This Morning 🌅, the cryptocurrency Dogecoin reached a new record high. According to Coindesk, the value reached almost 0.72 dollars. The previous peak dates from April 16 and was USD 0.47. Since the beginning of this year, Dogecoin has increased in value by 11,000 percent.
The rise in value of Dogecoin appears to be attributable to nobody but Elon Musk. Tesla's CEO Elon Musk has managed to tweet about Dogecoin's value several times over the past few months.
This time, for the increase in value, reference is made to eToro, a cryptocurrency trading platform that has 20 million users. It was announced on Monday that the platform will start trading Dogecoin. I believe that would have attracted new investors.
Additionally, the Oakland Atheltics American baseball team offered to sell tickets for the amount of '100 Doge'. Those who subscribed - at that time - actually received a 40 percent discount compared to those who would pay in dollars.
The Dogecoin cryptocurrency started as a joke in 2013. One of the founders wanted to show that people invest without doing research. He chose the image of a dog of the Shiba Inu breed as the logo for the coin. That is why 'memes' of the dog frequently appear on social media, accompanied by the phrase 'to the moon', which is a reference to the exponential rise of the digital currency.
During this period, a number of early investors made a lot of money with Dogecoin. A 30-year-old Los Angeles resident decided to invest all of his savings in Dogecoin in February. After two months he claimed to be millionaire. Despite this, he says he will only sell part of his investment when the value reaches $10 million.
Yet financial experts warn that there could be a bubble about to burst. ESMA, the European Securities and Markets Authority, warns in a risk report that investors in digital currencies could lose all their money .
Image Source : unsplash.com