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If you own Elon Musk’s favorite cryptocurrency, Dogecoin, how much will it be worth in 5 years?

Published

9 months ago

13 May, 2024

If you own Elon Musk's favorite cryptocurrency, Dogecoin, how much will it be worth in 5 years?

bizoo_n / iStock.com

Elon Musk was professing his love for Dogecoin for a few years now — his first post about it dates back to 2019, when he called it his “favorite cryptocurrency” — and since then it has been sending the cryptocurrency on a roller coaster ride following each of his multiple posts about it. And earlier this month, in a significant move and an additional stamp of approval for cryptocurrency, Tesla updated its payment methods to accept DOGE, according to its website.

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This sent DOGE’s price soaring, according to CoinGecko. And as of May 10, the price was up 3.5% over the past week and a whopping 94.1% over the past year, according to data from CoinGecko.

However, DOGE’s trajectory is complicated, as many alternative cryptocurrencies and memecoins are inherently extremely volatile. And while Musk continues to have a significant impact on DOGE’s popularity and price, it remains to be seen whether his path is tied to him.

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It is difficult to predict how much the DOGE will be worth in five years

Patrick Gruhn – lawyer, entrepreneur, CEO of PMX Technologies and former (now deceased) FTX executive – argued that there is no way to truly predict how much DOGE will be worth years from now, especially with “the absolute hype around memecoins even on Solana” .

However, Gruhn noted that there is a very interesting point about 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 to pay off its debts, enrich its friends, and buy political votes for re-election, then I will simply use a completely different method – a monetary system that they can’t mint. And it’s going to be a dog on the face of the coin, because that’s what I think of what is currently represented by the faces currently 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 demand for it. So, obviously, the five-year value can be substantial,” he added.

Other experts intervene

And while other experts agree with the premise that it is difficult to predict the price of memecoins due to their volatility, one thing is for sure.

“Memecoins are here to stay, at least for now,” said Jeff Owens, co-founder of Paradise1.

Owens noted that despite the lack of underlying technology or tangible use case, the memecoin frenzy in recent months highlights that these assets have some value, value that largely depends on market sentiment.

The story continues

Additionally, the institutional adoption of memecoins and their entry into the broader financial landscape, like Tesla’s move, will further increase the hype, he said.

However, he also stressed that these early steps of adoption have not prevented memecoin volatility.

“By nature, they are a much more volatile investment than other major cryptocurrencies like 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 Coin Officesaid DOGE faces significant competition in the memecoin space as well, with tokens like Pepe, Shiba Inu, Bonk and countless others gaining market share.

Memecoin investors, he said, are rushing to catch the latest trends in search of the “next DOGE,” which could further dampen Dogecoin’s performance.

What about Musk’s continued impact on Doge? Is the Doge’s trajectory linked to Musk?

Like Rebecca Liao, CEO of Saga, noted, “Attention is an incredible asset in the digital economy the world increasingly operates in.”

“We are still in the early stages of this trend and most memecoins, I should caution, will never be worth much in the long term,” he said. “But for keeping digital communities together, memecoins have a lot of attraction and impact. The fact that many of them are so fun and silly only adds to this attraction, as Elon Musk has clearly demonstrated with his affinity for Dogecoin.”

As for Musk’s continued impact on cryptocurrencies, Coin Bureau’s McCracken called it “the elephant in the room.”

According to him, although many consider Elon the de facto spokesperson of the Doge, there is a risk that he will get bored of 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 to the humor in the irony of it.

“Elon is uniquely positioned to integrate Doge into multiple different aspects of the company 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 products for Tesla, with Elon’s backing, Dogecoin price is likely to remain relevant and with strong performance in the industry of cryptocurrencies.”

McCracken added that even if Musk were removed from this situation, DOGE would likely still remain relevant, albeit at a slower pace.

“It has become a truly world-class bastion for the memecoin community and since Memecoin is 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.com: If you own Elon Musk’s favorite cryptocurrency, Dogecoin, how much will it be worth in 5 years?

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Related Topics:doge Dogemoneta Elon Musk Patrick Gruhn

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How Ether Spot ETF Approval Could Impact Crypto Prices: CNBC Crypto World

Published

7 months ago

3 July, 2024

AltcoinUpdates Staff

How Ether Spot ETF Approval Could Impact Crypto Prices: CNBC Crypto World

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CNBC Crypto World features the latest news and daily trading updates from the digital currency markets and gives viewers a glimpse of what’s to come with high-profile interviews, explainers and unique stories from the ever-changing cryptocurrency industry. On today’s show, Ledn Chief Investment Officer John Glover weighs in on what’s driving cryptocurrency prices right now and how the potential approval of spot ether ETFs could impact markets.

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Miners’ ‘Capitulation’ Signals Bitcoin Price May Have Bottomed Out: CryptoQuant

Published

7 months ago

3 July, 2024

AltcoinUpdates Staff

Miners' 'Capitulation' Signals Bitcoin Price May Have Bottomed Out: CryptoQuant

According to CryptoQuant, blockchain data shows signs that the Bitcoin mining industry is “capitulating,” a likely precursor to Bitcoin hitting a local price bottom before reaching new highs.

CryptoQuant analyzed metrics for miners, who are responsible for securing the Bitcoin network in exchange for newly minted BTC. As outlined in the market intelligence platform’s Wednesday report, multiple signs of capitulation have emerged over the past month, during which Bitcoin’s price has fallen 13% from $68,791 to $59,603.

One such sign includes a significant drop in Bitcoin’s hash rate, the total computing power that backs Bitcoin. After hitting a record high of 623 exashashes per second (EH/s) on April 27, the hash rate has fallen 7.7% to 576 EH/s, its lowest level in four months.

“Historically, extreme hash rate drawdowns have been associated with price bottoms,” CryptoQuant wrote. In particular, the 7.7% drawdown is reminiscent of an equivalent hash rate drawdown in December 2022, when Bitcoin’s price bottomed at $16,000 before rallying over 300% over the next 15 months.

This latest hash rate drop follows Bitcoin’s fourth cyclical “halving” event in April, which cut the number of coins paid out to miners in half. According to CryptoQuant’s Miner Profit/Loss Sustainability Indicator, this has left miners “mostly extremely underpaid” since April 20, forcing many to shut down mining machines that have now become unprofitable.

CrypotoQuant said that miners faced a 63% drop in daily revenue after the halving, when both Bitcoin block rewards and transaction fee revenues were much higher.

During this time, Bitcoin miners were seen moving coins from their on-chain wallets at a faster rate than usual, indicating that they may be selling their BTC reserves“Daily miner outflows reached their highest volume since May 21,” the company wrote.

Among the sales of Bitcoin miners, whales and national governmentsBitcoin’s price drop in June also hurt Bitcoin’s “hash price,” a metric of Bitcoin Miner Profitability per unit of computing power.

“Average mining revenue per hash (hash price) continues to hover near all-time lows,” CryptoQuant wrote. “Hashprice stands at $0.049 per EH/s, just above the all-time low hashprice of $0.045 reached on May 1st.”

By Ryan-Ozawa.

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US Congressman French Hill Doubles Down on Trump’s Pro-Crypto Stance

Published

7 months ago

3 July, 2024

AltcoinUpdates Staff

US Congressman French Hill Doubles Down on Trump's Pro-Crypto Stance

US lawmaker French Hill has noted that Donald Trump will take a more pro-crypto approach than the current administration. The run-up to the presidential election has seen cryptocurrencies become an issue with lawmakers making huge statements ahead of the polls. Donald Trump has also been reaching out to the industry, making a pro-crypto case.

French Hill Backs Trump’s Pro-Crypto Stance

Republican Congressman French Hill has explained the type of cryptocurrency regulatory framework he believes Donald Trump could adopt in the country. In a recent interview with CNBC, French Hill said that the recently passed FIT21 bill is the type of regulatory framework the Trump administration will adopt in the sector.

#FIT21 passed the House with 71 Democratic votes, it’s exactly the kind of digital asset regulatory framework former President Trump would support if re-elected.

See more on @SquawkCNBC🔽 photo.twitter.com/ceTmU4LApU

— French Hill (@RepFrenchHill) July 3, 2024

THE FIT21 Bill It is intended to protect investors and consumers in the market by establishing clear rules and powers for the various regulators in the sector. According to Hill, Trump will adopt it because it directs the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) on the specific regulatory framework needed in the market.

“… for people who are innovating and starting a crypto token, a related business, custody of those assets, how to ensure consumer protection, so I think that framework is the right approach and that’s what I’m going to recommend to the President to pass, which is that we have not passed it between now and the end of this Congress.”

He also called Trump an innovative and pro-growth president in financial matters.

Cryptocurrency is going mainstream

This election cycle saw the cryptocurrency industry taking a place in mainstream issues following broader adoption across demographics. From candidates moving toward enthusiasts to recent pro-Congress legislation, cryptocurrencies have become a rallying point for officials. The U.S. regulatory landscape has been criticized for stifling growth due to frequent SEC LawsuitsThis has led executives to push for pro-cryptocurrency laws and raise money for pro-industry candidates.

David Pokima

David is a financial news contributor with 4 years of experience in Blockchain and cryptocurrency. He is interested in learning about emerging technologies and has an eye for breaking news. Keeping up to date with trends, David has written in several niches including regulation, partnerships, cryptocurrency, stocks, NFTs, etc. Away from the financial markets, David enjoys cycling and horseback riding.

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US Court Orders Sam Ikkurty to Pay $84 Million for Cryptocurrency Ponzi Scheme

Published

7 months ago

3 July, 2024

AltcoinUpdates Staff

U.S. Court orders Sam Ikkurty to pay $84M for crypto Ponzi scheme

A federal court has ordered Jafia LLC and its owner, Sam Ikkurty, to pay nearly $84 million to cryptocurrency investors after ruling that the company was operating a Ponzi scheme.

The ruling, issued by Judge Mary Rowland in the U.S. District Court for the Northern District of Illinois, follows a lawsuit filed by the Commodity Futures Trading Commission (CFTC) in 2022 after the fund collapsed.

Judge Rowland found that Ikkurty, based in Portland, Oregon, did numerous false claims on his company’s hedge funds.

These included misleading statements about his trading experience and the promise of high and stable profits. Instead, Ikkurty used funds from new investors to pay off previous investors, a hallmark of a Ponzi scheme.

The Ponzi Scheme

The court found that Ikkurty misappropriated investment funds for personal use without the knowledge of the investors. These funds were used for personal use and were reported as Fraudulent Investmentscausing significant financial losses to customers.

This non-transparent operation violated Transparency Commission regulations, which led to the imposition of a hefty fine to compensate defrauded investors and restore some public confidence in the financial system.

Judge Rowland emphasized that fraudulent activity such as this violates the law and undermines the integrity of modern financial markets. The $84 million award seeks to address the financial harm inflicted on investors and reinforce the importance of legal compliance in cryptocurrency trading.

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