Updated on January 17, 2023 07:42 AM
Does Elon Musk's endorsement mean that Dogecoin will hit $1 in 2023? Let's find out.
As Elon Musk Tweeted while announcing launch of SpaceX Falcon 9, it's the first space mission paid for in Dogecoin as well as the '1st crypto in space' and the '1st meme in space'. According to most internet sites, the next Dogecoin price boost might happen in mid to late January.
In May 2021, Elon Musk propelled Dogecoin to an all-time high of $0.74. Musk was the one whose acquisition of Twitter caused Dogecoin to surge 171% in November. Will Musk be the one to drive the price of Dogecoin back up and past $0.1 in January?
Elon Musk recently had the opportunity to address a vital issue for the Dogecoin community amidst all the commotion surrounding Twitter's restructuring and the disclosure of the "Twitter Files." Musk has proclaimed war on Twitter's spam bots. The Twitter team and the algorithm may have been a little too severe in their approach. In 2023, can Elon make DOGE the dominant cryptocurrency?
The dog-themed memecoin may eventually become the platform's default payment method according to a project Musk is calling Twitter 2.0. Although no specifics regarding its implementation have been revealed, payments will soon be a key function on Twitter 2.0, according to Musk's vision for the network.
Musk tweeted about DOGE, the meme currency, in January 2021. Following the Tweet, Dogecoin's price soared by more than 300 percent in only four hours before falling to over half of its new high in the hours that followed.
Musk tweeted in January 2022 that if fast food company McDonald's began to take Dogecoin, he would have a Happy Meal while watching television. One of the most popular options on the McDonald's menu is the Happy Meal. As a result, the price of Dogecoin increased by 9% over the previous day.
Musk tweeted, "I will keep supporting Dogecoin," on June 19, 2022. A prominent case is the $258 billion lawsuit filed against the Twitter CEO for allegedly creating a pyramid scheme to support Dogecoin.
Without mentioning a precise launch date, Elon Musk indicated on Twitter once more that he would accept Dogecoin payments. On Twitter Space, Musk was questioned about if he will introduce cryptocurrency payments to Twitter. Musk said, "Dogecoin to the Moon," in response.
The DOGE price has increased over the last weekend thanks to Elon Musk's most recent hint. At the time of publication, DOGE is trading at $0.10, up 12% from the previous week. The DOGE price increase outpaced advances by some of the leading cryptocurrencies like Bitcoin and Ether during the past two weeks.
Doge has inspired several canine-themed currencies, most notably Shiba Inu, which shares a similar look with doge and is intended to work with the Ethereum network. Shib, which is only worth $0.00001, increased by a third in the days after Musk's completion of the Twitter transaction. Unlike bitcoin, doge and shib both have nearly limitless supply, thus price increases would need more than just speculative hoarding.
Musk's tweet from last week featuring a photo of the Shiba Inu puppy sporting a Twitter t-shirt sparked speculation that the company may one day permit cryptocurrency payments using dog tokens. However, the early surge has stopped, and many cryptocurrency investors are unsure of his level of commitment to dogecoin.
In May of last year, for instance, Musk, one of the richest man on earth, referred to Dogecoin as a "hustle" on a talk show, which caused the price to plummet. Then, in January of this year, Tesla began taking dogecoin in exchange for its goods, like the "Giga Texas" belt buckles and miniature electric car models. Doge may also be used to purchase the recently released fragrance "Burnt Hair" by Musk.
Each year, the quantity of DOGE increases by about 5 billion. This has an impact on the price of Dogecoin, which, if the market cap stays the same, will decrease by more than 3% annually.
In its effort to reach $1, Dogecoin also needs an additional $5 billion in investments per year. Inflation in Dogecoin is compared to currencies with a fixed supply, like Bitcoin.
Even while Dogecoin is well-liked, its fundamental flaws and the fact that it was created in a matter of hours as a joke may start to affect it in 2023.
Smart contracts cannot directly communicate with the Dogecoin blockchain. The foundation of decentralised finance (DeFi) and NFT applications are smart contracts.
Dogecoin can only be used to make payments if smart contracts are not present. Implementing an integration with Twitter would be challenging. Remember that Binance contributed $500 million to the seizure of Twitter, and it's possible that they will be handling bitcoin transactions.
Even if Dogecoin has a lot going for it in 2023, most industry experts (71%), as surveyed by Finder.com, advised investors to sell their Dogecoin.
The main reasons why experts did not support Dogecoin in 2023 are indeed a lack of use cases and restrictions.
Can Dogecoin realistically reach $100?
Because there isn't nearly enough money in the world, this is the case. A $1 gain in Dogecoin would need an investment of $180 billion. Therefore, $18 trillion worth of investment would be needed for Dogecoin to reach $100 by 2030. The world GDP is at $87 trillion.
Is it a good idea to buy Dogecoin?
One of the finest cryptocurrencies to purchase during a downturn is dogecoin. Early 2021 investors who cashed out in May of the same year had profits of more than 13,600%. By the year 2022, Dogecoin has experienced significant growth. For instance, Elon Musk's offer to purchase Twitter had an impact on the price of the meme coin.
Which is better Dogecoin or Shiba Inu?
Since there are only a certain number of Bitcoin, more demand would only increase their value. However, Dogecoin has an infinite supply and 10,000 DOGE are added to the system every minute. Shiba Inu was created with a maximum supply greater than 47 times the total amount of money in the United States, or 1 quadrillion!
Can Dogecoin make you a millionaire?
Doge investments have helped some people become millionaires. Who knows, in a short while you may become the next millionaire Dogecoin trader.
Is it too late to buy Dogecoin?
The current trend, however, has altered trader perceptions, and many now think it was wiser to invest while the market was down to boost their ROI. It is, however, never too late to make a cryptocurrency investment.
Has Elon Musk made a Dogecoin investment?
Although Tesla has been accepting Doge payments for select products on their website, Musk has previously disclosed that he personally owns Dogecoin but has not stated that the electric vehicle manufacturer does as well.