Dogecoin has value because other people believe that it has value. Given these limitations, the run-up in dogecoin appears to be purely speculative. "Dogecoin doesn't really have a development team behind it." "If you look at the dogecoin protocol itself, I don't even know if there's anyone over the last several years who has added new functionality or code to it," said Birla. Unlike rival cryptocurrencies such as ethereum, which let programmers build applications on their platform to do things like lend and borrow money, there isn't much anyone can do with dogecoin.ĭogecoin isn't really a reliable store of wealth either, given that this typically requires a certain degree of long-term faith in the coin and the blockchain upon which it's been built. "These days it's all one big marketing ploy," said Mike Bucella, BlockTower Capital general partner. Though more merchants are starting to accept dogecoin as a method of payment, it is nowhere near the level of adoption necessary to be used as any sort of actual currency substitute. The question of whether dogecoin holds value is debatable.Īt the moment, there are very few use cases for the token. "You have Twitter and Reddit, where they're all sort of congregating and thinking about how to pump dogecoin." Valuing dogecoin "You have a rabid online community," Birla said of the fanbase of doge evangelists. The rise of commission-free trading through online brokerage apps like Robinhood also made it easier than ever to buy into crypto. And dogecoin just captured the mind and imagination of every single retail investor." "Elon is basically pushing up this message of, 'Why can't dogecoin have value?'" said Felman. And I'm just going to buy it, because I'm going to buy it.'"Įxperts say the dynamic is reminiscent of the GameStop trading frenzy from earlier this year. "It's like, 'Yeah, this thing can have value, too. "Dogecoin is like this kind of big F-U to the system," said Avi Felman, Head of Trading at BlockTower Capital. There is also the enduring sentiment to "stick it" to the establishment. Apps like Robinhood have made it easier than ever for the casual investor to make a bet on stocks, turning day-trading into a pandemic pastime. Multiple rounds of stimulus checks have meant people have more money on hand to spend. Its price surge this week, attributed by one analyst to Elon Musk's upcoming "Saturday Night Live" appearance on May 8, even managed to briefly crash Robinhood's trading app.īut there is more to dogecoin's record price run than just celebrity backing. Even beef jerky brand Slim Jim is getting in on the action. Dallas Mavericks owner Mark Cuban, Snoop Dogg and Kiss bassist Gene Simmons have all publicly rallied behind dogecoin. Musk, however, isn't alone in his celebrity endorsement of the animal-branded token. "You have this one guy who is sort of like the cult leader," said Asheesh Birla, a general manager at Ripple, which manages an alternative cryptocurrency used for payments. These posts have also helped drive retail investor interest. Musk's tweets with sometimes oblique references to dogecoin often send it to new record-high prices. The billionaire Tesla and SpaceX CEO has spent years talking up the token. It isn't totally clear when or why dogecoin captured the heart of Elon Musk. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |