The Truth About Dogecoin Can You Should Invest in 2021
Introduction Of The Truth About Dogecoin Can You Should Invest in 2021
The Truth About Dogecoin Can You Should Invest in 2021. What dogecoin is the holders of dogecoin that are becoming overnight millionaires and my thoughts on what will happen to the price in the coming months and before I start if you guys want some free bitcoin or free stocks check out the description to get two free stocks of weeble one free stock with Robinhood or ten dollars of free bitcoin with coin base.
So when dogecoin was launched in December 2013 it immediately got a pretty big cult following but its value never even came close to being worth one cent its price per coin typically floated around the 0.01 to 0.02 cent area and this trend continued for the next three years or so with some brief and inconsequential humps and valleys here and there however things changed in march of 2017 when dogecoin began to experience its first substantial price pump this price pump was brought about by the 2017 crypto boom.
When more and more retail investors were putting their money into the crypto market
When more and more retail investors were putting their money into the crypto market and at this time dogecoin reached a peak value of 0.4 cents but the momentum wouldn’t stop there as dogecoin’s first pump was immediately followed by a second even larger pump between late 2017 and early 2018. now because of the crypto boom of 2017 bitcoin which was and still is the leader of the crypto market reached an insane high nearing almost 20 000 in value and causing other coins’ values to continue increasing including dogecoin.
So in the year, 2018 dogecoin experienced two price pumps the first being brought about before a market downturn and the second being brought about because of an announcement regarding a bridge between the ethereal and dogecoin blockchains either way during each pump dogecoin’s price jumped at least a hundred percent now it wouldn’t be until early 2021 that dogecoin would truly experience the fame and popularity that it is now known for if you guys don’t remember what was happening during this period late January and early February 2021 was the period when we witnessed the game stops short squeeze.
This event you guys were extremely important in attracting the attention of millions of retail investors that had plenty of money to invest in dogecoin came into play during this time when more and more people started talking about dogecoin on Twitter the most notable being Elon musk so as a result dogecoin shop to an all-time high of nearly nine cents which equated to more than one thousand percent gain and then throughout 2021 dogecoin has done nothing but go up to minus some pretty big corrections as it now sits at a price of over 50 cents per coin by the time you guys are watching this may have changed I don’t know if it’s a lot lower.
It could be the same it could be much higher who knows but I do know that throughout its less than a decade lifespan filled with plenty of ups and downs dogecoin’s value has essentially multiplied by the thousands this type of increase is unprecedented and the fact that dogecoin went up in value that quickly and that dramatically now begs the question what is dogecoin actually and why are people putting their money into it so what is dogecoin is a cryptocurrency that was launched in late 2013 by billy Marcus and Jackson palmer who both were at the time engineers for IBM and adobe respectively now initially Jackson Palmer wanted to combine.
The two things that were taking over 2013 and were bitcoin and the Doge internet meme as a result
The two things that were taking over 2013 and were bitcoin and the Doge internet meme as a result he purchased the domain dogecoin.com and he launched the website as a joke he also publicized his website on Twitter only for his tweet and the dogecoin website to be discovered by his future partner billy Marcus soon the joke that was dogecoin became a legitimately programmed open-source cryptocurrency with a substantial red following it’s underlying proof of work technology was inspired by that of litecoin and also dogecoin differs from bitcoin and that dogecoin has no limit on the number of coins that can be mined so, in other words, there is an unlimited supply of dogecoin out there.
This might make you guys wonder if there’s no scarcity for the product what makes it so valuable and why are so many people pouring so much money into this coin to the point where its market cap is well over 50 billion dollars it’s really hard to say but I do know for a fact that the people that invest in dogecoin early and held on for a long time have seen their net worths increase substantially the reality is that although dogecoin has an unlimited supply of coins it still costs money and time for dogecoins to be mined and because there is a pre-existing cost of goods sold for the coin it must entail some sort of inherent value.
But more significantly dogecoin is a cryptocurrency that people want to purchase whether it be jokes or memes or you know a lot of people have a lot of legitimate faith in this coin being a majorly influential player in the cryptocurrency revolution either way there is a concrete and refreshing demand for this coin as cryptocurrency as a whole has become this cool new space for retail investors to speculate and invest in a novel growing market with a ton of upside potential but also risk and because dogecoin has grown so much in the past eight years of its existence there have been a lot of people who’ve struck it rich with this coin.
Which even further incites more people to invest in dogecoin right now I’d say that the most talk about dogecoin millionaire in the media is going to clobber contest don’t know if I’m pronouncing his name right but he claimed that after investing nearly 200 000 in dogecoin when it was trading at about 4.5 cents he became a dogecoin millionaire in only two months in April and that is when dogecoin grew to be 45 cents per coin so yeah basically this guy he 10xed his investment in two months which is ridiculous and you know that’s not a common occurrence and besides this guy, I’m sure there are so many other dogecoin millionaires many of whom have managed to stay under the radar one of my good friends she put in a significant chunk of money back.
As a result she’s now a multi-millionaire just because of this one hunt she had back when it was worth
When dogecoin was worth under one cent per coin and as a result she’s now a multi-millionaire just because of this one hunt she had back when it was worth so little and also sticking it out and not selling at every price increase that’s one big reason why I say holding onto a coin or a stock is generally in the long term going to be good only the people that had the patience and the conviction in dogecoin that kept holding after all those price increases those are the people that became millionaires along the way so many people sold out when you know they saw a 20 price increase and yeah that just really shows you guys that sometimes patience can pay off.
But I will say that regardless of the price movements of dogecoin you should not and you should never throw your money at something that you fully do not understand I’d recommend you guys to read into dogecoin figure out what it is how it works and really what is the whole basis of its value the price of dogecoin I think is tied to the internet and because it’s so heavy on speculation that really makes it a pretty dangerous thing to put your money into and another interesting fact you guys dogecoin now has a higher market cap than twitter ford and many other well-established well-known companies and before you put your money into cryptocurrency or dogecoin consider.
The fact that cryptocurrencies are still very volatile and there is such a thing as the crypto market cycle if you decide to invest in dogecoin today the coins price can easily drop significantly tomorrow because it is more volatile than stocks and it could be months or even possibly years before you see any significant returns on your investment but on the flip side it could really increase tomorrow and you really might see some big gains in the short term but it just really is impossible to tell recall that it took three years for dogecoin to break out of its value of 0.02 cents and during that period in 2017 up until now Deutsche has faced plenty of steep dips.
Before recovering are you guys willing to watch your investment go through that sort of turmoil without any guarantee of recovery like I mentioned before if you are an emotional trader then dogecoin is something that you know might be pretty tough for you so as far as the price of dogecoin I agree with most of you that this is unprecedented it’s really rare that a coin you buy four months ago will 100x in value depending on your risk level it’s really up to you whether or not you want to risk your money in an asset like doge sure I do think that we will see new highs for dogecoin in the coming months but I also think that we will see some really big corrections as well.
We will see another higher price ceiling at some point but not without some serious volatility and maybe a major correction
So if it comes down to you timing the market I’d say that that is a really tough thing to do and most people that try and time the market lose compared to those that just hold for a long time almost every investment that I’ve bought and sold I should have held longer I mean locking in some gains is smart to offset your risk but in the long term, most things will go up based on historical data I will say that this is not a traditional investment backed by a balance sheet by-products or any revenue so it is tough to save for a mean coin like this whatever the case we now have a new price ceiling reached for dogecoin and to be honest I do think that.
We will see another higher price ceiling at some point but not without some serious volatility and maybe a major correction or two if you guys are emotional don’t buy dogecoin because it’s going to make you lose a lot of sleep if you have a high conviction for what this coin stands for and the effects of social media on pricing then I’d say feel free to buy it and hold anyways those are my thoughts about dogecoin I’m not a financial advisor so make sure you guys take this video as entertainment purposes only and before investing in anything.