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Have you ever heard of a cryptocurrency being started as a joke? They certainly don’t seem like much of a joke these days. There are many people investing in them, despite the fact that the currencies aren’t regulated by any banks or government agencies. However, The Dogecoin Cryptocurrency was indeed started as a joke, and its founder has warned people that they could lose substantial amounts of money. So what have people done?
They have invested in it more than most other crypto-currencies out there. What is the market cap for Dogecoin you ask? It is over $1B so that tells you something. You might think that the owner is only saying that, and it’s really a publicity stunt. Who knows, that could be true. However, if that were the case, wouldn’t there be updates released for the software and the currency? Sources say that there haven’t been updates now for over two years.
That sounds like a cryptocurrency bubble if you ask me. However, the price of Dogecoin continues to rise. If you haven’t heard of this currency, then you should take a look at what’s on the front. The picture of a cute dog is on the front, and it is indeed supposed to be a joke. Yes of course you can’t physically hold this currency in your hand, but the joke still applies. While it’s cute, it’s not supposed to represent a real investment opportunity.
I guess the inventor of Dogecoin never saw that coming. It makes you wonder if he has benefited financially since its release. You would think he has, even if it has nothing to do with holding some of the currency himself. Warning others to steer clear of the investment has had a reverse psychology effect though. It really makes you wonder what is going on in the world of cryptocurrencies.
You know that the creator of Bitcoin can’t truly be identified, right? Yet the creators of other cryptocurrencies can, and the one who created Dogecoin created it as a joke. There are many stocks out there that people like that don’t have a $1B market cap, yet a digital currency created as a joke has attained that status. In fact, nothing seems to slow down Dogecoin right now. Yet as an investor, you know not to buy high. Someone keeps doing it, however, because there is no real reason for this digital currency to keep climbing, but it continues to do so.
According to technical analysis though, people are saying that this currency is rated a ‘sell.’ You never know what’s going to happen when it comes to the next alt coin season though. It could get sparked again, and if it does, well, the sky is the limit. I wouldn’t take that as a recommendation to buy it and hold though. I wouldn’t invest in any currency, stock or fund when the creator says that it’s a bad idea. That means you would just be making an investment solely on the hype, kind of like a pump and dump.