Alex has been an investor for years now. He has investments in the stock market, cryptocurrencies, bonds, and the United States Treasury.
Dogecoin began as a joke. Many individuals recognize the image of the cute dog's face when thinking about DOGE. It's been something of a subject of humor for some time now. And, people have even made a meme out of it. People have been saying (somewhat jokingly, at times) that it will go to the moon. But, will Dogecoin actually rise heavily in price? The recent rises in Dogecoin prices has been evidence that what fans of the currency have been emphasizing, may have been true after all. It almost seems prophetic, what the Dogecoin fan groups have been saying, typing, and writing.
What Is Dogecoin?
Dogecoin is a cryptocurrency (like Litecoin or Ethereum), that was invented as a joke (unlike other similar currencies). Doge is a digital currency that has , until very recently, been incredibly cheap (although, it is still fairly cheap - as of the time I am writing this article).
For much of its history, Dogcoin has been worth less than one United States cent. That changed at the beginning of this year. For instance, on January 1st of 2020 - Dogecoin was worth around $0.002 United States dollars (USD). Yesterday (April 17th of 2021), Dogecoin was worth more than $0.37 USD. That's an incredible jump!
Let's hypothesize that someone bought 1,000 DOGE on January 1, 2020 at $0.002 USD. That would have costed $2.00 USD. If the same person sold their DOGE on April 16, 2021, they could have about $370.00 USD (about $368.00 profit). That would have been quite a profit!
But, the exciting item of our meditations now - is the possibility that DOGE will go up even more. I can't swear that it won't go back down; and, it eventually may do that. As we have seen with Bitcoin (BTC), crypto can go up and down in bubbles. However, if DOGE acts as BTC did, then those bubbles may come in steady increases over time - that is, it is seemingly possible that Dogecoin may go down at some point, only to rise even higher than before. Imagine if DOGE were to eventually reach one US dollar (which appears to at least be realistically possible now). And, the interesting thing is that many skeptics never thought DOGE would ever get close to $0.30 USD. If you've read a lot of online comments about the coin, you may be aware of this. It was partially for this kind of skepticism that I never invested more than I did. Honestly, if DOGE dips back to under $0.30 USD, I will likely buy more (if I catch it in time). Moreover, none of us know where DOGE is going, but we shouldn't ignore the possibility that its destination may be the moon!
Final Mind Experiment
Let us go back to our earlier hypothesis and consider things further. What if someone bought $2.00 USD worth of DOGE back in 2020 for 1,000 DOGE. If Dogecoin reaches $1.00, then that hypothetical person could make a profit of almost $1,000. But, let's speculate further. What if Dogecoin, one day, reaches Bitcoin's value of around $60,000 USD? We shall consider a future where Dogecoin could be worth about that much. If DOGE ever became worth $60,000 USD, then the person who bought 1,000 DOGE for $2.00 USD would potentially have (in this hypothesized future) $60,000,000 USD! To turn two dollars into over sixty million would be amazing. Now, I have no idea what the future may hold. I'm not going to invest all of my money in DOGE. We've seen, both in crypto and in the stock market - how splits can arise. And, if crypto continues to show itself as something of a reflection of the stock market, then it is possible that some cryptocurrencies may disappear altogether. No one seems to know what the future holds, and I will not pretend to do so. But, I certainly hope in my heart that Dogecoin at least reaches the moon, if not Saturn or Jupiter!
What is Dogecoin? - DOGE Beginners Guide
My Personal Experience
I invested less than $2.00 into DOGE some time ago. I didn't think it would be worth much. It's now worth more than $250.00! Now, it's true that I've had loss in the past - so, I would ask that everyone interested apply the greatest caution. I see this venture as a hobby, and I would recommend that no one use it as a way to gamble. Still, the potential profits I've made on some currencies (if I were to sell them now) are very real. However, even I am careful. This is why I put so little in Dogecoin when I bought some a while back.
Cryptocurrency is a complicated topic, with much more speculation than facts to satisfy our interest. Like all amazing items in our lives, the joy must come in the questions we ask. So, please keep asking questions. You can contact me by viewing my author's page with any thoughts, questions, and comments you may have. Please be careful if you choose to invest - and, never use money that you don't have to spare. Have great days, and I hope to see you at the moon!
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
© 2021 Alexander James Guckenberger
Alexander James Guckenberger (author) from Maryland, United States of America on April 19, 2021:
It began as a joke. It recently rose a lot. If I sold now, my earnings would be in the hundreds (even though I only invested $1.00). Honestly, when there is a steamy currency on the market, I sometimes invest a tiny bit and hope for the best. I can't recommend anything, but you may wish to investigate the topic further (from the side of the enthusiast, like myself, and the side of the skeptic)
Mary Norton from Ontario, Canada on April 18, 2021:
I have read recently about the rise of this coin that I started to be interested in it. I don't know much about it.
MG Singh emge from Singapore on April 17, 2021:
Very interesting and has kindled my interest.
Alexander James Guckenberger (author) from Maryland, United States of America on April 17, 2021:
There's no pressure. It's a hobby of mine. I think if it's seen as only a way to make profits, problems can arise.
Pamela Oglesby from Sunny Florida on April 17, 2021:
Cryptocurrency is an interesting topic, but I am not willing to invest. I keep reading about it, but I am not confident that it is a money maker for someone who is already retired.
I appreciate your article, and it is very interesting.