Is Dogecoin a good investment?

Dogecoin was launched in December 2013. It is a meme-based cryptocurrency that was created by two software engineers, Billy Markus and Jackson palmer. Dogecoin was created as a joke. Dogecoin has exceeded a market cap of $75 billion in May 2021. Now, this crypto-currency has fallen significantly, but still, dogecoin, which is trading below $0.20 per token. is considered a good crypto-currency to buy in 2022. The investor Glauber Conressoto, whose doge belonging has exceeded $1 million, is not worried about the downfall of dogecoin. This investor is not a financial expert, so he is still hopeful for crypto-currency dogecoin. yet having so many investors, dogecoin has still hit the bottom. The financial experts are in doubt about the present situation and pricing of dogecoin, the volatility of crypto-currencies is a reason behind the uncertainty of experts, which is forcing them to say that crypto is risky and not a good investment. Even financial experts say that crypto-currencies are a speculative investment, because of insufficient technologies and lack of development. Investors should take precautions and preventive measures before investing in dogecoin. the investors should invest only in the crypto-currency which they could afford even if they lose it. Another opinion about dogecoin is that “dogecoin is certainly not a good investment” which shows the opinions of experts that have concluded on the safer sides and investment risks of dogecoin.

Crypto-currencies have price volatility, dogecoin also has pricing volatility issues, but the volatility is beneficial for dogecoin. this volatility allows those traders to work in day crypto-currency marketing and enter the crypto market daily. They can get the benefit from this volatility and extreme up and down of dogecoin’s price value. Another positive opinion about dogecoin is that it was created as a joke, but it became the 10th largest crypto-currency in the world in 2021. In comparison to other crypto-currencies, dogecoin uses less energy for transactions. Bitcoin uses 707.6 kWh energy for transactions. Ethereum uses 62.52 kWh for transactions. Mark Cuban has stated that dogecoin has “determined inflation”. Elon musk is permanently using his Twitter account as a platform for expressing his views about dogecoin. His first tweet about dogecoin appeared on Twitter on 20 Dec 2020. He tweeted only a single word “doge”. Soon after this, the value of dogecoin rose 20%. But in May 2021, after Elon musk said that tesla will accept the currency as payment, the dogecoin spiked 20%.

Conclusion:

Although further prices of dogecoin are not determined. In this situation, the investors are confused about investing in the crypto market. Experienced and wise investors should know where they should invest their money. Coming back to dogecoin, no one is sure about the pricing of dogecoin in the future. Because wise investors know that we should not invest in “jokes”, rather we should invest in a firm and stable priced cryptocurrency, so that chances of facing a loss in your investment becomes negligible. Analysts have preferred bitcoin over dogecoin because it offers a good value and for most of the time, its price has been stable in comparison to that of dogecoin. which forces investors to think that dogecoin is not a good investment.