Will Dogecoin hit a Dollar ?
Reddit Stock users once again demonstrate the fragility of the stock market. After verifying that the GameStop experiment worked, they now focused on cryptocurrencies. The Dogecoin, created as a joke in 2013 when it was worth $ 0.000232 USD, now stands at $ 0.072330 per unit, and stock data shows it will hit a dollar.
The goal of the new commercial attack: to make a virtual currency with the image of a puppy (famous for being an internet meme) worth as much as a dollar.
What is and how does a cryptocurrency work ?
In essence it is like any other currency, with the difference that there is no physical version of it. There are no bills or well, coins, just electronic transactions via the internet. Therefore, to possess them you must have an “electronic purse” that can be carried on a pendrive or stored in the cloud .
Furthermore, cryptocurrencies do not belong to any government , but to users. It is like going back to the very origin of money, where the value of a commercial transaction was not dictated by a sovereign, but by the merchants themselves.
If in a community the seashells are valid to be exchanged for food, that will be a currency, although it will only be valid among those who agree to use it.
As more people enter this agreement, its value increases . If more countries had preferred to use seashells instead of gold, today’s trade would be very different.
It’s the same with cryptocurrencies: someone (anyone, with the necessary programming knowledge) creates one, and its value will depend on how many people own the currency and how many people accept it for a transaction.
Popular puppy
After what the Reddit group called WallStreetBets coordinated a series of maneuvers to increase the shares of the video game store GameStop in the stock market, the world was watching the Wall Street bigwigs do damage control in anticipation of the next internet movement.
And that move didn’t take long. A Reddit user calling himself ” Satoshi ” created the SatoshiStreetBets forum , with the original goal of making a “GameStop effect” but with the cryptocurrency market.
One of the first forum posts read: ” Let’s make DOGECOIN a thing. That’s it. That’s the post .” (“Let’s make DOGECOIN a real thing. That’s it. That’s the post.)
Thus, the more users buy Dogecoins, the value of the currency begins to increase (as we already explained, the more its holders, the greater the validation it receives).
And although $ 0.072330 of a dollar seems like a small thing, let’s think, how many coins in the world are worth almost three-quarters of a dollar? Dogecoin’s current capitalization stands at $ 8.2 million , making it the ninth most valuable cryptocurrency in the world.
Playground for millionaires
Now that the new game has been released, the contestants start to show their faces, and one of them is Elon Musk (again).
Ever since Dogecoin appeared, Musk declared that it was his favorite cryptocurrency. Now, on his Twitter account, he published a photograph of the magazine ” Dogue “, a parody of Vogue magazine. Why is this so momentous?
Simply because if someone of Musk’s economic stature shows their validation for a coin, it increases its value. But Musk’s validation still appears to be veiled (not like Tesla Inc. accepts Dogecoins for its products). The situation seems to amuse the billionaire a lot.
Meanwhile, the digital trading site ” Robinhood ” has stepped in again (as it did in the GameStop case), and put a stop to the indiscriminate buying and selling of Dogecoins, preventing the chart from spreading out of control. Again, a little tricky “market regulation”.
From 2021 we expected a lot, but not that a game store would unleash Wall Street mayhem and that a coin minted with a meme would become that valuable.