ECON Dogecoin spikes 400% in a week, stoking fears of a cryptocurrency bubble

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Dogecoin (DOGE) price: Meme cryptocurrency's rise sparks bubble fears (cnbc.com)

Dogecoin spikes 400% in a week, stoking fears of a cryptocurrency bubble
PUBLISHED FRI, APR 16 20216:39 AM EDT UPDATED FRI, APR 16 20214:06 PM EDT

Ryan Browne@RYAN_BROWNE_
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KEY POINTS
  • Dogecoin is a cryptocurrency based on the “Doge” meme, which rose to popularity in late 2013. It started out as a joke.
  • Now, defying all odds, dogecoin is worth $40 billion, and its price has risen by a whopping 400% in the last seven days.
  • Dogecoin’s skyrocketing price has led to worries of a potential bubble in the cryptocurrency market.
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Dogecoin spiked 400% in a week, fueling fears of a cryptocurrency bubble

Dogecoin started out as a joke. Now it’s a top 10 digital currency worth $40 billion.
The cryptocurrency is based on the “Doge” meme, which rose to popularity in late 2013. The meme portrays a Shiba Inu dog alongside nonsensical phrases in multicolored, Comic Sans-font text.

Created in 2013 by software engineers Billy Markus and Jackson Palmer, dogecoin was intended to be used as a faster but “fun” alternative to bitcoin. It has since found a growing community online.

And now, defying all odds, dogecoin has a total market value of more than $40 billion, according to crypto market data site CoinGecko, adding over $20 billion in the last 24 hours. The digital token reached an all-time high of 32 cents Friday morning, more than doubling in price from a day ago.

‘I just became a Dogecoin millionaire’
It’s not the first time dogecoin has seen a wild climb. Like many cryptocurrencies, it has a tendency for volatile swings in price. In 2018, dogecoin’s price began rising in tandem with other popular digital currencies. It’s been fairly off the radar since then. But earlier this year, dogecoin skyrocketed on the back of enthusiasm from a Reddit group called SatoshiStreetBets.

Similar to the subreddit WallStreetBets, which helped fuel a rally in GameStop shares at the start of 2021, SatoshiStreetBets aims to pump up the prices of cryptocurrencies.

Dogecoin has been climbing again in the past week, hitting 10 cents a coin for the first time on Wednesday. It’s risen by a whopping 400% in the last seven days.

On Friday, a Reddit user posted a picture of their dogecoin holdings on the Robinhood investing app.
“Hey guys I just became a Dogecoin millionaire,” the user said, showing a balance of $1,081,441.29 in their account.

Why is dogecoin rallying?
For one, there’s the Coinbase listing. The most popular U.S. virtual currency exchange went public on Wednesday, briefly hitting a $100 billion market cap in a landmark moment for cryptocurrencies.

The excitement around Coinbase’s debut led to a surge in the prices of bitcoin and ether. Bitcoin hit a record high of more than $64,000 on Thursday, while ether briefly topped $2,500 for the first time Friday morning. Dogecoin has been no exception to the frenzied interest in these digital assets.

Dogecoin has attracted a following among users of Robinhood. On Thursday, the U.S. online brokerage said there was a “major outage” in its crypto trading feature after facing “unprecedented demand.” The feature is now back online, Robinhood said.

Some reports have attributed the latest dogecoin rally to support for the meme-based token from Tesla CEO Elon Musk. He has made several tweets about dogecoin, which in turn has helped push up its price.

On Thursday, Musk posted a cryptic tweet saying “Doge Barking at the Moon,” likely in reference to the popular crypto slang phrase “to the moon.”

The billionaire has called dogecoin his “fav” cryptocurrency and “the people’s crypto.” Musk has also come out as a supporter of bitcoin, with his electric car company buying $1.5 billion worth of the cryptocurrency earlier this year.
But his tweets have worried some investors, given their apparent ability to move markets. Some bitcoin investors, for instance, have sounded the alarm about Musk’s dogecoin tweets. Nic Carter, co-founder of Castle Island Ventures, warned retail investors “are going to lose money on dogecoin,” calling it a “vehicle for speculation.”

Bubble concerns
Dogecoin’s skyrocketing price has led to worries of a potential bubble in the cryptocurrency market. Some investors already view bitcoin as a speculative bubble — the world’s most popular digital coin has more than doubled since the start of 2021.

“Dogecoin’s rise is a classic example of greater fool theory at play,” David Kimberley, an analyst at U.K. investing app Freetrade, told CNBC.
“People are buying the cryptocurrency, not because they think it has any meaningful value, but because they hope others will pile in, push the price up, and then they can sell off and make a quick buck.”

But, Kimberley added, “when everyone is doing this, the bubble eventually has to burst and you’re going to be left shortchanged if you don’t get out in time. And it’s almost impossible to say when that’s going to happen.”

“This is doubly the case in the crypto markets where a small group of players often hold a huge chunk of the total number of ‘coins’ in circulation. That means it only takes one person to dump all their holdings for the entire market to tank.”
 

Loretta Van Riet

Trying to hang out with the cool kids.
Doge coin is a joke. Unfortunetly people are going to get hurt from this. I hate it when celebrities get involved with a product.

People will always be tempted to make "easy" money. I hope no one bets the farm.
 

Baja SS

Froze Member
Doge coin is a joke. It has no use, It has no value. But I use it as a storage location when the markets down. And there's no where safe to invest. I had 7000 shares when the spike hit. :) All that profit is now resting in Amazon
 

glennb6

Inactive
the only 'use' I can see forthcoming from dog-e coin is having it's stored value unlocked via the Flare network when it comes on line. dog-e shit coin value could be then applied to various defi and stable coin usage.

otherwise, doge is a pump and dump, but that certainly doesn't apply to the entire market.
 

Baja SS

Froze Member
The whole thing is insane if you ask me. Here I am, 60 years old. Trading Monopoly fiat for invisible fiat I can't see or hold.
But... It is the way of the future. Todays youth do not want to be bothered with credit cards and bank accounts. They want to do everything on their phones. Crypto will allow this. I thought "Self" get on board early or get left behind.
My question for crypto investors is. Who will end up the big dog Btc or Eth. ?
 

Sid Vicious

Veteran Member
The whole thing is insane if you ask me. Here I am, 60 years old. Trading Monopoly fiat for invisible fiat I can't see or hold.
But... It is the way of the future. Todays youth do not want to be bothered with credit cards and bank accounts. They want to do everything on their phones. Crypto will allow this. I thought "Self" get on board early or get left behind.
My question for crypto investors is. Who will end up the big dog Btc or Eth. ?


Expect BTC to turn into a gold substitute and ETH to actually do stuff with.
 

BornFree

Came This Far
Get everyone in Crypto and then force all transitions to be tracked by the government. You then have a cashless society. And people chose it.
 

Blacknarwhal

Let's Go Brandon!
I bought a thousand dogecoin on a hunch once. It was dirt cheap at the time. I'm hopeful it manages to hit a whole buck, at which point I'll try and sell off.
 

Hfcomms

EN66iq
Not too much different than in 1929 when even grocery stock boys were playing the stock market and everyone thought that as long as you could fog a mirror you were a stock genius and going to get rich. And with crypto we have digital tulips and especially with Dogecoin that was started as a joke and now there is at least one Dogecoin billionaire now.

A billion times zero is still zero and they way they are destroying the dollar that is in our future as well. And just like in 1929 most people realized that the music would stop sooner or later but thought they were smart enough to get out before it happened. Problem is this is 1929 on steroids and it's global.
 

Jubilee on Earth

Veteran Member
Get everyone in Crypto and then force all transitions to be tracked by the government. You then have a cashless society. And people chose it.
You don’t think that’s not going to happen anyway by the gov? The Federal Reserve is already working on that. China is leading the way.
 

Jubilee on Earth

Veteran Member
Not too much different than in 1929 when even grocery stock boys were playing the stock market and everyone thought that as long as you could fog a mirror you were a stock genius and going to get rich. And with crypto we have digital tulips and especially with Dogecoin that was started as a joke and now there is at least one Dogecoin billionaire now.

A billion times zero is still zero and they way they are destroying the dollar that is in our future as well. And just like in 1929 most people realized that the music would stop sooner or later but thought they were smart enough to get out before it happened. Problem is this is 1929 on steroids and it's global.
The same thing is happening again in the stock market. Now that you can buy fractional shares, it’s gone retail. Young kids are into crypto, but Gen Xers are buying stocks at a half a share at a time.
 

Ambros

Veteran Member
Doge is a meme. Given how it's produced/mined I don't know why it is holding much less climbing in value... But... I guess if it does it does. I have a few thousand doge in my portfolio because I was able to get it for like $10 at the time... If it drops below 5 cents again I might buy a few hundred worth and let it climb back up and take profit on it
 

paul bunyan

Frostbite Falls, Minnesota
doge coin car on nascar track 2014.jpg
Ladies and Gentlemen:: Can you believe the 98 Dogecoin Car has moved from close to last place to the top 10???

Be cool little Doge... Don't blow yer engine.

PS: I helped pay for this Doge car "wrap" a long time ago....heh

YMMV, do not remove tag, do not bet more than you can afford to loose, TO DA MOON Cute PUP
 

Twisted

Contributing Member
Go here to see all the coins going down, but doge is still holding around. 30
Bitcoin has dropped to $55,000, and reddit believes its because of thw sec statement about corps laundering money through crypto.
 

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