Is there really a future for DogeCoin reaching the number 3 or perhaps number 2 spot of cryptos by market value?
This article comes to us from CNBC discussing the volatility of DogeCoin in after Elon Musks’ SNL performance as well as his tweet about Tesla dropping support for Bitcoin over environmental concerns with mining.
DogeCoin currently has a roughly 68 billion dollar market cap with it ranking #4 out of all cryptos. Some notable companies with a similar market cap are Bayer, Addias, Coinbase (recently IPO’d), VMware, and Heineken.
The debate continues on about DogeCoin value as Elon’s SNL performance sent the coin’s valuable plummeting for days only to recover. Many continue to speculate that the DogeCoin’s value is merely a meme or joke pumped up artifically by Elon’s tweets. Recently Elon tweeted that the electrica car maker Tesla, of which he is the CEO, would no longer accept bitcoin as payment over environmental concerns linked to the coin’s mining.
Many speculate that Tesla will soon accept DogeCoin rather than Bitcoin or Ethereum as a form of payment. This news, along with the coin’s rise in popularity are driving the price as well as companies like Coinbase to begin allowing buying and selling of the coin on their platform. This is providing yet another hype cycle for DogeCoin and could trigger another round of panic buying followed by another dip.
Could DogeCoin rise above a 68B market cap? Pushing closer to 100B market cap would see it joining the ranks of China Mobile, Target, and Lockheed Martin. Although very common, the real question is: Is it even a fair comparison to think about a crypto currency in terms of market cap comparisons to other companies? Bitcoin and Ethereum has much more limited supply and much larger market caps. Could DogeCoin hop to reach that level of market cap but with an ever increasing coin supply? This leads many to question DogeCoin’s movement possibilities above $1.
For today’s crypto investor diversification continues to be the winning play. The riskier investor might have a chance to get in early on smaller coins and see some gains however you’re also likely to see your initial investment completely wiped out. For those hoping for a quick buck with DogeCoin there is of course the potential of seeing #DogeCoinTo1Dollar but remember, you may be at the mercy of billionaires tweeting in your favor. Regardless, buying lows and diversifying across investment options are likely to provide returns in the long run.
References links
Market capitalization of companies
https://companiesmarketcap.com/page/2/
Market capitalization of cryptocurrencies
https://coinmarketcap.com/
Elon’s Bitcoin tweet
https://twitter.com/elonmusk/status/1392602041025843203
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