Dogecoin Documentary: The REAL Truth About Dogecoin

dogecoin a cryptocurrency built around a meme created back in 2013 dogecoin started off as a bit of a joke to satirize the hundreds of altcoins that were being created off the back of bitcoin's popularity and for a long while the dogecoin price generally remained well below one cent per coin until 2021 where a sharp price increase of over a thousand percent saw dogecoin reach a new all-time high and talk began to build of dogecoin hitting one dollar per coin whilst that may not sound like a lot it would mean if you got in at around one cent per coin you'd 100x your investment it's enough to make anyone tempted to throw some money in but should you today we're looking at what's actually going on with dogecoin whether it can hit one dollar per coin whether you should invest in dogecoin yourself what do you want [Music] so if you're looking for an explanation of what started dogecoin's insanely rapid price growth it would be fair to say the catalyst for it all was elon musk the world's current richest man has tweeted a significant amount about dogecoin so much so that the tweets are being investigated by his old friends the sec but elon has called dogecoin the people's cryptocurrency and a single tweet of the word doge from him or even a doge related meme can send the prize skyrocketing he's even said it's his favorite cryptocurrency but the crucial thing to remember here is that when he was asked why he likes dogecoin so much his answer was i love dogs and memes nothing about the cryptocurrency's potential or value or actual application just that it's a funny meme some people also chose to look the other way when elon raised concerns of dogecoin's concentration where a few big whales earn a huge chunk of the total amount in circulation for example the world's largest holder of dogecoin and 28 of it a position now worth several billion dollars so whilst elon clearly does like dogecoin his actions reveal things more clearly elon's company tesla recently invested 1.5 billion dollars into cryptocurrency and they chose bitcoin not dogecoin so unlike bitcoin's price spike which correlated with positive news for the currency about it being accepted by such a major company dogecoin's price increase was purely down to hype nothing functionally changed there was no promising news about it being more widely accepted no technological improvements it's just people were talking about it more and so it got more and more momentum now can you still make money investing because of hype of course if you invest right now whilst today it's at around 20 cents per coin and then some big celebrities start talking about dogecoin it could easily shoot up to 40 cents per coin and then you've doubled whatever money you put in but that's not really investing that's more like gambling which is totally fine if you know what you're getting yourself in for you can afford to lose it and you know the risks the problem is the way people are talking about it when i see a lot of people mentioning dogecoin it's all about a team effort from the internet to push the price up there's this mentality of we're all in this together team doge let's do this doge to the moon but of course the reality is that the price is based on supply and demand for you to be able to buy it at the current price there has to be someone trying to sell it at that price and so dogecoin has a lot of people looking to pump it up so they can dump it for a big profit those who get in early enough make a lot of money but leaving those who bought late with a big fat loss now a lot of people also seem to be trying to compare dogecoin with what happened with gamestop where a lot of reddit users all bought the stock at the same time and the price shot up but there's a crucial difference the momentum behind gamestop was initially because large hedge funds had overshorted the stock which basically meant that if the price was driven high enough these hedge funds would have to start buying the stock back at a ridiculously high price which would in turn squeeze the price even higher dogecoin doesn't have that nobody has to buy it the only way you can sell dogecoins for a higher price than you paid is if more people have bought into it to drive the price up further and so sometimes the same people telling you to hold the line or buy doge could be doing so so they can dump their own coins of course with anything on the internet don't just assume everyone's intentions are good there will be winners and losers from dogecoin so by all means take a punt on it if you think it can become a widely used cryptocurrency or you just want to try and time it right so you can get out after the next pump happens just please don't put in more money than you can afford to lose as it could easily crash down at any moment now to classify dogecoin as just a meme or a pump and dump ponzi scheme would be unfair because it's a very real cryptocurrency that actually has fast transaction speeds very low commission rates and an active community of fans behind it not to mention that it has huge appeal to smaller investors because you can buy whole coins so cheaply and of course while some people may have thought its name and branding would have meant people didn't take it seriously it's actually worked in its favor and helped it become one of the most recognizable and talked about cryptocurrencies there is people love the humor of it that's why elon was so vocal about it in the first place you can't overlook the power of memes it's not surprising a lot of people are drawn to dogecoin it's fun but not just that dogecoin does have some real world use cases as a currency as well like it's being used for tipping people online and so it doesn't seem that unrealistic to think more websites may start accepting dogecoin even if just as a marketing ploy to get in on the meme and if they did dogecoin could become more widely used again further creating demand and driving up the price even more and as if that wasn't enough the doge queen foundation has also helped raise money for kenya's water crisis and sending the jamaican bobsled team to the winter olympics it's easy to see why there's so much love and hype around dogecoin however let's be clear dogecoin doesn't offer anything revolutionary compared to any other cryptocurrency its success is very much down to its mean branding rather than its fundamentals or technology so bearing all of this in mind could dogecoin hit one dollar this year like some people are predicting the short answer is it could but it's incredibly unlikely the amount of money that would need to be poured into doge for that to happen just doesn't seem realistic it would need to reach a market cap close to that of ethereum or even bitcoin and those cryptocurrencies have so many other uses that it's very unlikely hype alone is going to carry doge to those kind of heights another factor to consider is a very key difference between dogecoin and bitcoin which is that bitcoin has a limited supply there will only ever be 21 million coins in existence so the demand may grow but the supply will stay the same causing the price to increase but dogecoin on the other hand has no such cap people can keep mining it forever and so more will be produced every day and every year which is fine if you're viewing it as a currency that you're actually gonna use after all the same thing happens with fiat cash wheel use all the time more gets printed very regularly but from an investment point of view that lack of scarcity isn't a good thing because scarcity increases value so if hitting one dollar seems unlikely what price target is likely well we know how volatile cryptocurrency can be especially something like dogecoin so it's almost inevitable there are going to be plenty more ups and downs the good news is that these pumps happen in cycles so if you do buy dogecoin and the price suddenly drops you may be best just not selling because at some point the price will likely go back up when something big triggers more hype around dogecoin for example one factor that may well cause a dogecoin price spike is that right now dot coin is harder to buy than something like bitcoin because dogecoin isn't listed on all of the most popular crypto exchanges such as coinbase but this may change if it does get added to some of these other bigger exchange platforms that lots of people use it's pretty likely the price will increase at least temporarily because if it's easier for people to buy more more people are gonna buy it and of course that will then cause more news headlines about dogecoin which will create more buzz and demand around it and cause the price to go up even more the exact same thing happened with bitcoin cash and several other cryptocurrencies when they got added to new exchanges quick side note if you do want to buy dogecoin right now there are exchanges like finance kraken parabu bcx and vcc exchange that allow you to do so now another realistic factor that could cause the dogecoin price to rise is if elon goes on another doge twitter spree or indeed any other high-profile names start talking about it that's again gonna cause more demand and see a sudden price spike not only that dogecoin and all altcoins typically do well when bitcoin does well so good news for bitcoin can often raise the price of a lot of other cryptocurrencies including dogecoin so if you believe a big bitcoin spike is coming those coin may benefit from that too the problem is nobody can really know when or how much with enough hype around it it seems plausible dogecoin could easily hit 30 cents or maybe even 40 cents and above but anyone trying to convince you dogecoin is definitely going to hit any particular price at a certain time probably has vested interests for full disclosure i have zero dogecoin right now i'd love to see it hit one dollar or above i think that'd be hilarious and make a lot of new millionaires but there's really no indication that's likely anytime soon other than blind belief and some vocal people pushing it on social media trying to get new people to buy so the price goes up but the good news is that even if it just went up to 40 cents per coin which i think is definitely very possible that would still be a 100 increase of the price right now at the time of this video so even if it doesn't reach the dizzy heights some people are suggesting you absolutely can make money with dogecoin which may leave you wondering why has this video felt a little negative towards dogecoin and the answer is simply because i'm worried that most videos about dogecoin are so focused on how high the price could go they don't really acknowledge how low the price could go and how quickly it could fall back to one cent or lower and people losing all of their money that they put in of course i'm not a financial advisor you can weigh up the risks and potential yourself but my personal view is that putting some but not all of your money into cryptocurrency makes a lot of sense especially right now with governments printing money at record rates it's a great way to diversify your portfolio and i do believe cryptocurrency is going to play an important role in our future but putting money into dogecoin specifically should be viewed as a bit of fun more of a gamble than a place to heavily invest the price will very likely continue to fluctuate quite wildly both up and down based mainly on hype because at this very moment it seems unlikely it's going to become a really widely used currency people's interest in doge right now is mainly because of price speculation not because of its practical usage as a cryptocurrency but that could change it's all speculation and so if you are still on the doge hype train yourself i'll leave you with something a little more positive on a recent clubhouse interview elon musk was actually asked about dogecoin's potential as a usable cryptocurrency and whilst he initially pointed out doge was made as a joke to make fun of cryptocurrencies he did also add that fate loves irony and what would be more ironic than dogecoin actually becoming the future currency of earth if nothing else that's a funny image of your grandma logging onto binance to buy some dogecoin but let me know in the comments your thoughts on all this is it just a pump and dump or do you see a bigger future for dogecoin oh and also watch out because on any crypto video there tends to be some blatant scammers in the comments trying to get you to message some crypto advisor or some other rubbish but anyway now let's move on to some ways of making money that are less speculative check out these videos here which i think you're gonna really like if you're looking to make money and before you go please feel free to like and subscribe for more videos like this coming very soon i'll see you next time cheers

You May Also Like