Dogecoin, the meme-based cryptocurrency which started as a joke has soared to an all-time high price of 69 cents Wednesday morning. The digital currency has gained a thrilling 13,000% on a year-to-date basis. But how much would you have earned if you invested $1,000 at the beginning of this year?
The cryptocurrency has been gaining most of its value thanks to the 2nd richest man in the world, Elon Musk the CEO of Tesla (NASDAQ: TSLA). Musk is considered an advocate of the meme-based digital token.
He even asked Coinbase crypto exchange to list Dogecoin on its exchange platform. Consequently, the consistent tweets from Musk who has over 52 million followers on Twitter have helped push Dogecoin to new all-time highs every time.
Now, if you bought Dogecoin in January 2021, you would have had $121,052 at Wednesday’s high of 69 cents, a gain of more than 12,000%. This is a lot higher than what Bitcoin and Ether saw in recent months.
What if you invested $1,000 in Bitcoin instead of Dogecoin?
For instance, Bitcoin grew 95% while Ether saw a 369% increase since the start of the year. If you had bought $1,000 worth of Bitcoin, it would have been $1,953.88 as of Wednesday. Meanwhile Ether would be worth $4,686.58.
Nonetheless, cryptocurrencies are highly volatile and traders can end up losing all of their money. In the last few days, the Bank of England warned cryptocurrency traders that they might lose all their money. Additionally, several traders warned of a bubble potential of Dogecoin.
“My guess is that [the rally] won’t last, especially for something like dogecoin which was never meant to be a payment system or a store of value,” Adam Zadikoff, chief operating officer at BRD, a popular crypto wallet that boasts more than 7 million users, told CNBC Make It last month. “Yes, you can make a quick buck if you time it right. But timing the market is a terrible thing to try to do. It does not work.”
“You see the power in social media to move people to do something en masse,” Zadikoff says of dogecoin. “This is the flash-in-a-pan thing that people are getting behind right now.”