Dogecoin is now worth $49.8 billion, with each coin worth about $0.56 at the time of writing.This is the highest value for coinage, originally launched by Billy Markus and Jackson Palmer as software engineers, to highlight the absurd number of so-called “alt-coins” that spring from all over the world.
Yahoo Finance, however, reports that the coin is worth more than Ford (45.2 billion dollars) and Twitter (44.1 billion dollars). For the big names in Ethereum cryptocurrencies worth $381 billion and Bitcoin worth $1.1 trillion, it’s still a baby. The value of Dogecoin is now the highest it ever was.
Ogecoin’s new boost probably comes from Elon Musk, at least in part. The CEO of Tesla had a soft currency for many years and Doges was also very excited during his time hyping Gamestop stock a few months ago. Musk is due to appear as guest host on Saturday night on May 8th and asked Twitter for ideas. On April 28, he tweeted “The Dogefather SNL May 8.”
The other push for Dogecoin and Gamestop was by Reddit WallStreetBets users. The coin gathered their attention when they were trying to send Gamestop “to the moon” in the group’s speech. It was quieter about Dogecoin recently, rather than helping Nokia and Rocket companies stock up.
While Dogecoin may appear to be an attractive option, there is something to be cautioned about (this article is not financial advice and should not be used for investment purposes). First, a bubble like that can collapse easily, leaving you with only a fraction of the money. There are currently very few wallets with a very large percentage of Dogecoin’s total on the market.
This suggests that one or more people sit on huge collections of coins that can be dumped when the price reaches a certain threshold. This would dramatically reduce the value of the coin if they were sold in large volumes. If this happens, the current value of $0.56 could drop substantially, perhaps even back to the few cents the currency is worth for most of its existence.
It should also be noted that Dogecoin is inflationary and was begun as a joke. In contrast to Bitcoin, there is no boundary. 10,000 Doges are produced per minute, making it difficult to maintain value.