Dogecoin is like a roller coaster, what are the fundamentals?
The rising price of a cryptocoin, dogecoin, skyrocketed before it sank away like a roller coaster. Cryptocurated dog shiba inu has won nearly 10,000% this year.
According to the latest data coin market cap, dogecoin at 2020's is at us $0.0041612 per coin, while on April 20 it was at us $0.412305 / coin, which in its price skyrocketed by more than 9800%. The price of dogecoin on April 20 was the highest record of all time.
However, three days earlier, the price of dogecoin fell within a chasm of over 50% to $0.203002 per coin.
Seeing such extreme movements, surely many wonder how truly fundamental dogecoin is?
The question is difficult to answer, for a fundamental analysis is used to see the intrinsic value of an asset. On the other hand, the company's net profit in the first quarter of 2007 fell to rp38.3 trillion from the same period last year. While cryptocurrencies do not possess such things.
Even today there is still debate whether cryptocurrency is worth mentioning as an investment asset or not, and whether it has a fundamental value or not.
Dogecoin's different from the bitcoin supply, too. The limited amount of bitcoins, as much as 21 million, cannot be added, and the regenerated amount in the current market is more than 18.6 million. As for dogecoin, the Numbers are unlimited and currently circulating in the market are nearly 130 billion COINS.
Though the Numbers are limitless, it does not prevent the price of dogecoin from escalating. Even after a 50% collapse of the highest record of all time, dogecoin is now a cryptocurrency with the seventh largest market capitalization of us $33.8 billion.
Although dogecoin was actually created as a joke in 2013, mounted by one of its founders himself, Jackson palmer left the company in 2015. He said his goal was to joke and didn't want to make money off the product.
Fundamental dogecoin and other critical currency are difficult to judge, even a burden. What can be known is what caused dogecoin's price to skyrocket to nearly 10,000%. Elon musk is the "mastermind" behind dogecoin's rise, and one would say another crypto.
Bitcoin becomes the first cryptocurrency to be made skyrocketed by elon musk. That was after tesla's electric car company, investing heavily in bitcoin. In addition, tesla also received his pay by using bitcoin.
Elon musk's different ways made dogecoin's price skyrocket. On February 4th, musk wrote dogecoin on his private twitter account. The price of dogecoin's gone up by 50%.
Since then, dogecoin has been promoted by one of the world's richest men, whose prices have skyrocketed, which has finally met with a cynical response from many. "The revival of dogecoin is a classic example of the larger fool theory being played," says David kimberley, a freetrade analyst, an investment application in Britain, quoted from CNBC international.
People buy cryptocurrency, not because they think it has any real value, but because they expect others to buy it then the price increases and then they can sell and make money quickly," he says. Kimberli also says when everyone does that, it becomes a bubble that will eventually burst, the price will plummet. In addition, he felt that a small group of players had a large amount of COINS. So they could create a market collapse when relinquishing ownership.