Well, there is good news and there is bad news. The good news is that there have been three instances of stimulus funds being doled out to needy Americans. Thus, if you were struggling due to the coronavirus pandemic, you likely got a little bit of unexpected help in the amount of $3,200 or something similar. The bad news is that if you did not invest that money into Dogecoin, you likely missed out on a big opportunity.
Dogecoin Is Growing Like Mad
While it is not our job to tell people how to invest or what coins they should consider, a new report suggests that had a person invested all three stimulus checks over the past year into Dogecoin, arguably one of the fastest-growing cryptocurrencies on the market, they would have seen that $3,200 jump into the $500,000 range.
We have all heard so much about bitcoin over the past 12 months, and to be fair, the world’s largest and most popular cryptocurrency by market cap has surged by about 500 percent in this time. That is no small feat, and it deserves some praise, but Dogecoin has seemingly left its bigger rival in the dust, jumping by about 20,000 percent during this same period.
Finance blogger Nick Maggiulli explained via Twitter last week:
Putting all three U.S. stimulus checks into Dogecoin now exceeds $500,000.
By comparison, if you had invested all your stimulus funds into bitcoin – which is likely what people did in the beginning – the funds would have only shot up to around $15,000 by now. This message was echoed by Jason Deane, a bitcoin analyst with Quantum Economics, who claimed in a recent interview:
While there are several Twitter accounts regularly tracking what would have happened if you had put your stimulus money into bitcoin, there were, until now, no Dogecoin equivalents, and for good reason. Dogecoin has never been positioned as a serious currency. It was literally created as a meme, and no serious investors have ever regarded it as such due to the enormous risk factors associated with a small-cap currency that has not seen any development since 2019. However, such is the power of markets, memes and high profile (albeit tongue-in-cheek) supporters. It is now possible that Dogecoin may have as much longevity as bitcoin, just for entirely different reasons.
Don’t Get Too Caught Up
While the numbers look good, figures such as Glen Goodman – author of “The Crypto Trader” is telling people that crypto remains risky, and they should only invest money they can “afford” to lose. He says:
We are clearly now in the mania phase of the crypto bull market. Friends who have never invested in their lives are now asking me how to buy scam coins through obscure ‘exchanges’ that have sprung up overnight.