When people have money, their words are not always advice to you.
W.When billionaires use social media, be careful not to follow their advice verbatim. Her advice could broke you before you ever know what happened.
If you’ve been tracking cryptocurrencies for even a short time, Elon Musk and Mark Cuban indirectly advised to invest in Dogecoin. This will come back to hurt a lot of people who have no idea what they are doing.
Dogecoin is easy for anyone to buy and invest or trade.
When Dogecoin was trading for less than a dime, Dogecoin was a joke because it was a dog’s meme.
Two software engineers created Dogecoin on December 6, 2013 as a joke.
Billy Markus, an IBM programmer from Portland, Oregon Jackson Palmerwho worked for Adobe (ADBE). Palmer bought the domain dogecoin.com. The “Doge” meme was popular on the internet at the time. Markus wanted to do his cryptocurrency differently from Bitcoin.
The Dog on Dogecoin is a Japanese breed of Shiba Inu dog.
Bitcoin has a fixed supply of 21 million Bitcoins where Dogecoin has 129 million Coins and more can be created every year. Cryptocurrencies are valued based on supply and demand. In general, the less offer is available or the scarcer a cryptocurrency is, the higher the price. But the more supply available for a cryptocurrency, the lower the price of the coin. There are more based on cryptocurrency usage, but this is how it generally works.
When Elon Musk tweets about Dogecoin, millions of his followers see it. Musk is over 51 million Twitter followers. Some of his fans hope that Dogecoin will hit at least $ 1. This reminds me of the GameStop trading that WallStreet Bets operated and many other people rallying to trade with them.
The danger is that some people have never invested before or have limited experience investing. What happens if one day the Dogecoin whales decide to withdraw? As a result, the price drops very quickly.
If a person who has invested in Dogecoin is not careful, they can lose a lot of money.
I’ve seen some people share screenshots of them buying Dogecoin when the price was over 0.20 cents. If they sell Dogecoin above 0.20 cents, they will make a profit. But what if the price drops below the price they bought for that cryptocurrency? You will lose money. This can range from a few dollars to hundreds or thousands of dollars.
Dallas billionaire Mark Cuban does the same when he tweets or mentions this cryptocurrency. In February, Cuban said that Dogecoin has no intrinsic value.
On the positive side, Mark Cuban recently announced that he would like to give a purpose to the use of Dogecoin. Cubans announced that fans can use Dogecoin at the Dallas Mavericks Games. Fans can buy tickets and goods with Dogecoin.
Cubans and Musk have fun with Dogecoin. If they have billions of dollars each, they can do what they want.
In the past, musk was fined by the SEC for tweeting about misleading Tesla investors. He tweeted about taking Tesla privately and the stock price fell. As a result, Musk was forced to step down as Tesla chairman and he and Tesla were each fined $ 20 million.
It doesn’t seem like Musk learned that his tweets can be expensive. This time around, it could cost Dogecoin investors.
See these other articles on cryptocurrencies.