Will Elon Musk’s Dogecoin Support Pay Off Investors? Bitcoin Bulls Ask Investors to Maintain Caution

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by Bhushan Akolkar · 3 min read
Will Elon Musk’s Dogecoin Support Pay Off Investors? Bitcoin Bulls Ask Investors to Maintain Caution
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Popular venture capitalist Nic Carter thinks that Dogecoin doesn’t have any real value apart from being a fun cryptocurrency. Carter doesn’t agree with Musk’s suggestion of HODLing Dogecoin.

Over the last week, the world’s richest man Elon Musk has showered unprecedented support to meme cryptocurrency Dogecoin. The result was DOGE price surged past $0.080 hitting its all-time high and making way to the top-ten list.

With Musk’s relentless support, investors have jumped into the game with some even willing to take the DOGE price to $1. Other popular personalities like Snoop Dogg and Gene Simmons have also extended their support to DOGE. Well, Elon Musk has also gone to the extent of calling Dogecoin the “future currency of earth”. In his recent tweet, Musk also notes that he has bought Dogecoin for his son.

However, we know that the meme cryptocurrency inspired by the Shiba Imu dog breed just started as a joke cryptocurrency. So the question is whether if Dogecoin has any real future or not? Bitcoin bull and popular venture capitalist Nic Carter wants investors to maintain caution at this stage.

He notes that Musk’s enthusiasm for the meme-inspired cryptocurrency is “disconcerting” and calls Dogecoin mainly as the “vehicle of speculation”. Carter, co-founder of Castle Island Ventures and data firm Coin Metrics, told CNBC:

“Unfortunately a lot of retail punters are going to lose money on dogecoin in the long term because there’s really not much there in terms of interesting technology. The only thing it can really do is be zombified and stick around and be an empty shell for people’s expectations and for their entertainment.”

Does Dogecoin Supported by Elon Musk Hold Any Real Purpose?

Nic Carter notes that he was introduced to Dogecoin back in 2013. He states that while it’s “entertaining and fun” at that time, it’s now “sort of an empty husk”. Carter is not the only person who’s keen on HODLing Dogecoin as suggested by Musk. Mike Novogratz, CEO of Galaxy Digital, also holds similar views to Carter and stated that Musk shouldn’t promote it.

Speaking to CNBC’s Squawk Box, Novogratz said:

“Dogecoin reminds me a lot of GameStop. It’s a meme. It was funny for a little bit but now it’s at a market valuation where people are going to lose lots of money in doge. Bitcoin has a real purpose, Etheruem has a real purpose, lots of the stablecoins have a real purpose. Doge is kind of a meme, kind of a joke.”

In his further comment, Carter said that he finds Tesla’s recent BTC purchase as “interesting” and would not advise other firms to follow. “I don’t put my start-ups’ assets in bitcoin and frankly I don’t necessarily think that’s the most prudent approach for a CFO,” he said.

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