Can Dogecoin Make You Rich?

Dogecoin (CRYPTO: DOGE), called after the Shiba Inu "doge" meme, was founded in 2013 by two software developers as a spoof of Bitcoin and other cryptocurrencies. Dogecoin didn't initially attract serious crypto investors, but upgrades, celebrity endorsements, and FOMO have driven its price up over the past three years.  

Dogecoin reached an all-time high of $0.73 on May 8, 2021, 73 times its $0.01 start-up price. Some analysts predicted its price would reach $1 by year's end. Dogecoin currently trades at $0.16. The cryptocurrency lost its appeal as rising rates prompted investors to be more cautious. Bitcoin, which surged more than 10% as Dogecoin lost 80% of its value, attracted more individual and institutional investors.  

Should investors lose up on Dogecoin? Could it recover and make bold investors millionaires?  

Why did Dogecoin soar in 2021? The open-source code for Litecoin, a 2011 Bitcoin fork, was used to create Dogecoin. Investors originally laughed at Dogecoin, but its engineers improved its access speeds and transaction fees. Scrypt, Dogecoin's hashing algorithm, was less power-intensive than Bitcoin's mining method. Dogecoin gained recognition from online supporters, known as the "Doge Army."  

Celebrities including Elon Musk, Mark Cuban, and Snoop Dogg pushed the token on social media in 2021 due to its rising popularity. Many ordinary investors bought growth stocks, meme stocks, cryptocurrencies, and other risky assets because to social media buzz and stimulus checks. Dogecoin's stock reached a record high on such tailwinds.  

Dogecoin's price dropped over the next three years—why? Dogecoin's price plummeted during the next three years as rising interest rates sparked a "crypto winter." The U.S. Securities and Exchange Commission (SEC) approved the first Bitcoin spot price exchange-traded funds (ETFs) earlier this year but rejected similar ETFs for other cryptocurrencies, leaving Dogecoin out in the cold.  

Unfortunately, numerous high-profile cryptocurrency exchanges and tokens failed, casting a shadow over Dogecoin and other altcoins. The New York State Department of Financial Services (DFS) just removed Dogecoin from its "green list" of eight regulated cryptocurrencies, including Bitcoin, Ethereum, and six PayPal and Gemini stablecoins. Exclusion suggests Dogecoin is riskier.  

A few businesses take Dogecoin, but its unpredictable pricing makes it unattractive for most payments. The Dogechain blockchain network, established by Dogecoin holders, allows decentralized apps, games, and NFTs, however it's not as popular as the Ethereum Network. Dogecoin is hard to value without those underpinnings. So Bitcoin and Ethereum outperformed Dogecoin after its 2021 top.   

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