2021 is the year of active growth of previously unknown cryptocurrencies. Dogecoin cryptocurrency is no exception. Over the past few months, eyes have been turned in its direction. What makes it stand out among other cryptocurrencies? Dogecoin is a currency that was not invented to solve some global problem, but for the sake of a joke. It has grown dozens of times in the last two weeks.
Unlike bitcoin, the creator of Dogecoin is not anonymous, his name is Jackson Palmer. He created his cryptocurrency in 2013. The joke turned into reality - Palmer created his cryptocurrency for fun, in order to show everyone around him that investing huge amounts of money in this fickle industry is complete nonsense.
The meme coin was launched into the digital space on December 8, 2013. But over time, it turned out that its capitalization began to grow to hundreds of millions of dollars.
Our editorial team decided to conduct a survey among experts in the crypto space and find out whether it is worth paying attention to this cryptocurrency and investing in it?
Sergey Arestov, co-founder of BitCluster, gave his comment:
"The Dogecoin project was created as a joke coin with unlimited issuance.
For years its exchange rate never rose above $0.003, and in May 2021 its price was close to $1. Over the last year the growth of more than 300 times and the market capitalization of more than 60 billion dollars - this is not a joke. The fact is that Doge has become Ilon Musk's favorite coin, and as a rule, everything Musk touches turns to gold. Musk has a mission to make humans an interplanetary species! And all of his projects are helping to go toward that great goal. If we imagine that Musk achieves his goal, Dogecoin could become the first interplanetary payment system. In that case, the prospects of this "dogecoin" are very big!"
It is indeed not for nothing that the expert mentioned Ilon Musk's influence on the crypto-world. "Thanks to" his tweets, Dogecoin has reached unprecedented heights, and we cannot say how it will affect the digital space in the future. Many other experts have also noted his impact on the coin's growth.
If it's worth investing in Doge now, Danatar Atadjanov, Brand Manager of crypto platform OXLY.IO said:
"Definitely worth paying attention to, it is an excellent example of the shift in values of ordinary investors, for whom it is not the product that matters, but the excitement and the game.
It is definitely worth investing (depending on how much you care about Musk), if only for the fun and involvement in a unique phenomenon, even by the standards of crypto. I think Musk is in for a very big game that he won't just quit, unless, of course, he wants a curse from his ardent fans.
Investor Alexander Voronkov advised to be careful with such speculative cryptocurrency:
"Doge is a great opportunity for speculators, especially considering that a famous schemer like Elon Musk had a hand in the extremely large rise. It's safe to assume that even after 20,000% growth in the last year, this cryptocurrency can give even bigger returns, but I would recommend long-term investors to be more careful, because the higher the growth, the more it usually hurts to fall. In my opinion, long-term investors are better to focus on more or less stable assets, such as Bitcoin or Etherium, especially since the latter can give huge growth potential in the near future.
The analytics department of cryptocurrency derivatives exchange Bybit made an interesting point:
"DOGE is interesting because it represents an alternative to bitcoin with the consensus of the Generation Z community. DOGE followers are for the most part "a relatively young audience. The founders of the project from the beginning appealed to younger users, and this distinguishes them from the followers of bitcoin - the millennial generation with a pronounced interest of institutional players and a serious presence of investment funds. The adaptation of the coin by institutions, the big market players, will be in question for a long time to come, but we cannot deny the fact that the younger generation supports and believes in Doge, despite the meme origin of the coin."
Speaking of the significant impact on cryptocurrencies mediated by the media, an expert on legal support for large IT projects, Eugene Kudryashov, considered the issue from the perspective of legislative regulation:
It all comes down to the U.S. antitrust regulations, according to which individuals (both individuals and legal entities) who have significant influence on the economy have no right to speak out in public about their purchases of securities, currency, including cryptocurrency.
U.S. law suggests huge fines if the aforementioned individuals in the media express a desire to buy/sell the cryptocurrency they own. At the same time, it is obvious that the holder of the cryptocurrency is interested in the growth of its value (with the aim of further profitable sale).
Hence, there is a situation in which it is necessary to stir up interest in the cryptocurrency (for its growth), but it is difficult to do it directly. What is the possible way out of the situation? Very simple - constantly keep cryptocurrency as a phenomenon in the information field. To comment and stir up interest not to that cryptocurrency, which you own, but in general, for example, DOGE.
Information agenda of all countries of the world concerning Ilon Musk only speaks about cryptocurrency, yes, not about bitcoins that Ilon Musk owns, but in this case it is not of key importance, because interest in any cryptocurrency will grow against interest, and accordingly bitcoin rate will grow.
The above conclusions are also supported by the analysis of bitcoin rate growth. In addition, the trend of its growth today is also noted by analysts, for example, CEO of Morgan Creek Capital Management, Mark Yusko, in his forecasts says about the rise in price of bitcoin to 250 thousand dollars in five years.
It turns out to be a situation in which Elon Musk is not violating U.S. antitrust laws with his remarks about DOGE cryptocurrency, but at the same time influencing the bitcoin price he owns.
Ilon Musk is a 48-year-old American inventor and billionaire who is changing the movement of cryptocurrencies with one move of his hand. At the moment, the entrepreneur's fortune is estimated at $42.1 billion. As noted above, interest in cryptocurrency is growing on the back of Musk's interest.
Alexei Gudkov, a researcher and legal advisor with extensive experience in blockchain, commented on the matter:
"The value of cryptocurrency depends on the number of users, which is determined by the prospects of its use.
The prospects for using Doge in a particular project are uncertain and very remote in time. Doge could be used for investment as an extremely risky asset.
Expert Alexander Zheurov also noted the speculative nature of the meme coin:
"DOGE is primarily interesting as a speculative instrument, my friend.
The prospects are similar to, say, futures, for example WTI went below zero.
We are left to speculate as to how long term the Doge's rise is. Many experts are of the opinion that the cryptocurrency will soon come to an end. The rapid growth will be replaced by an equally lightning-fast fall.
To find out how Dogecoin's future development will play out, stay tuned.
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