Dogecoin (DOGE) has seen a mark-up of more than 3,000 percent since it first burst onto the scene two years ago. What initially began as a joke, based on the doge meme, has become a ‘one to watch’ in the world of cryptocurrency. Some forecasters believe it could hit upwards of $1 by the middle of the decade which would mark a truly meteoric rise for the cryptocurrency.
Will Dogecoin go back down?
As with any currency, there will be fluctuations in the price of Dogecoin.
Some experts anticipate it will go up, while others are not so confident.
One of the reasons Dogecoin has shot up in recent weeks has been due to SpaceX chief Elon Musk who has tweeted about it several times.
One of Mr Musk’s claims was that he will put a “literal Dogecoin” on the surface of the Moon when he gets his Starship rocket there.
Just last week, Mr Musk tweeted several Doge memes which again increased the value of the cryptocurrency.
However, as it is a coin based on a meme, some experts are treating it as exactly that – a joke.
The currency is currently not regulated and eventually that could come back to bite Dogecoin’s future value.
Johnny Lyu, CEO of KuCoin, told CoinTelegraph: “Compliance is almost a must if it wants to be widely used in our daily lives, while it can also exist in a niche market without any regulation.
READ MORE: Analyst warns ‘you may regret taking a punt’ if DOGE bubble bursts
“Not bad for the future of DOGE in both ways. If the price of Dogecoin rises to $1, its market cap will be $100 billion, becoming the third-largest crypto.
“I think this is unlikely to happen in the short term.”
As is the case with any investment, it is almost impossible to predict with certainty where the future of Dogecoin lies.
Dogecoin is bound to be particularly sporadic with its value as it is seeing a surge in price due to the attention it is getting.
As stock investing site Fool.com pointed out: “The unquantifiable thing about this coin – which has no real purpose – is that it has people’s attention.
“Attention is a fickle and unpredictable commodity, and in this day and age, everybody’s competing for it.
“Let’s say you put $300 into Dogecoin now in the hope that the price will increase before your summer vacation.
“If you’re lucky, top doge Musk will think of some more great tweets, and you’ll be able to sell at a profit before July and have some extra holiday cash.
“But what if Musk doesn’t tweet about Dogecoin between now and then?
“Or, worse, he runs out of doggie puns and throws his weight behind another currency? Your $300 could shrink to next to nothing.”