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Dogecoin - A Meme Coin | Should you buy?

Dogecoin. You must have heard this word before irrespective of your field of work or profession. It is everywhere on internet and internet is going gaga over this. Snoop Dogg to Elon Musk, everyone is talking about this and you must have seen tons of memes on this. One is below for your entertainment so that we can take Dogecoin to the moon.  #Dogecointothemoon.


It is the most popular crypto currency out there these days along with Bitcoin. But what is really Dogecoin and why investors are buying it?

What is Dogecoin?

In very simple terms, Dogecoin is just another alt coin (alternative cryptocurrencies) in the market which was invented as a joke to make fun of these crypto currencies by Billy Markus and Jackson Palmer in 2013. Dogecoin is faster as it takes only 1 minutes to process a block vs Bitcoin's 10 minutes. However, it got significant traction due to the fact that it is cheap and easier to mine. And Reddit and Twitter are reasons of recent popularity of this alt coin. 



Dogecoin is significantly up recently and the reason is social media. Have a look at above chart. Dogecoin was trading at around USD 0.008 few days back and you can see all of a sudden spike in price and volume in past few days.  Now this surge is primarily led by retail investors or as we call them Robinhood traders and I am sure that end of this uptrend will be very similar to GameStop stock (assuming you know this). At least in upcoming days or weeks, if not in long term.

Third Eye's View

A lot of investor thinks that Dogecoin could be another Bitcoin but one of the problem is Dogecoin's supply. It is literally unlimited unlike Bitcoin which is limited. Now, forget about that debate of store of value and underlying value of these coins..... I just simply don't understand the value of anything which is in abundance and they can release as many coins as they want. So, it is basically demand and supply game these days. 

Final words - If you are free and want entertainment, I would highly recommend this to you. Just put few bucks in this and watch the price going up and down entire day. Otherwise, a big no from my side.  


About author:

Manish Negi is a Chartered Account and an experienced auditor. 

Twitter -  www.twitter.com/camanishnegi

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