A doge breakfast?
The popular dogecoin cryptocurrency asset, designed as a joke in 2013, has been closing over the past week after hitting a record high on Monday, leaving few investors laughing.
Dogecoin, in the last check, was trading at 0.06784 cents, below 20% compared to the February 7 high of 0.087159, according to CoinDesk data. This decline meets the most widely used criteria among Wall Street chart watchers and technical analysts for a bear market.
Read: Dogecoin? Many “retail bettors will lose money,” says the cryptography expert
It is unclear where cryptography is headed, it is still up about 50% in the last seven days and has enjoyed a remarkable increase of 1.350% since the beginning of 2021, with a market value of $ 8.7 billion . , from Friday afternoon. This places the dogecoin out of the top ten cryptocurrencies, with Bitcoin BTCUSD,
at the top of the ranking with a market value in excess of $ 880 billion.
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“People move markets massively and play like fools among themselves without understanding the ramifications or their own psychological limitations.”
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Doge’s rally began at the back of a series of bullish hearings, albeit at times cryptic tweets by Tesla Inc. TSLA,
Chief Executive Elon Musk.
Several celebrities, including Calvin Broadus, also known as Snoop Dogg, and Gene Simmons of the rock band Kiss joined Musk – in addition to billionaire investor Mark Cuban – who have been tweeting about investing in dogecoin.
At the popular SatoshiStreetBets chat forum on Reddit, some expressed their hope to increase the value of dogecoins to $ 1.
However, cryptography experts have warned that dogecoin, pronounced as “dōj-coin” and commonly associated with a popular meme with a shiba inu dog, has limited utility compared to other decentralized cryptographic assets, including bitcoin.
Dogecoin co-founder Billy Markus told The Wall Street Journal in an article in early February that he created the asset in 2012 as a “cheerful cryptocurrency,” then known as Bells, to serve as fun. bitcoin version.
In an open letter on Reddit this week, Markus also wrote about cryptocurrency.
“It went from a silly joke to something worthwhile for people very quickly, and a community developed quickly, with a lot of shady people and a lot of new people, quickly installing services and infrastructure around them,” wrote the co-founder.
Nic Carter, venture capitalist for cryptocurrency and blockchain who founded Castle Island Ventures on CNBC, warned earlier this week that average investors could suffer severely from making speculative bets on an asset with no real purpose. He also found it doubtful that Musk would support the virtual asset.
“It’s a little disconcerting to see Elon Musk so enthusiastic,” the Castle Island co-founder said.
Bullish bitcoin investors claim that price gains in bitcoin, cryptocurrency no. 1 of the world, are supported by the limited supply of cryptography inherent in their code. There will only be 21 million bitcoins, and as time goes on, the so-called extraction of bitcoins or solving complex computational problems that are rewarded by bitcoin become more difficult. Most likely, the final bitcoin cache will not be extracted until around 2140.
The supply of dogecoin, on the other hand, has no built-in limit, and the number of dogecoins that can be extracted at any given time varies from one to hundreds of thousands.
However, interest in dogecoins underscores the appetite for alternative assets in an environment where there are 0% interest rates as governments around the world try to mitigate the economic damage of the COVID-19 pandemic.
Charles Hayter, CEO of London-based research site CryptoCompare, told MarketWatch earlier this week that investors should be wary of investments like dogecoin.
“People move the markets en masse and play more and more deceived without understanding the ramifications or their own psychological limitations.