On March 6, billionaire investor Mark Cuban said on Twitter that he could see a way for the price of meme cryptocurrency Dogecoin ($DOGE) to reach $1; now, one financial research firm says it is even possible for the price to reach $10.
Cuban is the majority owner of the professional basketball team Dallas Mavericks, as well as one of the “sharks” on the highly popular reality show “Shark Tank” (which is aired on the ABC television network).
Throughout 2021, two billionaires — Elon Musk and Mark Cuban — have helped the Dogecoin price rise over 1100% (from $0.0047 to $0.0568) and its market cap reach $7.3 billion (making DOGE currently the 17th most valuable cryptoasset by market cap) by talking, on numerous occasions, about why they like this cryptoasset.
On February 8, revealed what he had said when a Forbes reported had recently asked him about Dogecoin and whether its popularity with retail investors is a bad thing.
On March 4, crypto payment processor BitPay announced that it had started allowing merchants to accept Dogecoin for payments, and that the Dallas Mavericks would be the first to accept Dogecoin.
Two days later, Cuban delighted Dogecoin holders everywhere when he said that his NBA team had had more than 20,000 orders paid for with Dogecoin and that if they managed to sell another 6.55 billion DOGE worth of merchandise, the Dogecoin price could reach $1.
The report started by saying:
“Even without inflationary changes, the price could still hit $1. The cryptocurrency has 130 billion coins outstanding; a $1 price-per-coin will still leave it 55% the size of Ethereum…, the world’s second-largest crypto. And because only the marginal trade matters in asset pricing, even a few major account owners could theoretically send values soaring.“
It then talked about inflation:
“Inflation will also become a minor issue over time – the outcome of a flat reward divided by a growing capital base. By 2040, Dogecoin’s inflation rate would have dropped to just 2.4%, or roughly the same as U.S. dollars today. By 2060, it would be 1.6%, making it deflationary relative to dollars... However, sending Dogecoin to $10 will require an even more significant change: a switch to a deflationary system sooner than 2060.“
The report then went to explain what was needed to allow the possibility of the Dogecoin price reaching $10 one day:
“If investors want to send Dogecoin prices to $10, far more is needed than buying the coin and posting tweets. It needs a benefactor to help fund improvements.
“Already, the coin has some big-name backers. On Thursday, Elon Musk promised to literally send the coin to the moon on a SpaceX rocket. He could make an even bigger impact by starting a “Dogecoin Foundation” to fund development and promote adoption among startups and enterprises. So far he’s avoided that, blaming the “Dogecoin Whale“. Regular investors can help by contributing, rather than hounding developers.
“Dogecoin to $10 is more than a dream – it’s a possibility that’s just around the corner if the community one day bands together.“
The views and opinions expressed by the author, or the people in any of the embedded videos, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.