Cryptocurrency dogecoin, which was initially invented as a joke, has seen wild swings in recent weeks as billionaire Elon Musk used Twitter to spark investors’ interest in the canine-themed token.
The world’s richest person has been a vocal supporter of the cryptocurrency of late, with his comments on Twitter and beyond becoming one of the key factors of dogecoin’s rally. However, his recent statement caused a major sell-off in the token, which is now down 34 percent. Musk said that too much concentration of dogecoin among its major holders is the only “real issue,” and called on them to sell most of their coins.
RT’s Boom talks to Jeffrey Tucker from the American Institute for Economic Research. Tucker says Musk has definitely brought a lot of credibility to the crypto, but there could be another factor behind the rise of dogecoin. The analyst believes that people started buying into dogecoin to show that we live in a new world of “unpredictable private competitive currencies.”
“Who is to say which one is to predominate,” Tucker said. “Maybe we don’t just have to have one world reserve currency, maybe we can have a hundred or a thousand. We can have competitive currencies and dogecoin is part of that.”
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