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If you own Elon Musk’s favorite cryptocurrency, Dogecoin, how much will it be worth in 5 years?
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Elon Musk was professing his love for Dogecoin a few years ago – his first post about it dates back to 2019, when he called it his “favorite cryptocurrency” – and since then he has been sending crypto on a rollercoaster following each of your multiple posts on the subject. And earlier this month, in a significant move and yet another seal of approval for crypto, Tesla updated its payment methods to accept DOGE, according to its website.
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This caused the price of DOGE to skyrocket, according to CoinGecko. And on May 10, the price was up 3.5% last week and a whopping 94.1% last year, according to data from CoinGecko.
However, DOGE’s trajectory is complicated, with many alternative cryptocurrencies and memecoins being inherently extremely volatile. And although Musk continues to have a significant impact on DOGE’s popularity and price, it remains to be seen whether his path is linked to it.
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It’s difficult to predict how much DOGE will be worth in five years
Patrick Gruhn – lawyer, entrepreneur, CEO of PMX Technologies and former (now defunct) FTX executive – argued that there is no way to truly predict how much DOGE will be worth a few years from now, especially with “the absolute hype around memecoins on Solana as well.” .
However, Gruhn noted that there is a very interesting point regarding memecoins in general, as they are often seen as a form of protest.
“The argument goes like this: ‘If the government is going to inflate and tax my hard-earned money, paying off their debts, enriching their friends and buying political votes for re-election, then I’m just going to use a completely different monetary system that they can’t get. coin. And it will be a dog on the face of the coin, because that’s what I think about what is currently represented by the faces on our physical coins,’” he said.
“Seeing as Elon is creating an entire ecosystem of software and hardware innovation, perhaps he could support this protest and allow Dogecoin to be used with his products/services, thus ensuring its demand. So, of course, the value over five years could be substantial,” he added.
Other experts weigh in
And although other experts agreed with the premise that it is difficult to predict the price of memecoins due to their volatility, one thing is certain.
“Memecoins are here to stay – at least for now,” said Jeff Owens, co-founder of Refuge1.
Owens noted that despite the lack of underlying technology or a tangible use case, the memecoin frenzy in recent months highlights that these assets have some value – value that predominantly depends on market sentiment.
The story continues
What’s more, institutional adoption of memecoins and their entry into the broader financial scene, such as Tesla stock, will further drive the hype, he said.
However, he also emphasized that these early adoption steps have not stopped memecoin’s volatility.
“By nature, they are a much more volatile investment than other major cryptocurrencies such as Bitcoin or Ether,” he said. “So this is something to keep in mind when investing in Dogecoin, or any other meme-themed coin over the next five years.”
Tayler McCracken, editor-in-chief of Currency agencysaid DOGE also faces significant competition in the memecoin space, with tokens like Pepe, Shiba Inu, Bonk and countless others taking market share.
Memecoin investors, he said, are quick to jump on the latest trends in search of the “next DOGE,” which could further harm Dogecoin’s performance.
What about Musk’s continued impact on Doge? Is Doge’s trajectory linked to Musk?
As Rebecca Liao, CEO of Saga, noted: “Attention is an incredible asset in the digital economy in which the world increasingly operates.”
“We are still in the early stages of this trend, and I must warn that most memecoins will never be worth much in the long run,” she said. “But to unite digital communities, memecoins have a lot of attraction and impact. The fact that many of them are so funny and silly adds to this attraction, as Elon Musk has clearly shown with his affinity for Dogecoin.”
As for Musk’s ongoing impact on crypto, Coin Bureau’s McCracken called him “the elephant in the room.”
According to him, although many consider Elon to be the de facto spokesman for the Doge, there is a risk that he will become bored with the currency and move on to something else.
“There is significant ‘key man risk’ when the price of a cryptocurrency is heavily influenced by the adoption and motivations of a single individual,” he said.
He noted that when Musk was asked why he loves DOGE so much, he pointed out reasons surrounding the humor in the irony of it.
“Elon is in a unique position to integrate Doge into multiple different facets of society as a payment method,” he added. “Depending on Elon’s actions and vision for things like sending Doge to the moon (literally) and accepting Doge for Tesla products – with Elon’s support, the price of Dogecoin will likely remain relevant and perform strongly in the crypto industry.”
McCracken added that even if Musk were removed from this situation, DOGE would likely remain relevant, albeit at a more moderate pace.
“It has become a true blue-chip stalwart for the memecoin community and with Memecoins among the best-performing projects of all time, even without Elon’s promotion, Dogecoin will likely continue its long-term potential,” he added.
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This article originally appeared on GOBankingRates. with: If you own Elon Musk’s favorite cryptocurrency, Dogecoin, how much will it be worth in 5 years?