Betting on Dogecoin: Is It Worth the Risk?

That promotion across his social media platform has seen Musk change the logo on his homepage to a Shiba Inu, the dog breed used as Dogecoin’s avatar. Upon doing so, the coin’s value jumped by 31% to 10 cents but remember, the all-time high of Dogecoin was 64 cents two years previous.

The Expert View Is Dogecoin Is a Risky Investment

The held view amongst most experts in cryptocurrency is that Dogecoin has become something of a risky investment in the modern day.

Experts like solid alternatives for investment, and Dogecoin is everything that is not with its value derived from the market forces it creates.

Possibly, Elon Musk’s presence puts many sharp brains off because he seems a very miss-trusted figure by the establishment in society.

What You Must Decide Is: Is That Fair?

It must be said the fifty-two-year-old CEO of Tesla Motors is an extremely polarizing figure. Many sources like to pronounce him as the “world’s richest man” which is bound to create a level of resentment amongst society.

The establishment finds Musk’s connections to Russia and Putin extremely off putting; indeed, he is connected from his past in what’s called the PayPal Mafia – many of those original founders have become respected businessmen since.

In fact, Jackson Palmer, the co-creator of Dogecoin, has expressed his dissatisfaction with Musk’s presence, because remember: upon creation, Markus and Palmer only saw the venture as fun.

Palmer has stated that he believes that Musk showed an interest in Dogecoin for his own benefit. Remember polarizing figures like Musk have a huge following, whether those parties love or hate them, and in Musk’s case, he is a magnet for many right-wing theories and free-speech advocates. It’s logically good business for Musk to get those sorts of followers onside given his social media platform that already has a huge and loyal following.

Conclusion

There is an awful lot of caution required on all investments in the Cryptocurrency world and, as always, we advice caution and due diligence while helping our readers in the process.

There are so many conflicting opinions on Dogecoin for us to compartmentalize with many industry experts advising against Dogecoin. They cite how the coin was invented for fun by its developers Billy Markus and Jackson Palmer with the market value derived from the market forces that surround it.

It needs stating that up to present the interest around the coin has always been substantial, and while “X” owner Elon Musk retains such an active involvement, that will not be changing anytime soon.

Our advice is that, if you are looking for a solid long-term return on a substantial investment, then Dogecoin may not be the best option.

That is not to say it has no place in your cryptocurrency portfolio, because Dogecoin is a huge fun community, and with its volatile nature, short-term trading or scalping can be hugely profitable and keep your bankroll fluid. You only need to look at the effect that Elon Musk has had on the coin when his involvement becomes more active. If you time your purchasing to coincide with that, you can derive some nice profits if you’re prepared to sell in the immediate future.

Like the ethos behind the idea of Dogecoin, yes, it’s worth the risk if you keep stakes modest and are an active member of their community.