Best long-term investment channel is not what investors want from Dogecoin. But there are some investors plunged into Dogecoin in the hope that the uptrend of this coin will last forever.
When will the fever cool down?
When Elon Musk made the first tweets about Dogecoin, no one would have expected investors to go crazy about pouring into the coin so much. At one point, the cash flow into Dogecoin reached $ 69 billion, surpassing XRP to become the fourth-largest cryptocurrency by market capitalization, according to CoinMarketCap.
Right now, Dogecoin is still trading stably around $ 0.2, only and only if the following two factors simultaneously don’t happen: Elon Musk doesn’t tweet and the shark doesn’t pump & discharge.
Indeed, a large reserve of 100 billion original Dogecoin coins currently resides in a limited number of wallets. Meanwhile, Elon Musk, since earlier this year, has repeatedly hinted at Dogecoin, causing the virtual currency to continue making new highs.
Can not be a best long-term investment
This does not mean that Dogecoin will become the object for Elon Musk and the sharks to manipulate the market forever as one of the best long-term investments. With unlimited reserves and circulation of 129 billion dong, Dogecoin is worth $ 0.2 is extremely unusual as the virtual currency has no other benefits than to speculate. No blockchain, no technology, there’s nothing behind it.
Therefore, investors looking for waves to surf with Dogecoin or any other altcoin (grass coin, junk coin) are risking their savings. If it is margin or futures contracts combined with leverage, it is nothing but a bet that can cause investors to burn their accounts in a moment or to have a best long-term investment channel.
The flow of money into the crypto market cannot be endless and neither can Dogecoin, even it’s not a best long-term investment channel. When investors realize the meaninglessness of Dogecoin, they will gradually leave it without the control of Elon Musk, Mark Cuban, or any other billionaires. Investors simply run out of money in a zero-sum game, with no winners without losers.
This process is slowly happening with Dogecoin, from a peak of $ 70 billion to just $ 34 billion. Trading volume in the past 24 hours was only 7 billion USD compared to the time when a cash flow amounted to 69 billion USD poured in.
This reflects the top swingers shifting from surfing to hold on to Dogecoin as one of the best long-term investments. But with infinite reserves and every year more than 5 billion newborns, the dream of getting rich from Dogecoin is very meaningless.
However, the Dogecoin craze is likely to cool down and return whenever Covid-19 remains unregulated globally. Because at that time the idle cash flow of people tends to pour into the crypto market more, but word-of-mouth virtual currencies like Dogecoin may become the thing that attracts the most attention.
In a worst-case scenario where Bitcoin bottoms out and causes markets to crash, grassy coins like Dogecoin will inevitably suffer the same fate.
Bitcoin is currently only 21% down from a peak of $ 64,000, but Dogecoin is down nearly 50% from its peak of $ 0.41 on April 19. That shows the Dogecoin fever is cooling down.
Mark Cuban: Dogecoin is better than a lottery ticket
Is Dogecoin a practical joke? Yes, indeed. Is it the best long-term investment you’ll ever make? No, it’s not true. But, according to billionaire Mark Cuban, it’s better than a lottery ticket.
The owner of the Dallas Mavericks NBA team said the rise of the “meme” digital currency is the “craziest story ever” and tried to address questions about the token embodied by a smiling Shiba Inu on “The Ellen DeGeneres Show.”
“Overall, when someone brings up Dogecoin to you and asks you if it’s a good investment, I would say it’s not the world’s best investment but it’s a whole lot better than a lottery ticket, and it’s a great way to learn and start understanding cryptocurrencies,” Cuban said.
And you know what? I’ll tell you something else. It has the potential to rise. The second part is that if it doesn’t go up and you want to spend it, you can go to the Mavericks shop and buy merchandise.”
Dogecoin has long been lauded for its entertainment and educational value by Cuban. He revealed in March that Mavericks fans could use it to purchase tickets and merchandise. Bitcoin, Ethereum, and other cryptocurrencies are also accepted by the team, but not a best long-term investment.
When DeGeneres asked Cuban about investing in cryptocurrencies, he said, “Bitcoin is like a digital version of gold, Ethereum is a digital version of a currency and then you got Dogecoin, which is just fun.”
Dogecoin’s market cap is currently around $35 billion, down from more than $50 billion earlier this month. Dogecoin began as a joke between two programmers — a spoof of a cryptocurrency that was supposed to be useless. Its detractors argue that it trivializes investing and introduces risks that could damage investors who get caught up in the hype of a best long-term investment plan. Mike Novogratz, a well-known cryptocurrency investor, isn’t a fan.
Despite this, the price of Dogecoin has skyrocketed in the last year, fueled by internet memes and even some support from big names like Elon Musk.