Dogecoin has the crypto buzz. Elon Musk, Mark Cuban, and even beef jerky brand Slim Jim have got themselves into it.
Individual investors have poured into the cryptocurrency, which began out as a joke less than a decade ago and has been on a wild ride this year. According to CoinDesk, Dogecoin temporarily soared as high as 74 cents last month, leading up to Mr. Musk, the billionaire CEO of electric car maker Tesla Inc., hosting début on “Saturday Night Live” on May 8.
However, since Mr. Musk’s SNL appearance, the cryptocurrency has dropped in value, recently trading at around 42 cents on June 2, a drop of nearly 43 percent from its previous high. During the SNL program, Robinhood Markets Inc. tweeted that “having troubles with crypto trading,” noting “high trading volume and volatility” in a follow-up tweet.
Several times during Mr. Musk’s appearance on Weekend Update, the show’s satirical news section, cast members Michael Che and Colin Jost asked him to clarify what dogecoin is. After Mr. Che remarked, “So, it’s a hustle?” Mr. Musk laughed and responded, “Yeah, it’s a hustle.”
Now, what is Dogecoin, is it a joke, will it hit 1$ soon?
What is Dogecoin?
Dogecoin is a cryptocurrency that started its journey in 2013 as a joke. It’s a sarcastic tribute to bitcoin, created only for the goal of eliciting a few giggles.
It’s called after an online joke featuring a Shiba Inu dog with terrible spelling habits, therefore “doge” rather than “dog.”
What makes it so Popular?
Honestly, nothing. However, Musk, who recently became the world’s richest man, is a huge supporter of cryptocurrencies. Musk joined the doge train last year, primarily as a joke, but over the course of many months, his social media remarks on the cryptocurrency lent it more and more credibility.
On Jan 28, Mr. Musk tweeted a faux “Dogue” magazine cover. It isn’t clear what brings it into his mind.
Since then, he has to continue tweeting about bitcoin. He once uploaded a meme with the Shiba Inu dog overlaid over Simba’s face, based on the film “The Lion King.” “Who let the Doge out,” he wrote at another time, as well as “No highs, no lows, only Doge.” then tweeted what he characterized as an educational video titled “D is for Dogecoin,” maybe he was attempting to make it helpful.
Dogecoin has entered into the list of top four cryptocurrencies by market value, according to Coinmarketcap.com. it went ahead of bitcoin, ether, and Binance coin.
Even with the fall of dogecoin, its market value of nearly $55 billion still exceeds that of Kraft Heinz Co. and Dollar General Corp.
Fans of dogecoin around the globe are enthusiastic for it to reach $1.
Will Dogecoin hit 1$?
The multibillion-dollar question is this: will it hit 1$?
Dogecoin’s total value has risen to moreover $65 billion US because of frantic activity. Dogecoin is now the world’s fifth most valued cryptocurrency. It is valued at more than Telus, Loblaws, and Canadian Tire combined.
I wouldn’t be shocked if Dogecoin reaches $1 in the near future. The Dogecoin market performed admirably for early adopters. However, if you’re thinking about buying a very speculative asset that’s already up 70x or more for the year, I don’t believe the risk is worth it. Also, if you’re a new trader who’s made a lot of money, keep in mind that your broker sends your 1099 to the IRS immediately with the amount you made trading. Ignore it, and you’ll be hit with a bill sooner or later. It might be a costly lesson if you’ve lost the money in the meanwhile.
And it’s possible that the sky is the limit. Musk’s fortune allows him to wait and see what happens with the doge.