Cryptocurrency is seeing a boom in value, and all signs point toward it becoming a new asset class worth trillions, an expert recently told Bloomberg. But will Dogecoin be one of those cryptocurrencies that succeeds?
Is Dogecoin a stable investment?
Yassine Elmandjra, crypto analyst at Cathie Wood’s Ark Investment Management LLC, said he sees cryptocurrencies like Bitcoin and Ethereum becoming good long-term successes for people looking to invest.
But Elmandjra said Dogecoin — which has become a problem for some strategists because its value is so volatile — likely won’t last over a long period of time.
- He told Bloomberg that Dogecoin shows the power of memes, where “much of the value is speculative and we’re ultimately going to see a washout from these prices.”
- “But with that being said, I can’t knock people for putting their money where their mouth is and deeming something to be of subjective value when others can’t see it,” he added.
He recommended people look at Bitcoin and Ethereum as proper investments if they want to invest in cryptocurrencies with long-lasting potential.
Dogecoin’s success worries experts
Elmandjra’s comments are similar to what U.S. Federal Reserve Chairman Jerome Powell said about Dogecoin back in April. As I wrote for the Deseret News, Powell said Dogecoin prices were high, which made it hard to find a stable market.
- “Some of the asset prices are high. You are seeing things in the capital markets that are a bit frothy. That’s a fact,” he said.
- “The overall financial stability picture is mixed, but on balance it’s manageable,” he added.