Over the last year cryptocurrencies have been on the rise in popularity. More and more people are looking for a more stable currency to put their savings into. The dogecoin was initially created in December of 2013 as a joke. It was based after the popular doge meme around this time. The creators of the dogecoin made it as a way to make fun of the attraction of bitcoin. Yet just 8 years later it would be one of the most famous and profitable coins on the market.
Throughout the years the dogecoin has stayed around the same worthless price, but that changed when Elon Musk started tweeting about it and caused little frenzies. These would not last though as many people simply bought along with the crowd and died down a few days later. Yet this week the billionaire tweeted a simple picture with the caption “Doge barking at the moon”. This alone was enough to make people go crazy and radiate hype around the coin. So much in fact that it shot up over 300% in value over the coming days!
The hype around the dogecoin has grown so much over the last years that it has increased over 2,600% in just one year! Meaning if you had invested around $1,200USD just last year you would be met with a solid $201,000USD today! This is extreme of course but is anyone actually making this much profit? Well it is reported that one unknown individual owns around 28% of all dogecoin. Equaling up to over 5.6 billion USD! Could this be Elon himself, hyping up a coin to make him even richer? Possibly, but we will just have to wait and find out…
Today dogecoin is still being hyped up and pumped trying to get it to that infamous $1 mark. Unfortunately for the dogecoin owners the coin is simply not profitable in the long term as it has a 10,000 coin a minute inflation rate. Therefore causing the coin to lose value over time. This inflation is 100% intentional as the creators do not want it becoming a real investment. Yet with a market cap in the top 5 and hype from many investors it might just break that barrier for a while.