“One word: Doge”, a quote from the head of Tesla and SpaceX, Elon Musk, cryptically implying the upcoming rise of the cryptocurrency Dogecoin. Trading at a less that 0.006 this past January, doge coin has already seen record growth reaching slightly above 8 cent. As retail investors move to find the next GameStop (GME) stock, eyes have turned toward Dogecoin as the next possible option, but does that mean it’s the next Bitcoin?
While it certainly has the potential, Bitcoin has had significantly more time to grow since its establishment in January of 2009. Doge coin on the other hand has only been available for purchase since January of 2012; a three year difference in their development. With that time difference Bitcoin was able to create a much more stable footing in the market place as investors look to make cryptocurrency a legitimate asset, while the investors of doge coin seem to be looking to make a quick buck. Even with their unprecedented growth, the future cryptocurrency having any intrinsic value seems glim. Top investors like Mark Cuban see the digital currency as an intuitive investing game stating he only does it “for [his] son and [they] watch it and discuss all its price movements and why they occur. It’s fun, it’s exciting and educational”.
Without the certainty of becoming anything of real intrinsic value, why do you think investors continue to risk their money trading cryptocurrency?
2 thoughts on “Is Dogecoin the new Bitcoin?”
I think investors like to risk investing in cryptocurrencies just for the fact that it might bring them millions. Its kind of how bitcoin used to be worth nothing but now it cost a couple thousand just for 1 bitcoin.
I believe that investors continue to risk their investments in crypto as it unknown which currency could blow up, and that risk could pay off for them. Furthermore, Dogecoin is a trending currency at the moment, any given day it could have the rise investors so desperately desire.