The term ‘Cryptocurrency’ first came to life in 1998 when Wei Dai wanted to develop a decentralized payment system based on cryptographic interpretations. But it wasn’t until 2009, exactly a year after the subprime mortgage crisis that shook the world, that Satoshi Nakomoto created Bitcoin, the world’s first-ever cryptocurrency. Since then, many different cryptocurrencies have been created such as Ethereum, Litecoin, and of course everyone’s favorite dogecoin. Now let’s understand can Dogecoin reach $100?
What is Dogecoin?
Dogecoin is a cryptocurrency that is represented by the prominent Shiba Inu meme ‘doge’ created by software engineers Jackson Palmer and Billy Markus. The founders decided to create dogecoin as a joke on the payment system that was addressing the speculations of the cryptocurrency world. But things quickly escalated when Elon Musk started tweeting about Dogecoin, the prices started to inflate on the higher side. Dogecoin hit its highest level of $0.68 on May 7, 2021.
How to buy Dogecoin?
Buying Dogecoin is similar to buying any other cryptocurrency out there. Firstly, you have to sign up on a cryptocurrency trading platform. You will find Dogecoin in top exchanges such as Bittrex Global GmbH, Binance, Robinhood, Kraken, etc. In each of these exchanges, you have to register and verify yourself using your personal information. Following this, you can link them up with your bank account from which you will add money to your wallet on the exchange.
To ensure safety, you can enable a two-step verification system on your wallet. When the money gets deposited in your exchange wallet you can buy any of the listed cryptocurrencies such as dogecoin.
Dogecoin has Potential to Grow
Dogecoin does not have a coin cap like other cryptocurrencies. Miners are offered 5 billion coins per year as an incentive for the safety of the network. If Doge was to hit $1 per token in terms of valuation, it would be at a market capitalization of $180 Billion. Approximately 180 billion doge coins are estimated to be under circulation by the end of 2030.
Dogecoin also has a low transaction fee compared to other cryptocurrencies which can be quite beneficial for the miners. The Shiba Inu meme coin trumps other cryptos with its transfer time which is 100x faster in comparison to Bitcoin. Therefore, according to Dogecoin price predictions, the coin does have the potential to grow over some time.
Recommended: The Future of Cryptocurrency Explained
Will Dogecoin hit $100?
Dogecoin has the potential to grow which means hitting a market cap of $180 Billion is not a pipedream. The meme coin can hit $1 in the medium term. With dogecoin hitting a peak of $0.68, people have started speculating whether the coin can hit $100 very soon. But is it possible to reach such a high price in the long run? Not really.
Following are the reasons why Dogecoin will not reach $100:
- Uncertain Future
As per the experts, Dogecoin can end the year 2021 at around $0.40. Although the meme coin has the potential to hit new highs in the next 5-10 years’ time, the price remains highly volatile. There are huge swings in the price that sends the coin plunging below normal levels and remains a key risk towards growth. Hence, dogecoin is not very stable compared to its crypto peers and continues to have an uncertain future.
- Unrealistic Valuations
The GDP of the USA and China is $21 Trillion and $15 Trillion respectively. If Dogecoin hits $1 it has a market cap of $180 Billion. So, if the meme coin were to hit $100 its total market cap would surpass the Chinese GDP which is very unrealistic even in the long run.
- Crypto Irony
Dogecoin was started as a joke which later developed into a serious crypto investment. But it remains the riskiest asset to invest and hence one should be very careful while putting their money into dogecoin.
It is very unlikely that Dogecoin will hit $100 even in the longer run. But dogecoin can reach a value of $1 or even $10 in a medium to long term perspective. If you are keen on investing in dogecoin, you must ensure you do not invest single-handedly in dogecoin.
Frequently Asked Questions
I want short-term gains. Can I trade Dogecoin?
Dogecoin is a great investment for those who can hold long-term positions. As a short-term trader, you should avoid dogecoin due to volatility that will cut down your gains.
Is it true that a crypto whale holds the majority of dogecoins?
There is indeed a crypto whale that holds approximately 28% of the dogecoin valued at $28 Billion in their account.
When will Dogecoin hit $1?
It is difficult to predict when the meme coin can hit $1 per coin but it is possible over the medium term.
Is it safe to invest in Dogecoin?
Dogecoin as a cryptocurrency is safe for investment and also provides real-time data to its investors.
Why does Elon Musk promote dogecoin?
In one of the tweets, Elon Musk says that he loves dogs and memes and has been a well-known promoter of Doge for quite some time.