Tags

, , , ,

By Attorney Carlos Gamino

If you’re like most people, you’ve heard of Dogecoin – but what is it, what does it do (and what is it good for), and will you lose all your money if you invest in it? Here’s a quick run-down on this meme-based cryptocurrency.

What is Dogecoin?

Dogecoin is a cryptocurrency that started out as a meme – a funny photo of a Shiba Inu. As a cryptocurrency, you can’t hold it in your hand; it exists only in the cloud. And as a cryptocurrency, you can only spend it by giving it to people who believe in its feasibility (at least enough to accept it as payment). Though not nearly as many big-money investors take Dogecoin as seriously as its larger, much more valuable counterpart, Bitcoin, it’s steadily gained popularity during the first half of 2021.

What Does Dogecoin Do?

You can spend Dogecoin at a handful of retailers. You can use these digital coins to buy fan swag from the Dallas Mavericks’ online store, on plane tickets from the Latvian airline AirBaltic, and with several smaller websites, restaurants and retailers. You can also sell it to others. As of right now, it doesn’t have much value – but it’s like a stock: You buy it when the price is low and sell it when the price is high to make a profit.

Will You Lose All Your Money if You Invest in Dogecoin?

You may – or may not – lose all your money if you invest in Dogecoin. Again, it’s like a stock, and nobody can predict how it’s going to perform. It could take off and become the next Bitcoin, which trades at over $55,000 per coin, or everyone could jump ship and abandon the idea, leaving you holding the bag. It’s very volatile, with the price sometimes fluctuating by as much as $0.30 per day, so your mileage may vary.

What Do You Think?

Do you own Dogecoin, or are you thinking about buying it? Did you have some and sell it when it was trading over $0.70? I’d love to hear your experience and what you think about this meme-based cryptocurrency, so please share your thoughts on my Twitter feed or Facebook page.

Carlos Gamino