A girls’ breakfast?
The popular dogecoin crypto asset, designed as a joke in 2013, collapsed last week after reaching a record value on Monday, and few investors laughed.
Dogecoin traded at 0.06784 cents on the last check, 20% lower than its February 7 record high of 0.087159, according to data from CoinDesk. This decline meets commonly used criteria among Wall Street map viewers and technical analysts for a bear market.
Read: Dogecoin? Many ‘retailers will lose money’, says crypto-expert
It is not clear where the crypto is heading, it is still about 50% higher over the past seven days and has seen a noticeable increase of 1,350% since the beginning of 2021, with a market value of $ 8.7 billion. , from Friday afternoon. It ranks dogecoin just outside the top 10 cryptocurrencies, with bitcoin BTCUSD,
at the top of the list with a market value of more than $ 880 billion.
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“People move en masse from markets and play foolishly with each other without understanding the consequences or their own psychological limitations.”
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Doge’s rally started with a series of bullish, although sometimes cryptic tweets from Tesla Inc. TSLA,
CEO Elon Musk.
A number of celebrities, including Calvin Broadus, also known as Snoop Dogg, and Gene Simmons of rock band Kiss have joined Musk – as well as billionaire investor Mark Cuban – tweeting about investing in dogecoin.
Some on Reddit’s popular SatoshiStreetBets chat forum expressed the hope of increasing the value of the dog coin to $ 1.
However, crypto experts have warned that dogecoin, pronounced as “dōj-coin” and usually associated with a popular meme with a shiba inu dog, has limited utility compared to other decentralized cryptographic assets, including bitcoin.
Dogecoin co-founder Billy Markus said in an article to The Wall Street Journal in early February that he created the asset in 2012 as a “light-hearted cryptocurrency,” then known as has as Bells, to serve as the fun version of bitcoin.
In an open letter on Reddit this week, Markus also wrote about the cryptocurrency.
“It went very quickly from a silly joke to something that was worth something to people, and a community was developing rapidly, with a lot of shady people and a lot of new people, who quickly set up services and infrastructure around it,” wrote the co-founder.
Nic Carter, a crypto- and blockchain venture capitalist who founded Castle Island Ventures, warned on CNBC earlier this week that average investors could be badly hurt by speculative betting on an asset with no real purpose. He also finds it strange that Musk would support the virtual asset.
“It’s a little disturbing to see Elon Musk so enthusiastic about it,” the Castle Island co-founder said.
Bullish bitcoin investors argue that price increases in bitcoin, the world’s number 1 cryptocurrency, are supported by the limited supply of crypto inherent in the code. Only 21 million bitcoin will ever exist, and the so-called mining of bitcoin, or the solution to complex computer problems rewarded by bitcoin, becomes more difficult over time. The final memory of bitcoins will probably only be mined around 2140.
The offer of dogecoin, on the other hand, has no built-in limit, with the number of dogecoin that can be mined at any one time, from 1 to hundreds of thousands.
Nevertheless, interest in dog coins underscores the appetite for alternative assets in an environment where 0% interest rates prevail, as governments around the world seek to alleviate the economic damage of the COVID-19 pandemic.
Charles Hayter, chief executive of London research website CryptoCompare, told MarketWatch earlier this week that investors should be wary of such investments as dogecoin.
‘People move en masse from markets and play foolishly with each other without understanding the consequences or their own psychological limitations.