Everyone seems to be talking about Dodgecoin this year so we wanted to take a quick look at this coin which was actually created as more of a joke than a serious cryptocurrency! Back in late 2013, Billy Markus and Jackson Palmer came up with an idea to create a new peer to peer digital currency that would stand out from popular coins like Bitcoin and would poke fun at the crazy speculation which existed at that time (and still exists today) in cryptocurrency trading.
And so the Dogecoin came in to existence and for the next 6 year its price flirted between $ 0.001 to $ 0.004 with its Market Cap. moving between $1 to $3.5 billion. It wasn't until the end of 2020 and beginning of this year that things started to get interesting, as you can see in the chart below
Because of Dogecoin's origin as a joke it has not been taken very seriously by most of financial institutions and experts, indeed some experts have called Dogecoin a pyramid scheme. Reasons given for this is the fact that top 5 wallets seem to control around 45% of the coin's overall supply and its these big holders who are trying to drive up the price of the coin by mercilessly inciting other investors to buy in
Dogecoin is clearly an extremly speculative and unpredictable play and nobody really knowe's where its heading. Algorithm based forecasting service ''wallet Investor'' predicts that Digecoin will trade around $0.45 by the end of this year, we have also seen couple of investment analysts from notable banks say that a price of $0.80 is achiavable. On the other hand the crypto aggregator ''Coinswitch'' is giving a rather gloomier prediction saying that within 12 months price will fall back to less than $0.05! Another similar prediction comes from managing partner at Key Advisor Group, Eddie Ghabour, who told Yahoo Finance that he sees Dogecoin ceasing to exist as soon as there is a major crypto bubble burst.
What ever your investment intentions are towards Dogecoin, if you do decide to invest only do so with the amount of money you can comfortable afford to lose. Our gut feeling is that Dogecoin hasn't had the final say just yet and that the greedy gambling speculation from certain groups and individuals could yet drive the price further North. Just remember, keep the stakes low!