Dogecoin (CCC:DOGE-USD) started out as a hoax, has no use case, and currently has a market cap of nearly $ 7 billion. It will continue to be a joke until proven otherwise.
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However, in the wild times that may or may not become the new normal, cryptocurrency has value. The fact is, people make real money by trading it.
It should be noted that there is currently no reason to view Dogecoin as anything other than a bit of fun. The opinions of the founders of the Altmünze about what became of it speak volumes.
Let’s start there.
The march towards 1 dollar
If the recent headlines are to be believed, Dogecoin will continue to move higher and hit $ 1. In fact, Dallas Mavericks owner and business icon Mark Cuban is optimistic, if less than 100% convinced, that this threshold will be reached.
In early March, he announced that his NBA team would be accepting Dogecoin as payment for tickets and goods. While at first glance this might seem to strengthen the case for buying the altcoin, it should be taken with a grain of salt.
When asked about the decision, the Cuban replied: “We decided to do it because in business you sometimes have to do things that are fun, get involved and hopefully generate a lot of PR. So we’re going to take Dogecoin today, tomorrow, and possibly forever more. “
Billy Markus, the co-founder of the coin, had this to say about what the reality of $ 1 Dogecoin means.
“That would make the market capitalization larger than the actual companies that offer services for millions,” said Markus. “Did Dogecoin deserve that? I can’t understand that, let alone answer it. “
Can you make money with Dogecoin? For sure. The latest data from Coindesk shows a value of $ 106.90 million has been processed in the last 24 hours. Play this game if you want i have no judgments against it. At the same time, note Markus’ argument that Dogecoin doesn’t actually produce anything.
Market Capitalization Notes
Currently, Dogecoin’s market capitalization is more than $ 6.86 billion and is trading at around 6 cents. Projected to $ 1, Dogecoin brings a capitalization of $ 129.43 billion. This seems unlikely in view of Markus’ comments.
The point here is that it seems a little fancy that its value has already risen 20x since November. The markets keep causing surprises, so maybe $ 1 is possible. In my opinion, it is clearly going to take a use case to achieve this.
What I can confidently say, however, is that Dogecoin certainly can’t reach $ 10. At that price, Dogecoin would have a market cap of 1.2943 trillion. That would make it about $ 800 million more valuable than Tesla (NASDAQ:TSLA) and around 800 million US dollars Apple (NASDAQ:AAPL)
The Dogecoin mining knows no borders. This is in stark contrast to Bitcoin (CCC:BTC-USD). Basically there is no inherent scarcity of the coin. The fact is, outside of limited trading, there isn’t really much you can do with it Reddit and Pull out.
Right now, frankly, the reason for buying Dogecoin looks like you’re simply trying to pass it on to someone for a profit. If you want to play this game and believe you can do it successfully, be my guest for as long as you remember that it is and will remain a game until an exchange ecosystem develops.
At the time of this writing, Alex Sirois held positions (neither directly nor indirectly) in the securities identified in this article.