The Problem With The 2021 Dogecoin Bubble

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Many people are picking dogecoin to be the next bitcoin. Some say that's ridiculous and it's going crash to 0. Let's go over these arguments and discuss if dogecoin is actually a smart investment to make...

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Created as a joke in 2013, dogecoin has become one of the largest cryptocurrencies that exist today. It’s larger than Litecoin, tether, bitcoin cash & Chainlink. But how did it get so big, is it still a good investment, or is it in a bubble that will inevitable pop?

So on December the 6th 2013 IBM software engineer Billy Markus, and Adobe software engineer Jackson Palmer set out to create a cryptocurrency as a joke. They combine the concept of bitcoin with the meme popular throughout the internet called doge. The result = dogecoin. Just like many people thought Trumps campaign was a joke, or flying an aero plane a 100 years ago, sometimes these things end up changing the world.

And dogecoin only really started to gain transaction in July 2020 when the TikTok community decided to rally around it. They began the hashtag #dogecointiktok challenge which encouraged the community to buy the stock to get it’s price to $1. They worked out that if all 800 million tiktok users bought $25 of dogecoin everyone would reach $10,000 when the price = $1. And this hype from the tiktok community grew the price of the doge. It went from being worth .0023 at the start of the challenge to .0046 by the end of that year.

The dogecoin challenge was somewhat successful with the tiktokers having doubled their money. But there was plenty more to come. January 2021, something unprecedented happens. The everyday working people fight back at large corporate hedgefunds, through buying up shares in gamestop, which hedgefunds had shorted. It was clear that the public had no trust for big corporate powers & they were showing this with their money.

We saw the gigantic rise in the price of Gamestop as the people fought back and instead of shorting it, invested in it. But during this time, we also saw the huge rise in the price of dogecoin. From late January to early February the price of the doge had gone up more than tenfold from .007 to .08.

It was clear that people were starting to trust large controlled currencies less & were moving their money into cryptocurrencies that are decentralized. Not controlled by the government, not controlled by anyone. But this was only the start of the doge. I bring to you the man, the myth, the legend Elon Musk…He’s the richest man in the world, he’s got one of the most followed accounts on twitter & he’s a huge fan of dogecoin…

In 2021 he starts flooding his twitter account with tweets on dogecoin and its price starts taking off. January 28th he tweets a mock up vogue photo, but instead of saying vogue it says dogue. Dogecoin investors go crazy and it shoots up 682%!
February the 4th he tweets “dogecoin is the people’s crypto”. Dogecoin price rises 44%.
February the 7th he tweets “who let the doge out”. Investors react and it goes up 57%.

April the 14th we see on his twitter “doge barking at the moon”. Crypto talk for the price going up like a rocket. And of course dogecoin prices react & they go up. April the 28th Musk sneakily announces that he will talk about dogecoin on his snl skit & prices take off rising 140%.

Thanks to Elons influence and the purchase of dogecoin from a range of celebrities including Snoop Dogg, Mark Cuban, Kevin Jonas, internet celebrity Jake Paul, Dogecoin becomes a mainstream investment and it’s price goes to all-time highs…

Then something weird happens, Elon Musk goes on SNL, jokingly calls Dogecoin a hustle, howls to the moon & its price starts to tumble. However even after it’s recent crash, dogecoin is still among the 4 most valuable cryptocurrencies with a market cap larger than Ford, Kraft Heinz & Delta. This leaves the burning question, is Dogecoin still in a bubble, or should we be buying it because of the potential that it has?...

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DISCLAIMER: It's important to note that I am not a financial adviser and you should do your own research when picking stocks to invest in. This video was made for educational and entertainment purposes only. Consult your financial adviser. * Some of the links on this webpage are affiliate links. This means at no additional cost to you, we earn a commission if you click through and make a purchase and/or subscribe. This has no impact on my opinions, facts or style of video.