Doge stock burst onto the scene when Elon Musk decided it was the next big thing. Then all of a sudden, it took off and there were rocket ship emoji’s everywhere. People began to see it as a way for them to get out of debt, pay off school bills, and get rich. Then Elon Musk tweeted again and down went Dogecoin stock. Will it go back up? It’s hard to say with meme stonks. Will people lose interest and move on to the next trend? Will the government decide to regulate it? These are all things to consider if you want to invest in Dogecoin.
No one had really heard of Doge stock before Elon Musk got on the bandwagon. And then it was everywhere you looked. Price went from $0.04 to $0.6894. That’s a pretty big increase. And it was everywhere. I mean everywhere. I’d sign into Facebook and see women posting about their husbands buying it.
In fact, I even had a college student ask me if she should put her savings into Dogecoin stock so she could pay off her student loans. It’s that kind of thinking that’s a little scary. I told her that personally, I would not at this time because it was so over extended that I’d be worried I was buying at resistance instead of support.
And if you don’t know what support and resistance is, or how to find it, you shouldn’t be investing in it. After we had that talk, Elon Musk tweeted again. And wouldn’t you know it.
Dogecoin stock went down. Now that doesn’t mean that it won’t rise again and break a dollar. In fact, I saw a forecast that said it should reach $1 by 2030-2031. So if you want to wait 9-10 years to reach that dollar level, then you can. Could it reach a dollar quicker than that? Absolutely. But with these trendy stocks, it’s hard to say whether they’ll be good long term of fizzle out. Just look at GameStop.
What’s the Endgame for Dogecoin?
An increasing number of people around the world have started investing in cryptocurrencies and the trend has pushed the value of several digital coins to new highs. Dogecoin is the latest digital coin that has been making a buzz lately. Software engineers Billy Marcus and Jackson Palmer created Dogecoin in 2013, while deliberately naming it after a popular meme.
Dogecoin remained dormant for several years. However, it came into the limelight after it started gaining value earlier this year. Surprisingly, Dogecoin exploded in value last month and became one of the biggest cryptocurrencies in terms of market value.
The digital coin has outperformed all peers and its market value is currently hovering around $60 billion, bigger than the market cap of numerous long-established companies such as Ford and HP. There’s no Doge stock so you don’t find it on some of the larger brokers. Maybe we’ll see that change if it continues to be popular.
Is There a Doge Stock?
There is currently no Doge stock, as it’s a crypto currency. There aren’t even any stocks on the US exchanges that run in tandem or are sensitive to Dogecoin specifically. If you’re looking to purchase this coin, you’re going to need a broker like Webull or Robinhood, for example.
What Exactly Drove Doge Stock Value?
Several factors have fueled the value of Dogecoin over the past month. However, Tesla CEO Elon Musk’s optimistic comments were the biggest driver of the cryptocurrency. Musk called Dogecoin his favorite currency.
His tweet “Doge Barking at the Moon” on April 14 sent Dogecoin price up nearly 200 percent in the following three days. He also called it “people’s crypto” earlier this year. Most recently, he asked his Twitter followers whether Tesla should accept Dogecoin.
Musk has a massive following on popular social network platforms. Millions of people follow him on Twitter and many of them don’t hesitate to invest their money following his posts.
His tweets about Bitcoin in December made the world’s biggest cryptocurrency rise to new highs. The same thing is happening to Dogecoin after his regular tweets, bolstering the support for the coin.
A large number of people around the world have reportedly poured their savings to buy Dogecoin, hoping to get rich quickly. Big retail investors across different online forums are using hashtags such as “DogeToTheMoon” to spark a rally in Dogecoin price.
Many are comparing the latest Dogecoin frenzy to the GameStop rally earlier this year. GameStop shares suddenly skyrocketed more than 1,600 percent in January after a group of small investors on social news platform Reddit initiated a campaign, urging investors to buy GameStop stock.
Dogecoin traders are using similar tactics to drive the price of the cryptocurrency. They have somewhat succeeded in their efforts. Dogecoin price has skyrocketed more than 9,000 percent so far in 2021. That could lead to a Doge stock if it continues.
Will Dogecoin Make Me Rich?
That’s the goal of meme stocks. They’re trendy and people see it as a way to get some quick money. When a guy like Elon Musk jumps in, it’s hard not to think it’ll only go up. Stonks only go up right? They do until they don’t.
Elon Musk hosted Saturday Night Live and Doge stock went down. If you’d just bought into the hype, you weren’t feeling so hype anymore. So will Dogecoin make you rich? Probably not. And if that’s your reason for trading/buying it, then don’t be surprised to see your hopes dashed.
Is Dogecoin a Long-Term Investment?
Dogecoin runs on blockchain technology like the rest of cryptocurrencies. However, it has no lifetime cap, which means miners will keep mining millions of new Dogecoins over time. This makes Dogecoin highly inflationary with little incentive for investors who want to hold it for a longer period.
The latest gains we have seen in Dogecoin may not be sustainable in the longer run. Yet, those who bought the coin earlier this year have already made hefty profits. Looking forward, experts believe Dogecoin will face downward pressure with 5 billion coins entering the market every year.
Comparatively, Bitcoin has a lifetime cap of 21 million that will make it scarce and hard to get over time. The value of Bitcoin is expected to rise due to its finite supply, but its actual trading volume will drop once it reaches its lifetime cap.
Is It Too Late to Buy Dogecoin?
Investing in any kind of digital coin involves risk. The same thing goes for Dogecoin. Nevertheless, beginners can invest a small amount in cryptocurrency to see how it goes. However, spending a heavy amount on a cryptocurrency that started as a meme won’t be a wise decision.
Dogecoin fans believe the coin will hit the $1 mark very soon. On the other hand, many are calling it a highly risky investment despite Musk’s backing for the coin. So what does that to to Doge stock?
Those looking to buy Dogecoin can make an account on leading crypto exchanges such as Binance. Few online brokers, like Robinhood, also let people buy Dogecoin on top of assets including stocks and bonds.
Moreover, it is best to keep Dogecoins in a crypto wallet after buying them. There are many kinds of wallets, including those offered by exchanges. Buyers can also move them to their mobile device and even a physical hard drive with a private password.
Latest Developments
Dogecoin last week hit a 52-week high price of $0.73. Many were expecting the coin to touch the $1 price mark. But contrary to expectations, it fell back to $0.45. It has been trading lower for the last few days.
Many are linking the latest drop with the recent comments made by Elon Musk on an American comedy show called Saturday Night Live. Many were expecting Musk to further endorse the coin. However, he surprisingly called Dogecoin a hustle during his appearance on the show. Many sold their holdings in the coin, sending its price down more than 25 percent during the last 5 days. The coin is highly volatile, trading mostly between $0.43 and $0.50 this week.
Bottom Line
The cryptocurrency space is full of surprises. No one can make a 100 percent accurate prediction about the future of a coin. Experts have mixed reviews about the future of Dogecoin stock. But only time will tell how this latest frenzy will end. Until then, trade Doge stock smartly.
