As you start to invest in cryptocurrencies, it is very natural to fall for the hype. When there is a huge hype, the bubble is created. So, the hype around the dogecoin is like a huge bubble. When I started to invest in cryptocurrencies, I had to be very careful, because this currency market is very volatile and risky. But, I decided to plunge, unless I experience it, it would be difficult for me to explain to you.
If you see the history of dogecoin, it was created by two software engineers Billy Markus and Jackson Palmer. It was created like a meme coin. The founders weren’t serious while creating this coin, you can also say they created it for fun. But, due to the scarcity of bitcoin, people started buying dogecoin and the price got inflated by more than 100%.
If you analyze the dogecoin holding pattern, 100 users hold 90% of the dogecoin market, and 5 users control the 40% of the coin supply. 1 user owns more than 28% of the dogecoin. If these people decide to sell their holdings. more than 100 billion doge coins will flood the market and dogecoin prices will crash. So there is a large market capital for this currency, but it controlled by a limited number of people. These kind of commodity are the risky ones.
So investing a huge amount into this coin is risky according to me, but you can invest the amount you ready to lose. If it makes it’s a bumper winning else you lose the money you were decided to lose.
There are few celebrities like Elon Musk and Mark Cuban, who are inflating the dogecoin price by talking about it. These are temporary bubbles created at that moment. If you ask me about investing in it, well I would say invest the amount you are ready to loose
Stay tuned…..
