First, what is Dogecoin?
Software engineers Billy Markus and Jackson Palmer created Dogecoin in December of 2013 and branded the cryptocurrency’s logo using a meme popular at the time, a Shiba Inu dog.
Despite starting as a joke, Dogecoin actually sponsored a NASCAR driver back in the 2014 Olympics as seen below.
Dogecoin arose in early 2021, Dogecoin gained cult status on Reddit’s WallStreetBets message board. Today Dogecoin gave exploded in value and gained more than 5,000% in 2021.
Among its backers is SpaceX and Tesla CEO, Elon Musk, who called Dogecoin his favorite cryptocurrency, Mark Cuban, and modern banks like Revolut and Coinbase also support it.
Musk also named Dogecoin the “people’s crypto” and promised to plant a physical Dogecoin token on the moon, and Cuban also now allowed Dogecoin as a payment of method for his NBA team, Dallas Mavericks.
Elon has been a proud supporter of Dogecoin in the past several months. Dogecoin even made it into his Twitter account where he often posts about it.
In May, Elon tweeted that he has been working with Dogecoin developers to “improve system transaction efficiency.” and he also reportedly told a Dogecoin developer that his goal is to make Dogecoin easy enough to use that investors could use it to pay for a cup of coffee.
Other than that, he also consistently supports the Dogecoin community, as you have seen on Twitter. He has tweeted countless dogecoin memes, which have seemingly impacted its price both positively and negatively.
Elon Musk even said that Dogecoin is his favorite cryptocurrency and hinting at the possibility of Tesla accepting Dogecoin as a method of payment, which could then boosts company sales.
SpaceX also announced to launch of a moon mission funded by Dogecoin in 2022, which could propel not only their rocket but Dogecoin’s value.
Cuban, the billionaire investor, entrepreneur, and owner of the NBA team, Dallas Mavericks said that Dogecoin might not be like Bitcoin in terms of value, however the strongest medium of exchange.
As a matter of fact, Dallas Mavericks started accepting Dogecoin as a method of payment for their merchandise in March of 2021 and has experienced a substantial amount of sales.
“It’s a medium that can be used for the acquisition of goods and services,”
“The community for doge is the strongest when it comes to using it as a medium of exchange.”
The keyword here of course is ‘community, as it’s widely believed among the Internet that being community-driven in the future.
A lot of financial experts are extremely skeptical of cryptocurrencies as a whole, not only at Dogecoin, due to their speculative nature and warn that people should only invest what they can afford to lose.
However, if that’s the case, the developers could always put effort into its technological development to make the overall system better.
Power of community
The true power here lies in the people. The community.
While Bitcoin plunged 30% to near $30,000 at one point in May of 2021, continuing a major sell-off in the cryptocurrency markets including Ethereum and Dogecoin that late May, many believe this is just a setback.
The majority of analysts also predict the crypto’s recovery starting August or September of 2021. As a matter of fact, Bitcoin, Ethereum, Dogecoin has started going back up again in the past few weeks in the month of August.
Bitcoin is now back to 50,000 USD and Doge is now at 0.30 USD per coin.
What does this mean?
Consolidation. Now could be the perfect time to go big again with crypto, especially with Dogecoin because the market is on the verge of recovery and eventually, a massive rise in value in the following months.
Rewind back to last September of 2020, a lot of predictions have been made that the crypto market will rise by end of 2020, which was accurate to what happened.
It could follow the same pattern this year, however, it could happen earlier.
According to the panel, surveyed by price comparison website Finder, polled 42 crypto experts on what they expect to see happen to the dogecoin price in coming years with 80% of them branding dogecoin a bubble.
Most (55%) of those who said dogecoin is a bubble think its price will collapse this year, while 42% think the dogecoin bubble will pop in 2022 and 3% in 2023.
In this Forbes article, it states according to the panel,
The panel average, which puts the Dogecoin’s price at 42 cents at the end of 2021, sees dogecoin hitting $1.21 by 2025 and $3.60 by 2030 though the experts are starkly divided with some confident the meme-based cryptocurrency will soon crash to zero and others forecasting a huge rally to $10 per dogecoin.
At the end of the day, no one knows exactly how will the market proceed in the next several months, however, if there’s one thing we know is that cryptocurrency has now the community to support it, so the trend will go as how the community will support it.
This article is for informational and entertainment purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.
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