Why Does Elon Musk Love Dogecoin So Much?

By June 21, 2021 ,

Elon Musk, the billionaire tech entrepreneur, is a huge admirer of Dogecoin and regularly tweets about it, which drives up its price. Many people have gained dogecoin for free through doge faucet.

According to real-time statistics monitored by CoinMarketCap, the cryptocurrency, which was established as a parody, saw a 95.76 percent increase in the last week (Note: market capitalization is constantly changing). One Dogecoin is now worth $0.63, up from $0.5 only a month ago.

According to Bloomberg, the Tesla CEO has made his “Saturday Night Live” debut, prompting Dogecoin traders to organize watch parties for the “market-moving event.” Musk has also dubbed himself “The Dogefather” on Twitter.

Here’s all you need to know about Musk’s involvement with Dogecoin:

How much money did Elon Musk put into Dogecoin? It is unknown how much money Musk has put in Dogecoin. 

Why is Elon Musk fond of Dogecoin?

Musk loves cryptocurrencies because “he enjoys jokes,” and he is “a fun person, and he likes memes, and “doge” is the ideal target for it,” according to Musk.

One of the most appealing aspects of Dogecoin is that it does not take itself seriously. Its cheap price, minimal transaction fees, and active community piqued the interest of many individuals who had never before invested in cryptocurrency. It has a sizable fan base, including many celebrities.

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Elon Musk, CEO of Tesla, is probably the most prominent supporter. Musk, whose tweets have previously increased the value of GameStop and Etsy companies, has issued a series of Doge tweets. Following each one, the coin’s value skyrockets, giving rise to the term “Musk effect.” 

On April 1, he tweeted, “SpaceX is going to place a literal Dogecoin on the literal moon.” “To the moon” is a term used in cryptocurrency circles when individuals think a currency’s price is going to skyrocket. Most observers believe it was not an April Fool’s prank based on his prior tweets.

He merely tweeted “Doge” in February, followed by “Dogecoin is the people’s crypto.” Following Musk’s remarks, the price of Dogecoin increased by 50%. Another well-known tweet included a mock-up of Vogue magazine with the term “Dogue” in lieu of the publication’s title. 

Why do Dogecoin critics – including its creators – dislike Dogecoin so much?

If you are wondering what Dogecoin really accomplishes, you will understand why there is so much doubt about it. Dogecoin was never meant to be used for anything. Because of its low worth, it became a convenient method to tip modest sums on Reddit and video games. It is also worth remembering that, despite Musk’s excitement, you can only purchase a Tesla vehicle using Bitcoin, not Dogecoin. 

In contrast, the prices of two of the most popular cryptocurrencies, Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) have increased by approximately 300 percent and 1,000 percent, respectively, during the last year. While several cryptocurrencies have had record-breaking gains, Dogecoin is in a class by itself. 

It is difficult to ignore figures like this. However, just because an investment is generating exorbitant returns does not always imply that it is a smart investment. Dogecoin may seem to be too good to be true, but there is one major danger to consider before investing. 

A cheap cost is not necessarily a good thing.

Cryptocurrencies such as Bitcoin and Ethereum are the most prominent participants in the crypto world, but they are also the most costly. When Bitcoin hit its high in mid-April, it cost approximately $65,000 per token. At its peak in mid-May, Ethereum cost little more than $4,000 per coin.

Dogecoin’s all-time high, on the other hand, was just $0.68. With a price like that, it is one of the most cost-effective investments available. If you are on the fence about investing, it is tempting to purchase Dogecoin just because it is inexpensive.

However, this may be a very hazardous decision since cheap investments are not necessarily excellent ones. If you purchase Dogecoin only because it is less expensive than its rivals, you may end up losing money.

While all cryptocurrencies are hazardous investments, Dogecoin is one of the most perilous. Before you even consider purchasing, you should evaluate how this investment will perform over time. 

Will Dogecoin be around in the long run?

The most essential aspect to examine with every investment is whether or not it is likely to enjoy long-term growth. Long-term investments are more likely to recover from downturns and maintain a competitive edge in their sector. 

In general, cryptocurrencies are still extremely speculative. In other words, no one knows for certain if they will still exist in a few years or decades. Dogecoin, on the other hand, is particularly hazardous since it lacks the use of its rivals. 

Any cryptocurrency must have some sort of real-world use in order to become popular. Bitcoin is the most widely used cryptocurrency, and businesses are most eager to take it. This offers it a major edge since broad adoption is critical to the success of any cryptocurrency.

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