Dogecoin to the Moon… and Back. Signs of a Crypto Bubble?

I’ve been writing a lot about cryptocurrency lately because I feel like that is all you hear about in investing news. But Dogecoin showed everyone why when the price of 1 Dogecoin (DOGE) skyrocketed 203% in just 24 hours. Within the past week, Dogecoin has had an insane 452% increase. Its value reached its peak early this morning, and it has been on a downhill slide since then. Besides making people kick themselves for not investing in this earlier, this spike has also raised questions and worries about a potential bubble effect in the crypto market.

Dogecoin was literally created as a joke, and it now has a market value of over $40 billion. This spike has added over $20 billion to Dogecoin’s market value. The fact that Dogecoin doubled in value has people asking why this happened? There are multiple factors that played into this rapid spike in value, but the popularity effect might be one of the biggest reasons.

Cryptocurrency has been all the rage over the past couple weeks with Bitcoin hitting its record of more than $64,000 per coin and Ethereum reaching it new record when it topped $2,500. Part of this crypto craze was Coinbase releasing their DPO on Wednesday. Clearly, there has been a lot of excitement around cryptocurrencies building over the past week. All of this combined with Dogecoin’s biggest supporter, Elon Musk, sending out the tweet pictured below where he said, “Doge Barking at the Moon”, sparked people to go crazy with buying Dogecoin.

Tweet by Elon Musk on Twitter

I unfortunately was jumping on the Dogecoin bandwagon too late and the fact that it had such a dramatic spike which is being immediately followed by a slow crash makes me very wary about buying in at its peak price. In my previous blog post, “How to Buy Bitcoin and Use Coinbase“, I talked about buying Bitcoin (which has been hovering around its peak price) which I view as a more long term investment because it has so much big institutional support, with strong potential to become an actual widely used currency. Dogecoin on the other hand, I view as more of a quick trading asset.

What are your thoughts on Dogecoin? Are you buying some and hoping it keeps shooting to the moon? Leave me a comment with your thoughts on Dogecoin, Bitcoin, and cryptocurrency overall. Is it all a hype bubble that will burst soon?

Photo by Clay Banks on Unsplash

Author: vancealm

Working as a manager within two of the largest retail companies for the past 7 years has given me insight into consumer trends and essentially what people are buying on a normal basis. Why is that useful? Because it gives me a better understanding of the established and growing brands and companies that could potentially work to make YOU money. My name is Vance Alm and I am currently working on earning my MBA from the University of Nevada, Reno. I want to talk, teach, and find out more about investing in the stock market. Recently, there has been a lot of news around the stock market, hedge funds, and normal retail investors which has reignited the nation’s curiosity about investing their money. A lot of people want to be involved with the excitement of potentially making money by investing in the stock market, but they don’t know how or even where to begin. I want to explore the world of investment banking with you and talk about everything involved, from researching different companies to invest in, to the different online platforms or financial service companies you can use and everything in between. I am not a wealthy hedge fund manager and I am not an expert in the field, but I am passionate about the idea of having your money work for you. I am always learning more on the topic and I want to open the conversation on how to start investing and what companies to potentially invest in.

3 thoughts on “Dogecoin to the Moon… and Back. Signs of a Crypto Bubble?”

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