A doge breakfast?
The popular cryptocurrency asset dogecoin, conceived as a joke in 2013, gave way in the last week after reaching a record high on Monday, leaving few investors to laugh.
Dogecoin, at the last check, traded at 0.06784 cents, down more than 20% from the maximum value recorded on February 7 of 0.087159, according to CoinDesk data. That decline meets the criteria commonly used among Wall Street chart observers and technical analysts for a bear market.
Read: Dogecoin? A lot of “retail bettors will lose money,” says the cryptography expert
It is not clear what the crypto is heading for here, it is still growing by about 50% in the last seven days and has enjoyed an impressive gain of 1,350% since the beginning of 2021, with a market value of 8.7 billions of dollars. , starting Friday afternoon. This ranks dogecoin just outside the top 10 cryptocurrencies, with bitcoin BTCUSD,
in the top of the ranking with a market value exceeding 880 billion dollars.
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“People move en masse in the markets and play worse without understanding the ramifications or their own psychological limitations.”
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Doge’s rally began behind a series of bullish, though sometimes cryptic tweets of Tesla Inc. TSLA,
Executive Director Elon Musk.
A number of celebrities, including Calvin Broadus, also known as Snoop Dogg, and Gene Simmons of the rock band Kiss joined Musk – as well as billionaire investor Mark Cuban – wrote on Twitter about investing in dogecoin.
On the popular SatoshiStreetBets chat forum on Reddit, some expressed hope to increase the value of dogecoins to $ 1.
However, crypto experts have warned that dogecoin, pronounced “dōj-coin” and commonly associated with a popular meme featuring a shiba inu dog, has limited utility compared to other decentralized cryptographic assets, including bitcoin.
Dogecoin co-founder Billy Markus told The Wall Street Journal in an article in early February that he created the asset in 2012 as a “light cryptocurrency,” then known as Bells, to serve as the fun version of bitcoin.
In an open letter on Reddit this week, Markus also wrote about cryptocurrency.
“It went from a silly joke to something that deserves something very fast for people, and a community is growing fast, with a lot of shady people and a lot of new people, quickly putting services and infrastructure around it,” he wrote. the co-founder.
Nic Carter, a crypto-capitalist and blockchain venture capitalist who founded Castle Island Ventures on CNBC earlier this week, warned that average investors could be seriously hurt by making speculative bets on a non-profit asset. He also found it questionable that Musk would support the virtual asset.
“It’s kind of disconcerting to see Elon Musk so excited about it,” said Castle Island co-founder.
Bullish bitcoin investors claim that the rise in bitcoin prices, cryptocurrency no. 1 of the world, is supported by the limited supply of crypto that is inherent in its code. Only 21 million bitcoins will ever exist and so-called bitcoin extraction or solving complex computing problems that are rewarded by bitcoin become heavier as time goes on. The final cache of bitcoins will probably not be exploited until around 2140.
The supply of dogecoin, on the other hand, has no built-in limit, the number of dogecoins that can be mined at any one time ranging from one to hundreds of thousands.
However, interest in dogecoins underscores the appetite for alternative assets in an environment where 0% interest rates are predominant as governments around the world try to mitigate the economic damage caused by the COVID-19 pandemic.
Charles Hayter, CEO of London-based research site CryptoCompare, told MarketWatch earlier this week that investors need to pay attention to investments such as dogecoins.
“People move en masse in the markets and play worse with others without understanding the ramifications or their own psychological limitations.