‘Doge is my savings account’: This 33-year-old is no longer a ‘dogecoin millionaire’–but he’s still buying the dips. GlauberContessoto, 33, invested over $250,000 in dogecoin in February.
The top cryptocurrencies by market value, including bitcoin and ether, are plunging on Tuesday amid a sell-off. Among those is meme-inspired cryptocurrency dogecoin, which is down about 77% since its all-time high of nearly 74 cents in May.
But investor GlauberContessoto, whose dogecoin holdings previously surpassed a value of $1 million, isn’t worried.
“You just gotta zoom out and chill,” Contessoto, 33, told CNBC Make It. Though he isn’t a financial expert, he’s optimistic that dogecoin has already hit bottom. The coin hit 16 cents Tuesday morning before inching up to 17 cents.
Between his savings and borrowed funds, Contessoto said, he invested over $250,000 in dogecoin on Feb. 5 when it was priced at about 4.5 cents. About two months later, on April 15, he said, he became a dogecoin millionaire on paper.
Since then, Contessoto has refused to sell, despite dogecoin’s ups and downs. Even in May, when the value of his holdings surpassed $2 million, he still didn’t budge. Now, with dogecoin trading around 17 cents, he continues to buy the dip.
“I can’t pass up a good bargain,” Contessoto said. Last week, he bought over $5,300 worth of dogecoin when it was around 17 cents, he said.
“Doge is my savings account,” he said.
As of around 2:50 p.m. EST on Tuesday, his dogecoin holdings were worth $700,217.09.
Nonetheless, Contessoto’s plan remains the same: “Once I hit $10 million, then I’ll take out 10%.”
What is Dogecoin?
Dogecoin is a cryptocurrency created by software engineers Billy Markus and Jackson Palmer, who decided to create a payment system as a joke, making fun of the wild speculation in cryptocurrencies at the time. Despite its satirical nature, some consider it a legitimate investment prospect. Dogecoin features the face of the ShibaInu dog from the “Doge” meme as its logo and namesake. It was introduced on December 6, 2013, and quickly developed its own online community, reaching a market capitalization of over $85 billion on May 5, 2021.
Dogecoin.com promotes the currency as the “fun and friendly internet currency”, referencing its origins as a joke.
Dogecoin started with a supply limit of 100 billion coins, which would have been far more coins than the top digital currencies were then allowing. By mid-2015 the 100 billionth Dogecoin had been mined with an additional 5 billion coins put into circulation every year thereafter. Although there is no theoretical supply limit, at this rate, the number of Dogecoins put into circulation will only double in 20 years (the next doubling will occur in the year 2075). There is no implemented hard cap on the total supply of Dogecoins. Nonetheless, in February 2014, Dogecoin founder Jackson Palmer announced that the limit would be removed in an effort to create a consistent reduction of its inflation rate over time. In other words, the inflation rate improves over time starting at 5% in 2015 to less than 4% by 2019, 3% by 2027, and 2% by 2035.
2014 Winter Olympics
The Dogecoin community and foundation have encouraged fundraising for charities and other notable causes. On January 19, 2014, a fundraiser was established by the Dogecoin community to raise $50,000 for the Jamaican Bobsled Team, which had qualified for, but could not afford to go to, the Sochi Winter Olympics. By the second day, $36,000 worth of Dogecoin was donated and the Dogecoin to bitcoin exchange rate rose by 50%. The Dogecoin community also raised funds for a second Sochi athlete, Shiva Keshavan.
Inspired by the Winter Olympics fundraiser and smaller charity fundraising successes, the Dogecoin Foundation, led by Eric Nakagawa, began collecting donations to build a well in the Tana river basin in Kenya in cooperation with Charity: Water. They set out to raise a total of 40,000,000 ($30,000 at the time) Dogecoin before World Water Day (March 22). The campaign succeeded, collecting donations from more than 4,000 donors, including one anonymous benefactor who donated 14,000,000 Dogecoin (approx. $11,000).
On March 25, 2014, the Dogecoin community successfully raised 67.8 million Dogecoins (around $55,000 at the time) in an effort to sponsor NASCAR Sprint Cup Series driver Josh Wise. Nicknamed the “Moonrocket”, the №98 car featured a Dogecoin/Reddit-sponsored paint scheme and was driven by Wise at the Aaron’s 499 at Talladega Superspeedway. Wise and the car were featured for nearly a minute, during which the race commentators discussed Dogecoin and the crowdfunding effort, while finishing twentieth and narrowly avoiding multiple wrecks. On May 16, Wise won a spot at the Sprint All-Star Race through an online fan vote beating household name Danica Patrick, largely due to the efforts of the DogecoinReddit community. He finished the race in fifteenth, the last car running. The following race in the Coca-Cola 600, Wise debuted a Dogecoin/Reddit.com helmet. Wise later announced he would run the car again at the Toyota/Save Mart 350 and the GEICO 500 as a thank-you gift to the community. He finished twenty-eighth in the race due in part to a refueling issue; he was in twelfth place after a gas-and-go pit stop, but the gas can did not engage long enough, resulting in a second pit stop that took him towards the back of the pack. Eutechnyx, developer of the NASCAR ’14 video game, added the Dogecoin car as a drivable car in a DLC pack.
On March 2, 2021, NASCAR Xfinity Series team B. J. McLeod Motorsports announced that Dogecoin would be sponsoring the №99 car in the Alsco Uniforms 300 at Las Vegas alongside Springrates; Stefan Parsons drove the car to a 36th-place finish as fuel line issues prevented him from completing the race. Coincidentally, his father Phil was the owner of the team that fielded the original Dogecoin-sponsored car in 2014.
While the price of Dogecoin is very volatile, this volatility has its benefits. It allows cryptocurrency day-traders, those being traders who enter and exit a trade within one day, to trade off this volatility and benefit from the extreme swings in Dogecoin’s value.
Additionally, while the cryptocurrency may have begun as a joke, it certainly isn’t anymore. In May 2021, it was the fourth-largest cryptocurrency in the world, with a market capitalization of $78 billion. As of August 22, 2021, it has since fallen to seventh place, with a market cap of $58.5 billion, behind Bitcoin, Etherum, Cardano, Binance Coin, Tether, and XRP, respectively.
One significant positive of Dogecoin is its relatively small energy use for transactions in comparison to other cryptocurrencies (0.12 kilowatt-hours per transaction (kWh). In comparison, Bitcoin uses 707.6 kWh and Ethereum uses 62.56 kWh.
Elon Musk and Dogecoin
Elon Musk frequently uses his Twitter platform to express his views on Dogecoin, which has led some to claim that his actions amount to market manipulation because the price of Dogecoin frequently experiences price movements shortly after Dogecoin-related tweets released by Elon Musk. Nevertheless, because cryptocurrencies aren’t regulated like stocks, he isn’t technically doing anything illegal.
According to CNN Business, Musk’s first Dogecoin-related tweet occurred on the 20th of December 2020. Musk tweeted ‘One Word: Doge’. Shortly after, the value of Dogecoin rose by 20%.
This was followed by a series of Dogecoin-related tweets by Musk in early February 2021 captioned ‘Dogecoin is the people’s crypto’ and ‘no highs, no lows, only Doge’. After these tweets, the value of Dogecoin rose by roughly 40%.
As reported by CNN, the price of Dogecoin rose by more than 100% on the 15th of April 2021 after Musk tweeted an image of Joan Miró’s ‘Dog Barking at the Moon’ painting captioned ‘Doge Barking at the Moon’.
The Dogecoin Foundation is a not-for-profit organisation established to provide:
- Support for the Dogecoin crypto-currency through development and advocacy.
- Dogecoin trademark defense to prevent abuse and fraud.
- A roadmap and governance for the future of Dogecoin.
The Foundation was established by members of the Dogecoin team in 2014 to provide governance and support for the Dogecoin project. In 2021 the Foundation has been re-invigorated by members of the original core team along with fresh faces and new seasoned advisors ready to grow Dogecoin for the decade ahead.
You can read about the Foundation’s guiding principles in The Dogecoin Manifesto.
The Dogecoin Foundation Board meets monthly to discuss issues relating to the Dogecoin project.
We are Dogecoin, the accidental crypto-
movement that makes people smile.
We are developing a currency for the people,
and we strive to do only good everyday.
Through this work we have come to value:
Being useful, we value utility over technical brilliance.
Being personable, we value individuals and interactions over profit-driven economics.
Being welcoming, we value collaboration and trust over competition and exclusivity.
Being reliable, we value working solutions over speed of delivery.
That is, while there is value in the items on
the right, we value the items on the left more.
– Billy Markus
– Gary Lachance
– Jens Wiechers
– Max Keller
– Ross Nicoll
– Timothy Stebbing
So by this all information it shows dogecoin future, you can decide if you can see bright future 1$ or easy $10 in near future!