Last week the crypto market was once again surprised by one of the least expected cryptocurrencies. Elon Musk-backed prank cryptocurrency Dogecoin made headlines again thanks to a spectacular rise in its price. However, for a large part of the crypto community, the answer to the question if Dogecoin is an investment or a meme is clear, this being the case of the Muneeb tweeter in the Tweet of the day:
Dogecoin, the investment of the future?
Dogecoin is likely to make the financial history books. And, unlike other crypto assets such as Bitcoin or Binance Coin, whose reason for existing is clear, Dogecoin was born as a joke and has hardly received updates in recent years. Being a project abandoned by its creators and totally maintained thanks to its community.
However, that hasn’t stopped hundreds of people around the world from seeing cryptocurrency as an investment worth making. Entering millions of dollars into the DOGE market in recent months, skyrocketing prices and making Dogecoin the most profitable investment so far in 2021, well above Bitcoin or gold.
This speculative momentum around Dogecoin has also been accompanied by support from Elon Musk. And, the CEO of Tesla and SpaceX has expressed his support for the cryptoactive on multiple occasions through his Twitter account. What has led to more and more people investing in cryptocurrency, even without it having a visible and immediate use. Precisely what the Muneeb comments on Twitter, showing the difference between a meme and an investment:
«Explaining Dogecoin to a friend: Imagine Doogle, a search engine that responds with a meme / joke for any search query, but trades higher than Google’s stock. It’s fun but also sad».
Of course, at this point, and talking about cryptocurrencies, it is impossible to predict whether Dogecoin will be successful in the long term. After all, the virtual currency community can always create new features for it that justify its value. But right now, as Muneeb cautions, Doge is more of a meme than an investment.