Is Dogecoin a Good Investment: DOGECOIN (DOGE) recently hit a noticeable quality after Elon Musk’s support and contribution to the Reddit r / WallStreetBets rally.
Either way, regardless of the publicity, many potential backers are unsure whether dogecoin is really worth buying.
Is Dogecoin a Good Investment
Shiba Inu’s dog-inspired cryptocurrency rose almost instantly from under $ 0.07 (£ 0.097) to over $ 0.08 (£ 0.11) after the tweet.
Ellon Musk tweeted: “He bought some dogecoin for lil X, so he could be a toddler.
The term“ HODL ”is a common acronym among cryptocurrency traders when announcing the intention not to sell their holdings.
But despite the volatile cryptocurrency recently it has gone down Some of its gains are slightly higher, but DOGE has remained uncharacteristically flat for the past few days.
CoinDesk.com data indicates that dogecoin is trading at $ 0.068674 (£ 0.049) at 3pm on Saturday 13 February.
Dogecoin at its peak achieved a market cap of $ 10 billion (£ 7.2 billion), about as much as Dropbox.
But despite the arrival of dogecoin into popular culture, experts warn against investing in cryptocurrencies like DOGE without taking due care.
Jason Cozens, founder and CEO of London-based fintech company Glint, suggests that Musk’s endorsement could set a bad precedent.
He told Express.co.uk: “Whilst the rise in the value of dogecoin might be tempting for private investors, as is the fact that it’s promoted by one of the richest individuals on the planet, this growth is likely to be unsustainable over the long-term.”
Is Dogecoin a Good Investment
But the fintech expert added that cryptocurrencies are increasingly viable assets, particularly during economically turbulent times.
He said: ”However, the factors that are driving consumers towards cryptocurrencies will remain in place – people have been let down by the banking system and are desperate for an alternative.”
The development coincides with Dogecoin founder Billy Markus, who reveals what he’s done since selling his stake in 2015.
Cryptocurrency trader Scott Melker is another expert who is careful when gambling with his money cut.
He told Express: “I love DOGE. That said, it started as a meme and very much still is one.
Fun and games aside, there is a wallet that holds 27 percent of the supply, valued at around $1.2B.”
The development coincides with dogecoin founder Billy Markus revealing what he’s done since selling his share in 2015.
Markus took to the Dogecoin subreddit forum on Monday to clarify his lack of involvement in dogecoin.