Dogecoin
Dogecoin Returns vs S&P
33.70%
Versus S&P
•
16 minutes ago
33.70%
Versus S&P
•
16 minutes ago
6m High
6m Low
Doge
$0.27
$0.14
S&P 500
60.26
46.10
Doge
S&P 500
Does not follow the Stock Market
Source: DOGE, SPX
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Highlights
Good For
High-risk investments
Time Horizon
Short term to long term
Diversification
Environmentally Friendly
Dogecoin is a popular meme coin created in 2013. Billy Markus and Jackson Palmer, IBM software engineers, created Dogecoin to poke fun at the growing subculture of crypto investors who, at that time, were buying into what seemed to the general public like nothing. Ironically, DOGE took off like wildfire, even though the coin itself has no utility, nor does it give governance rights to owners. Since Doge’s rise to fame, influencers—most notable Elon Musk—have attempted to maintain the coin’s clout by tweeting about it. Palmer, Doge’s co-founder, is openly critical of both Dogecoin and crypto as a whole. However, DOGE has demonstrated some staying power as both a short-term investment for crypto traders and as a long-term hold of value, according to the people who believe more companies will start to use it as currency.
Did you Know
Elon Musk recently tweeted that he’d eat a Happy Meal on TV if McDonalds started to accept DOGE for payments.
The Shiba Inu dog featured in the meme on which Dogecoin is based is a real dog named Kabosu who turned 16 in November 2021.
In true “meme style,” Dogecoin set off a ripple effect of trend-followers and inspired the Dogecoin spinoff coins Shiba Inu, Mini Shiba, and Baby Doge, among others.
Considerations
Billionaire Elon Musk has consistently promoted mainstream Dogecoin use cases and announced in January 2022 that Tesla will accept DOGE payments.
Will reportedly be accepted as payment by AMC Theaters in 2022.
Accepted as payment by the Dallas Mavericks and the Oakland A’s, along with a growing number of crypto companies, hotels, and businesses.
Reasons to Invest
Meme coins are notoriously hard to predict.
With no built-in cap (no limit to the amount that can be minted), DOGE is inflationary.
Celebrity and influencer tweets strongly sway investor sentiment, a turn-off for many.
Drawbacks
How You’re Taxed
Income Tax
Capital Gains
Tax-wise, the IRS treats cryptocurrency like other capital assets. Just like with stocks and bonds, if you sell crypto for a profit or a loss, you’ll need to report it on your taxes and pay capital gains on any profits. Capital gain tax rates depend on your income and the length of time you held onto your assets before selling them. If held for longer than one year, you'll pay a long term capital gains tax rate of 0% to 20%, and if held for one year or less, you'll pay taxes at your normal income tax rate. Consult with a crypto-savvy CPA who can walk you through the tax implications of owning and/or trading crypto.