In the 2013 Scorsese movie; “The Wolf of Wall Street”, the lead character; Jordan Belfort lost his job as a Wall Street stockbroker in the aftermath of Black Monday; the largest one day stock market drop in history. Short of options, he went to work at a disreputable brokerage firm.
There, he made a discovery; he could make a lot of money dealing penny stocks because they had a much higher commission than the blue-chip stocks he used to deal with as a Wall Street broker. He only needed to use his considerable sales expertise to persuade people to buy these stocks, and he'd be a wealthy man.
Doge's appeal is comparable to that of penny stocks. While there are older, more valuable, and more widely accepted crypto assets on the market, this cryptocurrency is one of the most volatile, and as such, savvy traders only need to hold them for short periods of time to profit from the volatility of Dogecoin.
This has allowed the coin's value to rise, and with a market cap of more than $29 billion, there is hope that the value of Doge will continue to rise and eventually cross the $1 threshold.
Brief history of Dogecoin
On November 27, 2013, Billy Marcus contacted another software engineer, Jackson Palmer, to discuss making a joke the latter had made earlier, "investing in Dogecoin- pretty sure it's the next big thing," a reality. The new coin went live a week later.
Many people were taken aback when the value of Dogecoin skyrocketed by 300 percent just a month after its launch. This sudden rise was all the more impressive given that Bitcoin and many other altcoins were losing value at the time after the Chinese government prohibited their banks from investing in Bitcoin.
Following that, the value continued to rise, buoyed by the attention of social media users and Redditors, as well as celebrities such as Snoop Dogg, Mark Cuban, and Dogecoin's unofficial patron, Elon Musk.
How it became popular
Meme culture is extremely popular, so this new coin, based on a joke about a popular meme, quickly gained a devoted following. This community began trading Doge and using it to tip others in their social circles, and it quickly became a massive social media trend, capturing the attention of millions around the world and becoming mainstream.
Although the value of Dogecoin has risen, its most valuable asset is the community of devoted supporters who remain dedicated to "raising the value of Doge to the moon." To them, Dogecoin exists as an icon around which they can rally and mock the establishment. (In this case, traditional money, Bitcoin, and other well-known altcoins)
As previously stated, the volatility of this coin makes it very popular in the crypto community because savvy investors can profit from the regular price changes by employing the day-trading strategy.
Links to Elon Musk
Elon Musk is one of the most prominent public figures to be interested in Doge. While many have criticized Tesla Motors CEO Elon Musk's posts about Doge as borderline market manipulation, he has remained on the right side of the law due to the differences between crypto and traditional stock market laws.
The South African billionaire wields enormous power over Doge's value and has used it on several occasions, posting about the coin on social media and in interviews. He even mentioned the cryptocurrency asset on Saturday Night Live, calling it "a hustle" at one point, causing the value to drop for a while.
However, Dogecoin has not had an easy ride, as there have been some setbacks along the way.
"I have a lot of faith in the Dogecoin core development team to keep the software stable and secure, but I think it says a lot about the state of the cryptocurrency space in general that a currency with a dog on it, which hasn't released a software update in over 2 years, has a $1B+ market cap," one of the co-founders said, questioning how a joke coin came to be worth so much.
Furthermore, top crypto analysts have labeled Doge as a "elaborate pump and dump scheme," a trait that, if true, it would share with the penny stocks preferred by the infamous Wolf of Wall Street.
Long and short-term predictions
Because of the volatility that many traders prefer, any predictions for a short-term Doge revival/loss are very likely to be drawn in the sand. Experts predict that by the end of the year, the value of Doge will have surpassed $1.
That being said, this is not a coin to which you should devote the majority of your resources. Take only small positions on a daily basis, and, as with other crypto assets, invest with money you don't mind losing.
- Can I trade Dogecoin on Obiex?
Yes you can. As of today 23/09/'21, Dogecoin is valued at $0.22 and can be traded on the Obiex website.
2. What’s the best trading strategy to employ with Doge?
Since the value of this coin fluctuates so often, the best strategy to use is day trading. This strategy allows you to take up several short-term day-to-day positions and is perfect for a crypto asset as volatile as Doge.
3. Is this coin safe for me to trade?
As with most crypto assets, the value of Doge is highly volatile and is affected by several factors. Take the usual precautions you’d take with other crypto assets like Bitcoin – don’t invest money you’re not comfortable losing.
4. What can I use Dogecoin for?
Dogecoin can be traded on crypto exchanges. It can also be used to tip other users in social media communities and can be used to make payments at some merchant services. Earlier this year, SpaceX announced that their moon mission scheduled for 2022 will be funded by Doge.
Disclaimer: this article was written by the writer to provide guidance and understanding of cryptocurrency trading. It is not an exhaustive list and should not be taken as financial advice. Obiex Finance will not be held liable for your investment decisions.