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Dogecoin now giving 8000 pct returns, watch it closely for next 2 days because Elon Musk is Dogefather

If anyone still thinks that Dogecoin is a joke, they need to wake up. The cryptocurrency has been on a dream run over the last four months and has given more than 8000 per cent returns in 2021 so far.

twitter-logoManas Tiwari | May 6, 2021 | Updated 10:52 IST
Elon Musk and Dogecoin
Musk’s favourite crypto has found support from other voices too.

Highlights

  • Dogecoin has been on a dream run in 2021.
  • Elon Musk has been a big promoter of crypto.
  • Musk set to make SNL appearance on May 8.

If anyone still thinks that Dogecoin is a joke, they need to wake up. The cryptocurrency has been on a dream run over the last four months and has given more than 8000 per cent returns in 2021 so far. It saw a major spiked between Monday and Wednesday this week, surpassing the $90 billion market cap, making DOGE more valuable than some of the biggest companies in the world. It is now more valuable than most Indian companies, except Reliance Industries, TCS and HDFC Bank.

On Wednesday, Dogecoin had hit a record high of Rs 58, jumping from Rs 18 a price it had fallen to late November. There was a mild crash on Thursday, taking the value to Rs 48 (at the time of writing), down by around 9 per cent. However, the next two days are really important for DOGE and the investors need to keep a close eye on with Dogefather Elon Musk set to make a Saturday Night Live appearance on Saturday.

Elon Musk and Dogecoin fever

It's no secret that Elon Musk has been the biggest promoter of Dogecoin since the beginning of this year. His tweets in the past have sent the price up and helped put Dogecoin on the world map. Things are getting serious now. Only few days back, Musk had tweeted "The Dogefather SNL May 8."

The tweet confirmed his appearance as the host of American live television sketch comedy and variety show, Saturday Night Live (SNL), on Saturday but, also suggested that he might talk about Dogecoin on it. Musk hasn't said anything since the tweet, leading to further speculation among investors and crypto enthusiasts.

Going by the history of Dogecoin and how most markets work, its price will see a change depending on what Musk says on the show, or if chooses not to. One thing guaranteed is that all eyes will be on American television as the Dogefather makes his much-awaited appearance. If you have invested in Dogecoin or have been planning to, this the time to pay closer attention.

Musk's favourite crypto has found support from other voices too. Mark Cuban known for his financial decisions tweeted "If I had to choose between buying a lottery ticket and #Dogecoin .....I would buy #Dogecoin. But please don't ask me to choose between it and anything else"

Is Dogecoin sustainable?

While you need to follow Dogecoin closely, this is a question you should have in mind as well is Dogecoin sustainable? A lot of factors suggest it might not be. Most people investing in Dogecoin are young and looking for quick returns. The problem here is that unlike Bitcoin, there are billions of Dogecoins millions minted every year. This means that there is no shortage of this cryptocurrency.

How is that a problem? Well, after a point, there will be so many Dogecoins in the world that there value will fall. It's the simple demand-supply logic. However, this is just speculation, and it's impossible to predict market behaviour.

As Mark Billy Markus. The co-creator of Dogecoin never took this meme currency seriously and ended up selling all of his coins in 2015 to buy a Honda Civic car. He actually never bought the car and used the money to pay his rent. The important part here is that DOGE is now more valuable than the entire Honda company. If only Markus knew the future!

Lack of infrastructure

The recent Dogecoin surge has also exposed the lack of proper infrastructure to trade in digital currencies. As the value went up and most investors started selling or buying Dogecoins, trading platforms in both India and abroad, crashed. Investors who had put a Stop loss on Dogecoin were not able to execute the transaction at that price and many of them ended up with losses. Some of them even took to Twitter to express their anger.

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