Dogecoin That can be an incredibly risky move, though, because affordable investments aren’t always good investments.Now lots of investers getting frustrated after seen comparetively slow growth.
Other side, Elon Musk, in all senses, is an influential man. Everything that this man does has multiple layers of intentions and truth behind it, be it something as simple as a tweet. Recently, another tweet graced the Twitter space by the SpaceX and Tesla owner. Elon wrote, “Time is the ultimate currency.” In the digital space, Elon is known as the foster father of the cryptocurrency Dogecoin, which started as a joke but witnessed an 11,000% rise, thanks to Elon.
Time is the ultimate currency— Elon Musk (@elonmusk) September 3, 2021
With this tweet, netizens were forced to scratch their brains about what the tweet means and what Elon plans to do next. Since shared, the tweet is retweeted, with and without quotes, by more than 61,000 people and has gained almost 3.7 lakh likes.
We are reading one side, Other side what Investors are thinking right now ?
Influencer and motivator try to keep hold the confidence but somehow now investor when see growth in others portfolio suddenly they are loosing confidence.
Can see in this tweet indirectly dogecoin growth soehow depend on BTC price, Now People are guessing new price on the basis of current chart Movement.
But how should we look to Doge coin ?
By comparison, two of the biggest names in crypto, Bitcoin (CRYPTO: BTC)and Ethereum (CRYPTO:ETH), have seen their prices increase by around 300% and 1,000%, respectively, over the past year. While many cryptocurrencies have experienced record-breaking returns, Dogecoin is in a league of its own.
It’s hard to ignore numbers like these. However, just because an investment is earning sky-high returns doesn’t necessarily mean it’s a good idea to buy. Dogecoin may be too good to be true, and there’s one huge risk to consider before you invest.
Will Dogecoin survive over the long term?
With any investment, the most important factor to consider is whether or not it’s likely to experience long-term growth. Long-term investments are more likely to bounce back after downturns and retain a competitive advantage in their industry.
Cryptocurrencies, in general, are still highly speculative. In other words, nobody knows for sure whether they’ll still be around in a few years or decades. Dogecoin, however, is especially risky because it doesn’t have as much utility as its competitors.
In order for any cryptocurrency to become mainstream, it must have some type of real-world use. Bitcoin is the most popular type of cryptocurrency, and it’s the type merchants are most willing to accept. That gives it a significant advantage because widespread adoption will be key to any cryptocurrency’s success.
Ethereum also has real-world utility through its blockchain technology. The Ethereum blockchain is not only host to its native token, Ether, but it’s also the network used by non-fungible tokens (NFTs), decentralized finance, and thousands of other applications. The Ethereum technology has the potential to revolutionize a variety of industries, and if it succeeds, its cryptocurrency, Ether, has a good chance of thriving as well.
Dogecoin, on the other hand, has very little utility right now. The few merchants that do accept crypto are more likely to accept Bitcoin than Dogecoin, and Dogecoin doesn’t have any major advantages over its competitors.
Will Dogecoin’s price continue to increase?
Of course, despite having very little real-world utility, Dogecoin’s returns have still outpaced its competitors. However, those gains are largely artificial, and they likely won’t last forever.
Part of the reason why Dogecoin’s price has soared is because it’s been heavily promoted online. Celebrity billionaires like Elon Musk and Mark Cuban have promoted Dogecoin on social media, and retail investors have invested in droves.
The more people who invest in an asset, the higher its price becomes. Dogecoin’s run is similar to the GameStop saga earlier this year when investors pumped up the stock price only to dump it shortly after in an attempt to make a quick buck.
With any investment, if the stock price doesn’t align with the underlying fundamentals, that’s a red flag. Dogecoin has little utility and no competitive advantage in the industry, yet its price has skyrocketed. That’s a sign that this growth won’t continue over the long run.
The price of Dogecoin has already taken a turn for the worse over the past couple of weeks. And unless it develops a way to stay competitive, there’s a good chance it won’t survive over time. So no matter how inexpensive it is, it’s still a dangerous investment.
Disclaimer – This is news based article ( No sell -buy Advise)
