After remarks from Mark Cuban and Elon Musk that Dogecoin is the greatest currency as a means of trade, the digital coin's value has risen substantially. However, analysts disagree with the two billionaires' evaluation of Dogecoin, as well as the worth and usefulness of cryptocurrencies in principle. Elon Musk has returned to promoting Dogecoin, his favorite cryptocurrency.
His post comes after Mark Cuban, the billionaire businessperson, Shark Tank superstar, and owner of the Dallas Mavericks dubbed the joke coin the world's strongest means of trade. Cuban has long been a supporter of Dogecoin, and he frequently expresses his enthusiasm on Twitter.
"I've been saying this for a long time," Musk tweeted in response to CNBC's tweet, "Mark Cuban thinks Dogecoin is the 'strongest' cryptocurrency as a means of trade." His argument is well made. Mr. Musk can no longer be ignored. Their remarks appear to have piqued the interest of cryptocurrency investors.
As per CoinMarketCap, the price of Dogecoin was 33 cents per coin at noon on Monday, gaining 10 percent in 24 hours. Within four days, Musk's post had over 26,000 likes and 4,000 retweets. Erich Reimer, a policy strategist, and entrepreneur responded to him with a simple sentence: "Should we consider this as his endorsement for Dogecoin?" Maybe we should.
This is not the first occasion Cuban and Musk have spoken out about Dogecoin, and their words are likely to have contributed to the cryptocurrencies' over 7,000 percent increase since January. Dogecoin was dubbed "the one currency that people will utilize for transactions" by Cuban in April.
Meanwhile, Musk simply needs to post remarks like “Doge Barking at the Moon” (“to the moon” is a term used by investors on platforms like Reddit and Twitter to signal a price may skyrocket) and a “Dogue” cover (styled like Vogue) to drive the crypto price soaring. However, not everybody understands the allure of the currency that began as a laugh. In nature, cryptocurrencies are very unstable.
Even Bitcoin, the most popular cryptocurrency, has to deal with frequent difficulties. Cryptocurrency is not governed in the same way that stocks and bonds are, and its arrival might pose a significant danger to its value. Money, recently reported on the prospect of cryptocurrency being outright outlawed. The absence of regulations is also a danger since it prevents financial planners from promoting cryptocurrencies to their customers and prevents investors from purchasing exchange-traded funds.
However, there is no disputing that Dogecoin has a devoted internet following rooting for it to succeed. In April, Hanna Halaburda, a lecturer at NYU School, told Money, “It may be the next great investment”. She noted that it might also be the next pump-and-dump fraud.
In recent times, both Musk and Cuban have shown their support for the meme-based bitcoin competitor dogecoin, with Cuban approving dogecoin as payment for Maverick’s stuff in March and Musk's rocket business SpaceX proposing a DOGE-1 Moon mission early next year.
As part of the Mavericks summer sale, Cuban stated that his Texas basketball club would provide special rates for dogecoin payments. After rising to over 70 cents in May on the strength of a Musk and influencer-fueled surge, the price of dogecoin plummeted by over 70 percent before recovering this month, along with the value of bitcoin and many other significant cryptocurrencies.
According to James Angel, a finance professor at Georgetown University, “There is no convincing business proposition for consumers to adopt it in conjunction with standard payment processes”. “A solid payment medium must have a consistent value, yet Dogecoin is anything but consistent”. He believes that certain influences are pumping and dumping for the sake of profit.
Last month, Musk expanded on prior suggestions to convert dogecoin to Ethereum to achieve "max transaction rates and reduced transaction costs." "Combining something like Ethereum and dogecoin may have some benefit," Musk added.