Drop it...

 
Wealthy Retirement

SPONSORED

Former Chicago Board Options Exchange Trader Predicts...

Click Play
 

Stockflation is coming... Get ready now!

Here's how to protect your cash - click here.

Editor's Note: Just when you think you've seen it all...

As Contributing Analyst Jody Chudley explains below, what started as a joke has become a coin valued higher than Ford Motor Company (NYSE: F) and embraced by Elon Musk and Mark Cuban alike.

So how do you claim your share?

Not so fast. While Dogecoin has soared more than 11,000% this year, capturing the imaginations of novices and seasoned investors alike, it is one of the riskiest outlets for your savings - and ultimately still a joke.

As Jody writes below, there are better ways to play a trend.

For instance, Chief Income Strategist Marc Lichtenfeld is helping readers of his Predictive Profits play the boom in crypto from the sidelines, showing them how to score profits regardless of which coins prosper or flop.

He's doing this with a stock that you can hold in any brokerage account.

Click here to learn more.

- Mable Buchanan, Managing Editor

Why Dogecoin Is Bound to Roll Over

Jody Chudley, Contributing Analyst, The Oxford Club

Jody Chudley

Some people believe that Bitcoin will transform how money will work in the 21st century and beyond.

With central banks printing money like wild across the world, I understand the appeal.

Like gold, Bitcoin can't be manipulated by those central bankers.

There is a limit on the number of Bitcoin tokens that will ever exist - 21 million, to be exact. Nobody can print more of it.

That scarcity Bitcoin offers is the core component of any argument on why it should have enduring value.

The value of paper money can be printed away. That is the one advantage that Bitcoin will always have.

I'm agnostic as to what the future will bring for Bitcoin. I don't know whether it will last.

But what I do know is that Bitcoin is underpinned by a revolutionary technology based on carefully constructed principles set out in a white paper written by the mysterious Satoshi Nakamoto in 2009.

There was structure and science behind the Bitcoin movement.

The founding of Dogecoin, meanwhile, had none of that...

Dogecoin is a joke - and I mean that literally!

Dogecoin is a digital coin with a picture of a dog on it.

The dog is a shiba inu breed, and the picture that Dogecoin uses comes from an internet meme called the "doge meme" that had its five minutes of fame in 2013.

The doge meme was just silly fun. It paired a picture of a shiba inu with broken-word captions that were meant to depict the dog's internal monologue.

Here is a sample...

A Doge Meme
 

It doesn't do much for me, but lots of people apparently liked it.

At the peak of the doge meme's popularity near the end of 2013, an Australian marketer named Jackson Palmer decided to make a simple joke.

He took two of the internet's most popular subjects - the doge meme and cryptocurrency - and combined them.

Palmer tweeted, "Investing in Dogecoin, pretty sure it's the next big thing!"

His tweet hit the exact right moment and went viral.

For fun, Palmer kept the joke going by buying the Dogecoin.com domain name for a few bucks and uploading a photoshopped picture of a shiba on a coin.

It was a ridiculous prank not meant to harm anyone.

Eventually, he was approached by a partner who helped him launch his joke cryptocurrency.

Then, the trading price of this meme-based crypto exploded higher in 2021.

Dogecoin now has a market value of more than $74 billion...

SPONSORED

WANTED: People Who HATE Flipping Houses... but LOVE Collecting Real Estate Income

Angry Business Woman
 

It seems EVERYONE wants to get rich from real estate...

Until they realize how much @#$% work it is!

But there's a better way.

In fact, Forbes says this special type of real estate investment has "a long history of outperforming direct real estate investing."

And it takes just five minutes to get started.

Click here to see how you can make "flipless" real estate money.

A lucky person who bought $10,000 worth of Dogecoin last year is now sitting on a profit of more than $1.6 million.

A Joke Turned Into Millions
 

My take on this is pretty simple... What has happened with Dogecoin is utterly ridiculous.

Dogecoin will end badly for people risking their hard-earned money on something that I don't feel "speculative" comes close to describing.

Dogecoin has all of Bitcoin's weaknesses. It is worth only what other users are willing to pay for it, it isn't backed by any asset or business, and it won't ever produce any income.

But it doesn't have Bitcoin's one undeniable core strength: a permanent limited supply.

Much of the fuel for the Dogecoin price explosion has been supplied by pro-Dogecoin tweets from Tesla's (Nasdaq: TSLA) Elon Musk.

Of course, Musk was also tweeting in support of GameStop's (NYSE: GME) Reddit investor-fueled surge back in February, when I warned readers to stay far away.

While Musk might make some cool cars, I'm very certain that he isn't worried about whether people following his tweets lose all of their money.

Jackson Palmer, who created Dogecoin, never believed his cryptocurrency was anything more than a joke.

He sold off all of his coins six years ago after he was laid off from his job.

In his words, his profits from selling at that point provided "about enough to buy a used Honda Civic."

Too bad for him, but nobody could have predicted what happened to Dogecoin in 2021.

I have a prediction for what will happen to Dogecoin from here, though, and it isn't pretty for people risking their money on it...

Cryptocurrencies may be part of our long-term future, but betting on one based on an internet meme of the internal monologue of a dog is not the way to play it.

Good investing,

Jody

P.S. If you want to profit from crypto but don't want to take on the risk of investing in a meme-based currency, I don't blame you.

A much safer way to do so is to invest in stocks that enable the crypto revolution - and Chief Income Strategist Marc Lichtenfeld has his eye on one...

Click here for details.

SPONSORED

Bill O'Reilly Breaks Down
 

No comments:

Post a Comment