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Dogecoin’s Highs and Lows: Is It Still Worth an Investment?

GOBankingRates
GOBankingRates
 2021-09-23
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If you’re bored with index funds and you’re ready to roll the dice on one of those sexy and mysterious new alternative investments, you have plenty of options . One of those options involves a Japanese dog, Elon Musk and what appears to be fake money from a toy cash register.

Read More: What Is the Next Big Cryptocurrency To Explode in 2021?
See: How Does Cryptocurrency Work – and Is It Safe?

That’s Dogecoin (DOGE), and it’s here to rescue anyone who couldn’t bear to wait one second longer for the latest next-big-thing cryptocurrency that promises to out-Bitcoin Bitcoin.

What Is Dogecoin?

Dogecoin is a joke — or at least it started out as one. Two software engineers — IBM’s Billy Markus and Adobe’s Jackson Palmer — created Dogecoin in 2013 to lampoon all the altcoin wannabes that popped up after Bitcoin rose to blockchain fame. As a logo, they chose a Shiba Inu from a meme called Doge, which went viral that same year.

The Economy and Your Money: All You Need To Know
Find Out: Where Does Cryptocurrency Come From?

Like Bitcoin and all cryptocurrency, Dogecoin is:

  • Decentralized — it’s not issued or backed by a government or bank
  • “Mined” independently and recorded on a blockchain
  • Anonymous — privacy is part of the reason crypto is so popular

Unlike Bitcoin and other “deflationary” cryptocurrencies that exist in limited quantities, there is no cap on “inflationary” Dogecoin.

It started as tech-geek satire, but Palmer and Markus were skilled, experienced and imaginative professionals. Their blockchain, proof-of-work process and minting procedures were stable, efficient and secure. Crypto wonks recognized its potential and the fake currency began amassing a very real following.

More Economy Explained: Ethereum (ETH): What It Is, What It’s Worth and Should You Be Investing?

It already had achieved cult status by the time Tesla CEO Elon Musk started tweeting about Dogecoin in 2021 . The props from Musk made Dogecoin a household name and sent its value soaring. It’s now one of the most-used altcoins, particularly for tipping on social media.

How Much Is Dogecoin Worth?

Investors who are put off by the $36,000-plus asking price of a single Bitcoin will be happy to know that comparatively, Dogecoin trades at a bargain. As of March 19, Dogecoin was trading at $0.0585 per coin. But as of May 4, the price was up to $0.53, according to CoinDesk — a huge increase for people who had already bought in. It has since dropped down to $0.23, as of June 23 — still a big increase if you bought way back when.

Find Out: Why Some Money Experts Believe In Bitcoin and Others Don’t

Is Dogecoin a Good Investment?

If you’re reading a basic primer like this, you’re probably better off sticking with your ETF until you learn the ropes. Investing in crypto is not like buying shares of Walmart or UPS. First, it’s incredibly volatile. Wild price swings that would make the common investor queasy are par for the course.

The way that cryptocurrency is generated, distributed, validated and accounted for is completely foreign even to most tech-savvy investors. It’s not backed by any bank, government or corporation, and despite the fact that it feels like everyone’s talking about it, crypto is still a highly experimental niche concept that the vast majority of people know almost nothing about and are nowhere near adopting.

Read: How To Invest In Cryptocurrency: What You Should Know Before Investing

There’s a steep learning curve to investing in cryptocurrency. It requires immersion. If you’re just recently hearing about Dogecoin, it’s probably best to invest time in research before you invest a single dollar in an imaginary coin adorned with a picture of a smiling dog.

This article is part of GOBankingRates’ ‘Economy Explained’ series to help readers navigate the complexities of our financial system.

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Last updated: June 23, 2021

This article originally appeared on GOBankingRates.com : Dogecoin’s Highs and Lows: Is It Still Worth an Investment?

Comments / 61

Susan Starr Shepperd
04-25

Before you down in . go read up on it. Doge is amazing the people are great. We have became family. Go see who all is behind us . Watch the doge car in nascar . So many buisness are already accepting doge. and we are just starting. if any thing just put in 10 dollars. you waist more than that in a week. Now dont touch It. imagine had u done that with bitcoin in 2011 . yeah would be nice huh. well come check us out. ..And join the doge family on Twitter.....

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