The term ‘Cryptocurrency’ first came to life in 1998 when Wei Dai wanted to develop a decentralized payment system based on cryptographic interpretations. But it wasn’t until 2009, exactly a year after the subprime mortgage crisis that shook the world, that Satoshi Nakomoto created Bitcoin, the world’s first-ever cryptocurrency.
Since then, many different cryptocurrencies have been created such as Ethereum, Litecoin, and of course everyone’s favorite dogecoin. Now let’s understand can Dogecoin reach $100?
What is Dogecoin?
- What is Dogecoin?
- How to buy Dogecoin?
- Dogecoin has Potential to Grow
- Will Dogecoin hit $100?
- Final Thoughts
- Frequently Asked Questions
Dogecoin is a cryptocurrency represented by the popular Shiba Inu meme doge, which was invented by software programmers Jackson Palmer and Billy Markus.
Dogecoin was created as a joke on the payment method that was addressing the cryptocurrency world’s speculations by the founders.
When Elon Musk started tweeting about Dogecoin, however, things quickly escalated, and prices began to rise. On May 7, 2021, Dogecoin reached a high of $0.68.
How to buy Dogecoin?
Buying Dogecoin is similar to buying any other cryptocurrency out there. Firstly, you have to sign up on a cryptocurrency trading platform. You will find Dogecoin in top exchanges such as Bittrex Global GmbH, Binance, Robinhood, Kraken, etc.
You must register and verify yourself using your personal information in each of these transactions. After that, you can link them to your bank account, from which you can deposit funds into your exchange wallet.
To ensure safety, you can enable a two-step verification system on your wallet. When the money gets deposited in your exchange wallet you can purchase any of the coins listed such as dogecoin.
Dogecoin has Potential to Grow
Dogecoin does not have a coin cap like other cryptocurrencies. Miners are offered 5 billion coins per year as an incentive for the safety of the network.
Doge would have a market capitalization of $180 billion if it reached $1 per token in terms of valuation. By the year 2030, it is anticipated that 180 billion doge coins will be in circulation.
In comparison to other cryptocurrencies, Dogecoin has a low transaction cost, which is advantageous to miners.
The Shiba Inu meme coin outperforms other cryptos due to its 100x faster transfer time than Bitcoin. According to Dogecoin price forecasts, the coin has the potential to increase in value over time.
Recommended: Explanation of Cryptocurrency’s Future
Will Dogecoin hit $100?
Dogecoin has the ability to grow, therefore a market cap of $180 billion is not out of the question. In the medium term, the meme coin could reach $1.
People are speculating whether dogecoin can hit $100 anytime soon after reaching a high of $0.68. But can such a high price be sustained in the long run? Not at all.
The reasons why Dogecoin will not hit $100 are as follows:
- Uncertain Future
Experts predict that Dogecoin will conclude 2021 at roughly $0.40. The meme coin’s price is extremely volatile, even though it has the potential to reach new highs in the next 5-10 years. Huge price swings send the coin tumbling below average levels, and this remains a major risk to its growth. As a result, dogecoin is not as stable as its crypto rivals, and its future remains uncertain.
- Unrealistic Valuations
The US and China have respective GDPs of $21 trillion and $15 trillion. If Dogecoin reaches $1, it will have a market capitalization of $180 billion dollars. Hence, if the meme currency reaches $100, its total market capitalization would exceed China’s GDP, which is extremely unlikely even in the long run.
- Crypto Irony
Dogecoin began as a joke and evolved into a real cryptocurrency investment. However, it remains the riskiest asset to invest in, and investors should exercise extreme caution when investing in dogecoin.
Even in the long run, it is highly unlikely that Dogecoin will reach $100. In the medium to long term, however, dogecoin could reach a value of $1 or even $10. If you want to invest in dogecoin, make sure you don’t do it all by yourself.
Frequently Asked Questions
I want short-term gains. Can I trade Dogecoin?
Dogecoin is an excellent investment for individuals who can maintain holdings for a long time. Short-term traders should avoid dogecoin owing to its high volatility, which will reduce their profits.
Is it true that a crypto whale holds the majority of dogecoins?
There is a crypto whale who owns around 28% of the dogecoin, which is valued at $28 billion.
When will Dogecoin hit $1?
It’s tough to say when the meme currency will be worth $1, but it’s plausible in the medium term.
Is it safe to invest in Dogecoin?
Dogecoin is a secure cryptocurrency that also delivers real-time data to its investors.
Why does Elon Musk promote dogecoin?
Elon Musk states in one of the tweets that he likes dogs and memes, and that he has been a long-time supporter of Doge.