DOGECOIN started as a “joke” cryptocurrency but interest in the coin has grown since it launched.
We explain how the cryptocurrency’s value is predicted to change in future, and whether it could hit $1 in 2021.
Remember that buying cryptocurrencies is always a risky business, and you should only invest what you can afford to lose.
They are extremely volatile, and your cash can fall as well as rise in the blink of an eye.
Newer coins such as Dogecoin are even more volatile than other cryptocurrencies.
It’s important to only invest in things you understand, and some products and cryptocurrency services can be very complex.
Before investing you should do your research as cryptocurrency firms aren’t regulated like other financial companies.
This means that you won’t have any protection if things go wrong and you could lose all of your money.
What’s the Dogecoin price?
Dogecoin’s price is $0.331 at the time of writing, up 8.72% on the previous 24-hour period.
However it is down compared to the highs it reached earlier this year, when Dogecoin’s price soared to $0.70.
The surge came after celebrities including Elon Musk and Snoop Dogg publically backed the coin.
However, Musk’s appearance on Saturday Night Live in May sent Dogecoin’s value spiralling.
Dogecoin’s price was over $0.70 on the Saturday of the show, but shortly after Musk’s mention of the cryptocurrency, the price fell, hitting $0.47.
It then went on to fall to lows of $0.25.
Dogecoin was first launched back in 2013 and has the image of a Shiba Inu dog as its logo.
The image became a popular internet meme called doge, and it features the dog surrounded by text in the comic sans font with words like “much wow”.
Software engineers Jackson Palmer and Billy Markus originally created Dogecoin as a joke based on this meme.
It has been marketed as the “fun” version of bitcoin but has gained in value and attracted more serious interest since then.
Dogecoin price predictions for 2021
It’s almost impossible to predict whether Dogecoin’s price will fall or rise this year as cryptocurrencies are so volatile.
The market is unpredictable as it affected by a number of factors, including regulatory crackdowns and comments by high-profile individuals such as Elon Musk.
Sarah Coles, a personal finance analyst at investment firm Hargreaves Lansdown, told The Sun: “Forecasting what’s going to happen next to meme coins is like predicting what’s likely to set off the next tantrum in a room full of toddlers.
“Because it has no underlying value, it’s not generally used for transactions, and is a terrible store of value, the price is driven by highly unpredictable sentiment.
“So while people may point to patterns in the past and make guesses as to whether they will happen again, in reality, it’s impossible to say with any degree of certainty.
“As with those toddlers, any one of them could kick off at any time.”
But that doesn’t stop some crypto fans from forecasting what they think will happen to Dogecoin’s price.
Wallet Investor predicts that dogecoin will hit $0.585 in the next year.
Meanwhile, Digital Coin Price is predicting that it will hit $0.641.
Source: The Sun