Predictions on Dogecoin
Alexander told Yahoo! Finance in a recent episode that she has noticed Dogecoin’s rise because of its “‘retail-rebel-reddit” following.
- “It costs so little, that retail investors can hold a lot of dogecoins; it has also taken over the ‘rebel’ role that bitcoin used to have ... and it has the backing of the same reddit forces that took on the big institutional investors with GameStop,” she said.
However, it’s hard for her to see Dogecoin becoming the currency of the internet since, well, people can’t spend it yet, as Dallas Mavericks owner Mark Cuban explained. Of course, there’s some suggestion that might change as Robinhood CEO Vlad Tenev said his app may allow people to withdraw their Dogecoin holdings, as I wrote for the Deseret News.
Will Dogecoin rise more?
Alexander can still see the cryptocurrency rising high — but it needs to get back to its roots, too.
- “I think Dogecoin might continue a (very bumpy) rise in price and during this time I really hope it recovers its origins,” said Alexander, suggesting that Elon Musk’s idea of it becoming an internet currency may be misled.
Dogecoin founders and original holders would “often use the tokens to give each other small tips in online forums or band together to take on unlikely causes,” according to The New York Times. This included sponsoring Jamaica’s bobsled team in the 2014 Winter Games.
- “If (Elon Musk) wants Dogecoin to have any fundamental economic value, he needs to direct it back towards its benevolent grass roots,” The New York Times reports.