Dogecoin price: Is Dogecoin worth buying? | City & Business | Finance


SpaceX chief Elon Musk is considered to have been the primary catalyst for sending the dogecoin price relatively sky-high in recent weeks. One of the most recent events saw the controversial South African billionaire claiming he had even purchased some for his nine-month-old son X Æ A-12.

The Shiba Inu meme dog-inspired crypto almost immediately spiked from below $0.07 (£0.097) to above $0.08 (£0.11) following the tweet.

Elon Musk tweeted: ”Bought some dogecoin for lil X, so he can be a toddler hodler.

The term “HODL” is popular shorthand among cryptocurrency traders when announcing the intention to not sell their holdings.

But although the recently-volatile crypto has since slightly dropped some of its gains, DOGE has uncharacteristically been holding steady for the past few days.

CoinDesk.com data indicates dogecoin is trading at $0.068674( £0.049) at 3pm on Saturday, February 13.

Is Dogecoin worth buying?

Dogecoin at its peak reached a market capitalisation of $10billion (£7.2billion) – approximately as much as Dropbox.

But despite dogecoin’s arrival in popular culture, experts warn against investing in cryptos such as DOGE without taking due care.

Jason Cozens, Founder and CEO of the London-based fintech company Glint, suggests Mr Musk’s endorsement could set a bad precedent

He told Express.co.uk: “Whilst the rise in the value of dogecoin might be tempting for private investors, as is the fact that it’s promoted by one of the richest individuals on the planet, this growth is likely to be unsustainable over the long-term.

“Cryptocurrencies are disproportionately influenced by a minority of ‘whales’ who control the vast majority of the asset – 95 percent of Bitcoin is owned by just two percent – just one of these big players exiting the market could cause the bubble to burst and the value of a portfolio to collapse overnight.”

“The recent trend of influencers promoting cryptocurrencies is a major cause for concern.

“The value of a viable currency should be based on its performance, not on the popularity of whoever happens to be tweeting about it.

“Consumers and private investors need to be very wary of tying their financial security to the popularity of an individual.”

But the fintech expert added cryptos are increasingly valid assets, particularly during economically turbulent times.

He said: ”However, the factors that are driving consumers towards cryptocurrencies will remain in place – people have been let down by the banking system and are desperate for an alternative.

“The money we entrust to banks is at risk and consumers are punished for saving as historically low interest rates, rising inflation and government action devaluing global currencies, through borrowing and the creation of more money through quantitative easing, combine to erode the value of cash.

“The rise of cryptos and alternative global currencies such as gold are a reaction to this financial inequality.”

The development coincides with dogecoin founder Billy Markus revealing what he has done since selling his share in 2015.

Crypto trader Scott Melker is another expert using caution it toying with paring with your money.

He told Express: “I love DOGE. That said, it started as a meme and very much still is one.

“It should go without saying that Elon Musk is posting about DOGE simply for entertainment.

“Fun and games aside, there is a wallet that holds 27 percent of the supply, valued at around $1.2B.

“The massive mystery wallet, plus the 19 other largest wallets, hold over 50 percent of the supply – not good tokenomics.

“Speculators have claimed that the mega wallets are in cold storage and owned by exchanges, but nobody knows for sure.

“DOGE is a great meme and riding the pump cycles is easy money. As an investment, it is pretty much worthless unless you like investing in jokes.”

The development coincides with dogecoin founder Billy Markus revealing what he has done since selling his share in 2015.

Markus took to the Dogecoin subreddit forum on Monday to clear up his lack of involvement in dogecoin.

He wrote: “I’m no longer part of the dogecoin project, I left around 2015 as the community started to strongly shift from one that I was comfortable with.

“I don’t currently own any dogecoin except what has been tipped to me recently, I gave away and/or sold all the crypto I had back in 2015 after being laid off and scared about my dwindling savings at the time, for about enough in total to buy a used Honda Civic.

“I’m half detached, but it’s weird that something I made in a few hours is now part of internet culture.

“It’s amusing to see Elon Musk talk about it. It feels silly, but there’s this huge upwelling behind it.”





Read Full Article

Latest articles

Related articles

Leave a reply

Please enter your comment!
Please enter your name here