Who could have predicted a year ago that Doug Coin would be one of the biggest players in the crypto world in 2021? A Japanese dog-inspired cryptocurrency does not want to be intended to attract the attention of investors and the media. This is thanks to the rapid increase in its price in the first months of 2021. So today we tell you that you can buy with $ 1,000 invested in Doc Coin at the beginning of the year.
The Rise of Elon Musk and Dog Coin
Since the birth of Dogcoin in 2013, two of its creators, Billy Marcus and Jackson Palmer, have wanted to create a comic cryptocurrency to test blockchain technology. Without pretending that the virtual currency could eventually become a globally valuable asset, they are neither. He quickly abandons the project and leaves it in the hands of his community.
However, despite being born only as an intellectual practitioner, Dog Coin was able to capture the imagination of people around the world. Have begun to buy cryptocurrency as part of a trend towards investment memes. Communities of Internet users’ investments in a financial product are not due to its inherent qualities or its value to the economy, but rather as part of a cultural movement that manifests itself in finance. This is behind the rise of Gamestop shares.
According to Doc Coin, one of the best motivators behind the movement is businessman Elon Musk, who has always been sympathetic to cryptocurrency, but for months turned this sympathy into a call to invest in cryptocurrency. Virtual currency. It leads millions of people around the world to get cryptoactive, increasing its demand, and therefore its price. The best example of a cultural influence with financial consequences.
$ 1,000 in Dogecoin
Of course, this is only part of the story. Well, in the case of the last increase experienced by DocCoin, the trade-off for DOGE at the time of this writing goes from $ 0.06 to $ 0.27, which is affected by two sources simultaneously. On the one hand, the IPO Coin, Which provided general impetus to the entire crypto market. Elsewhere, a tweet from Elon Musk on April 14 showed his support for DOGE and ended up pushing the virtual currency:
In this way, we reach an interesting point in the history of the financial market, in which the most profitable investment of the year is not gold, Tesla, Bitcoin or Gamestop, but Doc Coin. Well, if you had invested $ 1,000 in DOGE earlier this year, you would have received an incredible $ 55,000 by yesterday. Enough to buy you a Tesla car.
Of course, this raises a big question, not only for the crypto market, but for the entire financial market: is this growth in the price of doc coin sustainable over time? It is the second richest in the world, surpassing the group of fans around cryptocurrency. Doc Coin did not create an economic application to justify the profits it made, and it is not clear if that will happen.