Cryptocurrency Dogecoin Hits Record $2 Billion Market Cap
The massive run-up of bitcoin over the last year or so—five years in the longer-term—has left investors and speculators alike wondering one common thought: “Where’s the next bitcoin?” While several cryptocurrencies have made their cases (Ripple is one common thought, as is Nexus and even long-time market mainstays Litecoin and Ethereum), one that might not have been such a frequent though is Dogecoin, a coin that was essentially set up as a big joke. That big joke took on a life of its own, however, and the crowd has swollen Dogecoin’s market value to a record $2 billion.
Originally, Dogecoin was established almost as a parody of bitcoin, built around the meme that, on the internet, everyone knows you’re a dog. It has no connections to larger industries or business elements, it’s just a coin that is for reasons best described as, well, reasons. That’s left its founder, Jackson Palmer, concerned about what he describes as “market froth.”
This isn’t necessarily a bad concern, either; most of the cryptocurrency market is merrily sliding around like a tap dance recital at a hockey rink. Ripple lost 30 percent in almost 24 hours, but still offers a market cap around $80 billion. Even vaunted bitcoin lost seven percent in a day. Seagate shares were up 16 percent in midday trading, though that dropped to 6.5 percent up as word emerged that the company had a major stockpile of Ripple on hand. CNBC couldn’t confirm or deny either way.
There’s a term in the cryptocurrency markets known as HODL, an acronym which translated means Hold On for Dear Life. It refers to what should be the most basic practice of all; hanging on to your various cryptocurrencies at all costs, waiting out the various swings of the market to achieve profitability. Of course, some here might think HODL is a recipe for disaster; why hold on to everything forever as opposed to taking back your initial investment and playing with “house money”?
Whether you HODL or dump on the pumps, the idea that caution is called for isn’t out of line. And that’s me speaking as a guy who owns a few cryptocurrencies himself. Whether it’s bitcoin, Dogecoin, HODLcoin—yes, there’s a HODLcoin—or any other, just don’t risk more than you can afford to lose.