When people have money, their words are not always advice to you.
W.When billionaires use social media, be careful not to follow their advice verbatim. Her advice could broke you before you ever know what happened.
If you’ve been following cryptocurrencies for a while, Elon Musk and Mark Cuban indirectly advised people to invest in Dogecoin. This will come back to hurt a lot of people who have no idea what they are doing.
Mark Cuban, a billionaire in Dallas, Texas, and Elon Musk, a transplant in Austin, Texas, tweeted their support for cryptocurrencies specifically for Dogecoin.
Dogecoin is easy for anyone to buy and invest or trade.
These days it’s easy to download an app like Robinhood and start trading Dogecoin right away.
When Dogecoin was trading for less than a dime, Dogecoin was a joke because it was a dog’s meme.
Two software engineers created Dogecoin on December 6, 2013 as a joke.
Billy Markus, an IBM programmer from Portland, Oregon, found Jackson Palmer, who worked for Adobe (ADBE). Palmer bought the dogecoin.com domain. The “doge” meme was popular on the internet at the time. Markus wanted to make his cryptocurrency different from Bitcoin.
The dog on Dogecoin is a Japanese Shiba Inu dog breed.
Bitcoin has a fixed stash of 21 million bitcoins, with Dogecoin having 129 million coins and more can be created every year. Cryptocurrencies are valued based on supply and demand. In general, the less offer is available or the scarcer a cryptocurrency is, the higher the price. But the more supply available for a cryptocurrency, the lower the price of the coin. There are more based on cryptocurrency usage, but this is how it generally works.
When Elon Musk tweets about Dogecoin, millions of his followers see it. Musk is over 51 million Twitter followers. Some of his fans hope that Dogecoin will hit at least $ 1. This reminds me of the GameStop trading that WallStreet Bets operated and many other people rallying to trade with them.
The danger is that some people have never invested before or have limited experience investing. What happens if one day the Dogecoin whales decide to withdraw? As a result, the price drops very quickly.
If a person who has invested in Dogecoin is not careful, they can lose a lot of money.
I’ve seen some people share screenshots of them buying Dogecoin when the price was over 0.20 cents. If they sell Dogecoin above 0.20 cents, they will make a profit. But what if the price drops below the price they bought for that cryptocurrency? You will lose money. This can range from a few dollars to hundreds or thousands of dollars.
Dallas billionaire Mark Cuban does the same when he tweets or mentions this cryptocurrency. In February, Cubans said that Dogecoin has no intrinsic value.
On the positive side, Mark Cuban recently announced that it would give a purpose to the use of Dogecoin. Cuban announced fans can use Dogecoin on Dallas Mavericks games. Fans can buy tickets and goods with Dogecoin.
Cubans and Musk have fun with Dogecoin. If they have billions of dollars each, they can do what they want.
In the past, Musk has been fined by the SEC for creating tweets about misleading Tesla investors. He tweeted about taking Tesla privately and the stock price fell. As a result, Musk was forced to step down as Tesla chairman and he and Tesla were each fined $ 20 million.
It doesn’t seem like Musk learned that his tweets can be expensive. This time around, it could cost Dogecoin investors.
See these other articles on cryptocurrencies.