Tuesday's Market Minute: Thar She Doge
For the last several months, Tesla (NASDAQ:TSLA) and SpaceX founder Elon Musk has been pledging to take Dogecoin to the moon. On Sunday, he tweeted that SpaceX is launching a satellite named “Doge-1” on a mission paid for with Dogecoin. This followed Musk’s Saturday Night Live debut when he called the cryptocurrency a “hustle.” Following his appearance on the show, the token shed almost one-third of its price Saturday evening. However, the commodity remains up more than 10,000% this year. Prior to Saturday, Dogecoin has seen a six-month trailing gain of as much as 27,000%. Believers behind this name support its increased adoption, cheaper transaction costs compared to its competition, and the strong community of support fueling its move to the upside.
Memes and Musk aside, the cryptocurrency industry is undoubtedly expanding and thus, evolving. The growing number of lobbyists in Washington show just that, in addition to the recent hiring of former regulators. In terms of legislation, this month the House passed a bill supported by cryptocurrency lobbyists to create a team that will aid in regulating digital coins. Even so, many feel these are not reasons enough to hold Dogecoin. Although the name has witnessed significant outperformance, the skeptics believe it lacks substance relative to its peers.
One argument being that although Dogecoin supporters enjoy the speed and cost of its transactions compared to Ethereum and Bitcoin, other coins still have lower and faster fees – including Nano, Ripple, Litecoin, and Dash. Additionally, Dogecoin debuted to the public nearly eight years ago, and has only broken into 1,300 global businesses as a form of payment. Beyond crypto exchanges, many are wondering if this coin has real utility in today’s world.
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