Gone to the dogs: Dogecoin and the global economy

Image from Coinbase.com

Even if you’re skeptical of cryptocurrencies, there’s no denying the power they hold in the global economy right now. Prices of cryptocurrencies are booming, everyday investors are getting more and more involved in the latest cryptocurrencies, and cryptocurrency-related companies like Coinbase are going public. The traditional finance world is trying to latch on any way they can with Bitcoin-backed ETFs, dipping their toes into the world of crypto.

Yet, with all the talk of cryptocurrencies over the past few months and years, I don’t think even the most experienced crypto experts expected to see the absolutely exponential explosion of Dogecoin. According to Coinbase (which interestingly enough, does not support Dogecoin), its price has gone up 25,510% this past year! NEVER in the wildest dreams of a traditional investor would they think it possible to see returns like that.

But is it a worthy investment? That’s for everyone to evaluate and decide for themselves, however with an asset that’s grown to such a valuation as Dogecoin has, I don’t think it can be brushed off as a joke. Does 25k% returns sound like a joke to you?!

Now, this is not a recommendation to get in or sell your Dogecoin, just a simple statement that it’s something worth keeping your eyes on. Don’t brush it off just because it’s a coin that stemmed from a 2013 meme (and by the way, the dog behind the meme is still alive).

Unfortunately, like Bitcoin and Ethereum, I think the majority of profit from Dogecoin has already been made by early investors when the coin had a few zero’s in it’s valuation. There’s no way 25k% year over year increase in value is sustainable. That’s just ridiculous. Regardless, there is still room for growth and many people are waiting for Doge to hit $1. Perhaps it will with Elon’s upcoming SNL appearance? Time will tell.

If I’ve learned anything from cryptocurrency, it’s that it usually doesn’t pay off to stay skeptical of their monetary value and potential growth. Sure, there are thousands of “shitcoins” out there that you should probably stay away from, but for the few coins that rally the reddit hype – it might be worth dipping your toes into (if you can take the risk).

Where to buy Dogecoin, if you are interested? A very good question, as it’s amazingly still not on Coinbase’ exchange. You can buy it on Robinhood (which may be why the app is still gaining traction after the $GME disaster), Binance, and other exchanges. Remember, with cryptocurrencies it is especially important to never invest more than you are willing to lose.

So, fre$hies, what are your thoughts on $DOGE? Whether you’re in or out, may the markets be with you!

Published by Grace

Passionate about personal finance and helping people take control of their finances.

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