+ 0.00
+ 0%
+ 0.00
+ 0%
+ 0.00
+ 0%
+ 0.00
+ 0%

Why Crypto Experts Can't See Dogecoin Hitting $1 Despite Elon Musk, Mark Cuban Backing

March 11, 2021 4:54 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Why Crypto Experts Can't See Dogecoin Hitting $1 Despite Elon Musk, Mark Cuban Backing

Dogecoin (CRYPTO: DOGE) will not find it easy to reach the $1 mark, even as the joke cryptocurrency attracts a celebrity fan following extending from Tesla Inc (NASDAQ:TSLA) CEO Elon Musk to Snoop Dogg. Experts have their say on the matter:

Reality Bites: Kadan Stadelmann, chief technology officer at Komodo, a blockchain solutions provider said on the topic of DOGE reaching $1, “we aren’t currently seeing this even with increased adoption by Mark Cuban and other NBA owners,” Cointelegraph reported.

“For it to genuinely be considered ‘future money,’ the narrative of DOGE as a meme coin will have to erode.”

It worth noting that Komodo recently launched a decentralized exchange dubbed DogeDEX for users to trade in the cryptocurrency without intermediaries such as brokers.

Math Doesn’t Add Up: Stadelmann brought up the amount of DOGE minted each day, which is 10,000 per minute or 14.4 million per day or 5.2 billion per year. The yearly uptick represents just over 4% of the total circulating supply of 128.701 billion DOGE. The joke cryptocurrency needs $806,000 of new fiat plus existing inflow to maintain its value of nearly $0.056 at press time.

DOGE co-founder Billy Markus said last month that for DOGE to reach $1 would take market capitalization in excess of “actual companies that provide services to millions” like Boeing BA (NYSE:BA), Starbucks Corporation (NASDAQ:SBUX), and American Express Company (NYSE:AXP).

DOGE Is Fun And Games: Joel Edgerton, chief operation officer of bitFlyer, a cryptocurrency exchange told Cointelegraph that DOGE is more for fun rather than solving real-life problems and its value remains unproven. 

“Any asset can reach a certain price target if people are willing to pay for it. However, that type of momentum investing, without underlying value, is pure speculation,” said Edgerton.

See also: How to Buy Dogecoin (DOGE)

Some Contending Thoughts: Musk said last month that DOGE actually has an advantage over Bitcoin (CRYPTO: BTC) as even though the Shiba Inu-themed cryptocurrency seems inflationary it is “not meaningfully so (fixed # of coins per unit time).” Pointing to BTC, Musk said it was “deflationary to a fault.” BTC traded 3.75% higher at $55,946.09 at press time.

Cuban, whose Mavericks basketball team has started accepting DOGE as payment for tickets and merchandise thinks DOGE has an educational role to play as it can teach people the economics of supply and demand.

See Also: Such Doge, Not Much Wow! Mark Cuban 'Making A Mistake' With Dogecoin Payments, Says Long-Time Crypto Bull

The “Shark Tank” investor said this week if enough Mavericks merchandise is purchased by fans, the currency could hit the $1 mark.

KuCoin CEO Johnny Lyu said that DOGE could be used to transact in hotels, restaurants, or cinemas in the future, according to Cointelegraph. 

“Compared to Bitcoin, DOGE is more suitable to be futures money for higher supply, lower price, and faster transactions. It’s tailored for daily payment, and its community culture can easily resonate with the general public.”

Photo by Dogeloverforever on Wikimedia

Related Articles

Dogecoin Co-Founder Says He Can't 'Comprehend' Calls For The Joke Crypto He Created In 3 Hours To Hit $1

Dogecoin (DOGE) co-founder Billy Markus in an open letter on Reddit this week addressed the heightened interest in the cryptocurrency he created as a joke. read more

Patriots Fan Buys Super Bowl LII Tickets Using Bitcoin

Intel, American Express, Honeywell All Under Pressure After Earnings, But Snap Rebounds

The market’s four-week winning streak looks threatened as today’s session opens. The S&P 500 Index (SPX) closed just above 4185 a week ago and finished Thursday near 4135, so it would take a major rally for a green week after the taxman’s visit yesterday. read more