Among the many supporters of cryptocurrency, no one stands out more than Elon Musk. Musk’s fascination with the crypto market and blockchain technology has been on full display in recent years, and he’s not shy about throwing his considerable influence behind his favorite digital currency: Dogecoin.
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So, what if you had invested $1,000 in what was then largely considered a “meme coin” when Musk first tweeted about it in April 2019? Keep reading for a look at Dogecoin, Musk’s involvement with the surprisingly popular crypto, and what $1,000 in Dogecoin would be worth today.
Quick Take: What is Dogecoin (DOGE)?
Dogecoin’s journey from a goofy, internet culture-laden “joke currency” to a notable player in the crypto world has been remarkable—and perhaps a little disturbing. The coin, which took its name and logo from the iconic Doge meme featuring a Shiba Inu dog, started as more of a fun initiative than a serious investment opportunity. Here are some key takeaways:
- When Musk began championing it in 2019, his tweets and comments about Dogecoin brought it to people’s attention for the first time and gave it credibility that it had not previously enjoyed.
- The spotlight resulted in a significant increase in the value and profile of Dogecoin. This volatility, common to many cryptocurrencies, makes investing in IT riskier than traditional investments, but potentially more profitable.
- This is a testament to the resiliency of Dogecoin and the power of social media influence. Despite these challenges, it is holding its own in the competitive and fast-paced crypto world.
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Would Dogecoin have been a good investment 6 years ago?
Six years ago, when Dogecoin was still ignored by the wider investing audience, a $1,000 investment might have seemed like a bold gamble – perhaps even a waste of money. Being worth less than a penny, Dogecoin didn’t offer much in the way of financial opportunities. The coin was largely seen as a light-hearted novelty, a playful footnote in the larger blockchain narrative.
If you took a leap of faith and invested that amount in Dogecoin, you would have acquired a fairly significant number of Dogecoin “tokens” due to its low value. The community around Dogecoin, while enthusiastic, was still relatively small. And with its bemused Shiba Inu face icon and meme origins, it was all too easy for “serious investors” to dismiss it as less than comic relief in the high-stakes world of cryptocurrency investments.
dogecoin price history
Dogecoin’s journey over the past six years reveals a fascinating story of a digital currency punching far above its weight. The value of the coin has increased significantly, with peaks that reflect the power of social media and high-profile figures like Musk can bring to bear on investments, no matter how foolish they may be.
His tweets and nods of approval have often ignited frenzied buying chants among investors, leading to sharp upticks in the value of Dogecoin.
However, like many of its cryptocurrency peers, Dogecoin’s ride has not been smooth. The coin has shown a penchant for volatility, with its value sometimes swinging wildly on a day-to-day basis. But Dogecoin is not saved yet; It has flourished. Investors drawn to its “underdog” story and potential for high returns have begun to appreciate the opportunity that has contributed to Dogecoin’s remarkable growth.
What would have invested $1,000 in Dogecoin 6 years ago?
If you had invested $1,000 in Dogecoin six years ago, you would have ended up with about 400,000 Dogecoins ($391,849). At the time of Musk’s first tweet mentioning the cryptocurrency, a single Dogecoin was trading at $0.002552.
Those 391,849 Dogecoins will have ballooned in value from your initial $1,000 stake to their current trading price by January 24, 2025. These returns are a testament to the extraordinary growth that Dogecoin has undergone.
The story of Dogecoin is over, and its future trajectory is as unpredictable as ever. As with all cryptocurrencies, Dogecoin is subject to the unpredictability of market forces, investor speculation, and technological and regulatory changes.
Investors would do well to remember that while cryptocurrency has the potential for high returns, it also typically comes with a lot of risk and volatility. Dogecoin is no exception.
Christopher Kane contributed reporting to this article.
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This article originally appeared on gobankingrates.com: Elon Musk’s Favorite Crypto: How Much You’d Have If You Invested $1k 6 Years Ago
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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