It started as an internet meme but has since become a cryptocurrency for the stars; the rise of Dogecoin has been a perfect illustration of influencer culture’s power.
Created in 2013 as a joke, Dogecoin has been championed by Tesla and SpaceX leader Elon Musk, Snoop Dogg, and Kiss bassist Gene Simmons. Twitter’s CFO, Neil Segal, spoke recently on the discussions to add crypto to its balance sheet, ”we’ve done a lot of the upfront thinking to consider how we might pay employees should they ask to be paid in Bitcoin, how we might pay a vendor if they asked to be paid in BTC,” he explained to Andrew Ross Sorkin on CNBC.
Even with few real-life uses, celebrity endorsements have the power to elevate cryptocurrency in the markets dramatically and to nudge it more and more into everyday use.
Marketed as ‘the crypto for the people,’ Dogecoin has no built-in limit, making it an inexpensive currency to invest in. Compared to the world’s number one crypto, Bitcoin, of which only 21 million of the currency have been mined, increasing its value on the market.
But Is It Worth the Investment?
Experts have warned that when it comes to Dogecoin, caution should be applied. However, naturally, the rate of return with new crypto piques interest. If you had invested $100 five years ago, it would be worth over $16,000 today – it’s fluctuations like these that get investors buying in and maybe risking more than necessary to be in on the trend. As with all markets, that’s the risk.
Elon Musk has been very beneficial for Dogecoin and has some early investors laughing all the way to the bank. After Musk invested $1.5bn in Dogecoin (and removed #Bitcoin from his Twitter bio), the price soared in minutes, perhaps another sign of the power of the Reddit generation to defy Wall Street.
With a brashness reminiscent of Musk’s Twitter memes, thousands of amateur investors bought falling GameStop stock en masse back in January, increasing its value by 1,700%.
The crypto economy will inevitably continue to see big names start to invest, which will, in turn, affect the trading landscape, resulting in CFD and crypto trading as an effective alternative. With Blockchain companies on the cusp of launching new services likely to be supported by several Fortune 500 companies, there’s no stopping the momentum of both Bitcoin and Dogecoin. This presents unique opportunities to invest in CFD trading as a versatile means to access a range of markets (including shares, commodities, currency, interest rates, and bonds).
As far-fetched as crypto can often feel, established fund managers will continue to keep an eye on this market. As we follow the recovery trends of post-COVID markets, it’s sensible to look across speculative investments like Dogecoin, appreciating in many cases their impressive lasting power and this inevitable effect on markets.
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