Is Dogecoin a Good Investment?

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Contributor, Benzinga
Updated: June 15, 2022

Looking to invest in Dogecoin? You can buy DOGE with zero fees on Robinhood!

You might be asking yourself, “how much Dogecoin should I buy?” Well, Dogecoin is almost certainly not a good investment in any traditional sense of good investing, but that might just be the reason to buy it. 

Dogecoin was created by software engineer Billy Markus in only 3 hours. After copying and pasting Bitcoin's core code, Markus spent “the bulk of that time making alterations to the client to make the text Comic Sans”.

Markus will be the first to admit that Dogecoin was created as a joke. He even sold his entire position in 2015 which would have been worth millions today. On May 4, 2021, Dogecoin has surpassed a $75 billion market cap. Since then, however, Dogecoin has fell significantly. While it’s now worth 20% of its all-time high, the dog-themed cryptocurrency still has a multi-billion dollar market cap.

Is it too late to board the Dogecoin rocketship, or will Elon Musk have a few extra Falcon 9s to spare for the journey? If you agree with the latter, you can invest in DOGE on Robinhood today!

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Dogecoin Price

While I am by no means an expert on fundamental analysis, anyone who's ever copy-pasted anything online can tell you that this task is likely not worth $10 billion. 

Just like Bitcoin and precious metals, the price of Dogecoin is only worth what someone else is willing to pay for it. And for some reason, people are willing to pay a lot for the Shiba Inu themed meme coin. 

To find out why we, turn to Richard Dawkins 1976 book, The Selfish Gene, where the word “meme” was coined. “The new soup is the soup of human culture. We need a name for the new replicator, a noun which conveys the idea of a unit of cultural transmission, or a unit of imitation.”

Dogecoin’s price is not based on its underlying technology, it’s based on its cultural value. 

In the Robinhood-GME-Twitter-pandemic era, Dogecoin has somehow managed to unite people all over the world in common pursuits of money, laughter and connectedness. 

For a small price, you can purchase your very own Dogecoin and be a part of a global movement. Remember, market capitalization is the true indicator of a cryptocurrency’s value, not the per token price. Since there are over 132 billion Dogecoins in circulation, the per coin price remains low.

Dogecoin to the Moon?

Dogecoin has pumped 2000% 3 separate times since 2017. That’s kind of its thing. 

The billion dollar question left to be answered: where does it stop? Frankly, nobody really knows. During the 2017 bull run, you would have been sent to the psychiatrist for suggesting $1 dogecoin, but today it’s all twitter can talk about. 

Let’s put things in perspective for a moment. $1 Dogecoin would yield a market cap eclipsing that of Charles Schwab, Blackrock, American Express, IBM and Goldman Sachs. This seems unlikely, but it’s already ahead of E-trade, Hasbro and Levi Strauss - so who really knows anything anymore. 

Should You Invest in Dogecoin?

In 2021, an army of social media-fueled Robinhood investors took down Melvin Capital during the GameStop short squeeze, and decentralized cryptocurrencies have caused panic within central banks across the world. It appears that power is leaking from the top, draining down the ladder through fiber optic cables and WiFi routers. 

If you’re a zoomer or a millennial with a Robinhood account, odds are you already own a chunk of DOGE larger than any financial advisor on the face of the earth would recommend, and you’ve also probably already made a higher yield on it than those advisors will make in the next decade on their stock portfolios. Give yourself a pat on the back, you’ve earned it. 

An investment in Dogecoin is not about making money (although it may happen accidentally) it’s about being a part of something bigger. 

The retail investor is no longer an individual. They’re a team, and Doge is their mascot – at $0.01 or $1.

How to Buy Dogecoin

If you’ve decided to trade some of your money for the opportunity to be part of a revolution, here’s how you can do it. 

Dogecoin is not supported on all exchanges, however you can pick it up on Robinhood, Binance.US and Coinbase

  • Robinhood Crypto
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  • Kraken
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  • Voyager
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    *Other fees may apply.

The Future of Dogecoin

A $10 billion dollar meme tends to shake traditional investors to their core. It even scares many away from cryptocurrency altogether. While many see this as a market top indicator, others still believe Dogecoin will hit $1 before the cryptocurrency bull market is over.

In 2017, the biggest concern facing Bitcoin was it’s viability for everyday use. No stores accepted it as payment (except a few really, really smart ones) and the average person still thought Bitcoin was magic internet money. Now the narrative has changed, and Dogecoin has had a significant impact in cryptocurrency adoption as a whole. Gone are the days of boring CDs and treasury bonds from grandma. The new generation speaks in memes on their iPads from the age of 3, and their finances ought to reflect that. 

Dogecoin introduced the millionaires and billionaires of the future to a technology they didn’t know (and may still not realize) they wanted: blockchain

If the growth of blockchain and Bitcoin truly follow Metcalfe’s law (as they appear to do so far), then widespread adoption through any channel is not only a good thing, but ideal. 

Dogecoin is unlikely to stand the test of time, but it almost doesn’t matter. Elon Musk is currently pushing the price of Dogecoin around with Twitter, and anything he says tends to raise or lower the coin’s price. All that matters is that you can invest at the level you are comfortable with, you understand you could lose that money and you potentially make a profit when you sell during a Musk-induced price spike.

Frequently Asked Questions

Who invented DogeCoin?

DogeCoin was invented by Billy Markus, you can see Benzinga’s interview with him above.

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