Dogecoin that started out as a fun or experimental coin has gained a lot of ground in the last few months.
Initially, it was made as a joke by Billy Markus and Jack Palmer and never really expected it to take off the way it has.
The currency has gained attention, ever since Elon Musk has been tweeting about it.
Many personalities have also shared their views on the trend and dogecoin is hence making a lot of headlines.
Now, the question comes: should you invest in Dogecoin?
To understand this, one needs to first take certain points into consideration, including- legitimacy, history of the project, market valuation, etc.
According to Kumar Gaurav, founder and CEO- Cashaa, dogecoin has been in the market for over 7 years now, hence, in terms of its legitimacy, there aren’t any questions.
“Secondly, it is said to have a defined purpose of creating a payment system that is free from traditional banking fees. So, if an investor puts money in the coin, he or she is basically participating in a constructive project, which forms for a good investment,” he states.
However, Gaurav adds that this is only his personal opinion and shouldn’t be taken as any financial advice.
The real reason for the growth of Dogecoin, as per Gaurav, is its low value, which is also helpful to teach new investors about crypto and basic principles of demand and supply in the market.
“The industry is in its initial stages and the value of the coin will grow given the fact that a huge number of people are joining the market every day and they pick something at a low price, to begin with. Dogecoin is at a low price right now and also considerably popular. Hence, it is a good bet, but as an investor, one needs to know when to exit from it,” he affirms.
Ashish Singhal, CEO and co-founder, CoinSwitch Kuber calls this totally a subjective decision.
“Investments in dogecoin is like any other form of cryptocurrency and should be only be done up to an amount that one is fine with losing,” he suggests.
Comparing it to bitcoin, Sathvik Vishwanath, CEO and co-founder of Unocoin tells that while the main reason for the invention of bitcoin is fast and free payments on the internet, the increase in the price of bitcoin and very high transaction fees that needs to be paid to get the transaction in the blockchain is one of the main reason for many to think that dogecoin is a better alternative.
With its transaction confirmation times being less than few minutes, and every coin to be worth no more than a few rupees, Vishwanath believes it is positing itself to be the fast free transfer use-case saviour while bitcoin is establishing itself as a digital gold which is meant to be like a reserve currency on the internet.
The investment into this, he however warns, has appeared to be riskier than investment into bitcoin based on its previous trends but the acceptance of the use case by the general public has the potential to make this coin as well a good investment.
Reference: CNBC TV18