5 Reasons Why Dogecoin Isn’t A Safe Bet

And isn’t worth putting your life’s savings.

Dogecoin has been the talk of the town for a while. All thanks to the Dogefather — Elon Musk and the loyal Reddit community of the same name. Dogecoin has been encouraged by Snoop Dogg and Mark Cuban. As I write this piece, Dogecoin’s market capitalization is $64 billion. Dogecoin is ranked #5 most popular cryptocurrency.

Dogecoin is a meme-cryptocurrency created by software engineers Billy Markus and Jackson Palmer back in 2013, who later sidelined themselves from Dogecoin.

Elon Musk owned Tesla started accepting Bitcoin as a mode of payment. But a recent tweet by Elon Musk came as a surprise. He told that Tesla was suspending the use of Bitcoin to purchase Tesla, considering the impact cryptocurrency mining has on the environment. In the same tweet, a Twitter user asked Co-founder Billy if he considered the environmental impact while creating Dogecoin. To which he replied, “I made Doge in like two hours I didn’t consider anything.”

If you would have asked me about Dogecoin six months ago. I would have been clueless. Though I knew it exists. The hype around Dogecoin kicked off in 2021. And I too was swayed by the charm of Dogecoin. I was determined to buy Doge after Elon Musk tweeted about his appearance at the SNL.

Dogecoin has had one hell of a run. I too wanted to get my hands dirty. I bought Doge(a stupidly little amount) at $0.35 on April 28. The prices soared to more than $0.75 a day before Elon’s appearance at SNL. But I expected it to even higher. So I waited but later ended up selling it at $0.60 on May 9 and made some quick cash.

Does this mean I’ll never put my money into Doge? I would. Once I understand the trends. But still, I’ll only bet the amount that I can afford to lose. All I earn would be a gift I didn’t expect!

I have been following Dogecoin for more than 3 months now! I have read a lot of mixed opinions about it. Here are 5 things you should consider before putting in your money in Dogecoin:

Unlike Bitcoin, Etherium, Ripple, and other cryptocurrencies that can be used for payments and transactions, Dogecoin has minimum real-world utility.

Dogecoin has been here since 2013 and to date, only 1,300 mostly obscure global businesses accept payments and tips in Dogecoin.

When you buy Dogecoin you are just sitting and wishing that the next person pays you a premium of what you purchased it at. There is very little utility of Dogecoin outside cryptocurrency exchanges.

Source: https://harshitahuja.medium.com/5-reasons-why-dogecoin-isnt-a-safe-bet-88d7078d56e1?source=rss——-8—————–cryptocurrency