital currency, that works similarly to bitcoin. It enables peer-to-peer transactions on a decentralized network. A significant distinction is that bitcoin is the first blockchain proof-of-concept. Now Bitcoin is a game-changer. According to some, Bitcoin is a game-changing invention that can transform the way money works in the twenty-first century.
What Do You Do For Dogecoin?
Dogecoin began as a joke between two programmers, Billy Markus and Jackson Palmer. According to Wikipedia, they decided to build a fee-free payment scheme. They used the Shiba Inu dog’s mask from the “Doge” meme as their logo.
So it’s no longer a joke. Let the consumer, though, beware. The Wall Street Journal reports that one person owns a significant portion of Dogecoin, as I previously said. According to the paper, the person controls 28% of the total supply. If they plan to sell, keep an eye on the area below.
The most important thing to note about Dogecoin is to not go all-in. If you plan to purchase this cryptocurrency and believe it will continue to rise, diversify your holdings. It can be taken down in the same amount of time.
As a result, make sure to invest in various other cryptocurrencies and/or securities to better diversify your overall portfolio. If certain stocks or cryptos do poorly than others during a decline, this will help spread the pain.
The bottom line is that if you buy Dogecoin because it is rising, you should expect it to decline as well. It’s no longer a joke.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.