Is Dogecoin The Next Bitcoin?

The world’s 12th-largest cryptocurrency by market cap started as a complete joke.

Dogecoin was created in 2013 by a couple of bitcoin developers with a sense of humor. It’s based on a popular internet meme of a shiba inu dog with a judgmental look.

Dogecoin shibu coin logo

The cryptocurrency is an offshoot of Litecoin, which itself is an offshoot of bitcoin.

However, unlike its predecessors, Dogecoin has an unlimited supply. There is no scarcity value, and there are currently over 128 billion coins in circulation.

A few weeks ago, Tesla CEO Elon Musk tipped off a 600% rally after he tweeted: “Dogecoin is the people’s crypto.”

To this, he added: “No highs, no lows, only Doge,” and shared a Lion King meme of himself as the monkey Rafiki holding up baby Simba with a Doge head.

Elon Musk Dogecoin Lion King meme

The rally continued as a number of celebrities — including Snoop Dogg, Gene Simmons, and one of the Jonas Brothers — took to social media to show their support.

The hashtag #DogecoinRise was even trending on Twitter with over 32,000 recent tweets.

At $7.8 billion, Dogecoin’s market value is still one-hundredth of bitcoin’s, so the chances of it eclipsing bitcoin any time soon are highly improbable.

Don’t chase Dogecoin up here.

While there might be a few more fools waiting to buy at higher prices, a “rug pull” is highly likely. This could lead to a sharp pullback of over 50% as speculators rush to the exits.

And it turns out that Musk was joking about Dogecoin the whole time. (You would think he’d learned his lesson about joking about investments already.)

Musk’s flirtations with Dogecoin were a tipoff to his real intention. And Tesla’s big announcement on Monday is sending shockwaves across the entire crypto universe.  

Don’t Listen To What They Tell You … Watch What They Do 

On Monday morning, Tesla filed with the Securities and Exchange Commission (SEC), announcing the company now owns $1.5 billion in bitcoin. That amounts to about 8% of its $14.5 billion in cash held at the end of 2020.

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