Is Dogecoin the future? How far could this crypto go? Its price has risen sharply in recent weeks, sparking a cryptocurrency bubble.
Dogecoin is a peer-to-peer open source cryptocurrency was popularized by Elon Musk e n a meme. In recent days, investors have seen huge fluctuations in the value of the digital token, which rose after the SpaceX CEO posted an updated photo of his Shiba Inu pup, Floki.
But how far could Dogecoin go? Michael Kamerman, CEO of broker Skilling, discusses future prospects for meme-inspired cryptocurrency.
“The parody coin often attracts investors, due to its status and popularity on social media and with celebrities,” says Kamerman.
“The increased attention to Dogecoin, which was originally created as a parody coin, may seem attractive to investors due to its volatility, but scalability and security issues must be resolved in order for the coin to ever have intrinsic value.” he told Express.co.uk.
Similarly, he argues that these are carried away by the headlines, tweets, fame or endorsements of companies, and although “mainstream” investors can dismiss this, it is what attracts the masses to cryptocurrencies.
“However, online communities, as well as encouragement from high-profile corporate moguls like Elon Musk, are the key drivers behind Dogecoin’s success,” he explains.
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How has Dogecoin contributed to the Bitcoin system?
Dogecoin was founded with the intention of reaching a wider audience and spreading a positive message among young people. Despite the light-hearted nature of this cryptocurrency, it offers a number of practical advantages, including:
- It is frequently used to raise money for charitable causes.
- Compared to bitcoin, it enables significantly faster mining.
- Transfers are faster and its algorithm allows mining up to 100,000 million units, much more than the 21 million limit of bitcoin.
- Beginning miners will have easier access to cryptocurrency.
- For individuals who make content for Reddit or YouTube, this is the best option.
Is Dogecoin the future? What made the price jump?
The Reddit community decided to fight investment capital by closing the GameStop game stores at the end of January 2021 and wanted to try their luck with the price of dogecoin based on this information and knowing that it was possible to grow the value of this company.
It is worth remembering that the price of any cryptocurrency is determined by the amount of support it receives from its consumers.
Dogecoin has risen in popularity in recent weeks as a result of celebrity endorsements. It was the “people’s cryptocurrency,“ according to Elon Musk. It also included other messages that obliquely promoted the coin.
Its price has skyrocketed since then. Other celebrities, like Gene Simmons and Snoop Dogg, also supported her.
As a result, the current popularity of dogecoin is based solely on the support it has received from the general public. In fact, the official Twitter account urged fans to stay calm and avoid making hasty purchases. From that it will also turn out whether Dogecoin is the future or not.
Is Dogecoin a good investment?
The technological roots of Dogecoin are quite similar to those of bitcoin. However, there are some differences that make it a desirable cryptocurrency.
What does the future hold for Dogecoin?
The question that everyone wants to know the answer to is whether dogecoin is the future and whether it will survive in the short or long term. The reality is that investors on the Reddit platform are forecasting a price recovery. In fact, it is expected to reach the price of one dollar in the next few months.
Investing in dogecoin is undoubtedly dangerous, but the magnitude of the risk also presents fantastic possibilities for profit. There are two ways:
- You can guess if its price goes up or down. You would not be buying the currency directly, but benefiting from price fluctuations.
- Buy dogecoin and keep it in your electronic wallet in the hope that it will go up in value over time.
Being such a unique currency, only experienced investors know how to profit from it. Even with that said, everyone agrees on one thing: don’t buy this cryptocurrency just because of celebrity endorsements.
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