Dogecoin was on fire just yesterday. It went up 800 in one day and many people are excited and they want to jump on the dogecoin trade. But, how high can dogecoin actually go, welcome aboard the bitcoin express? Let’s get to it at one point in time Bitcoin was worth five cents. Today it’s worth thirty seven thousand dollars today Dogecoin as I’m making this video is sitting at five cents as well so the obvious question is will dogecoin reach the same price as bitcoin. But, I want to ask a more simple question: can dogecoin reach 10 and right before we get into the math. I do want to clarify that I do own a small amount of Dogecoin two weeks ago. There is to know about Dogecoin and at the end I did say I didn’t own any and I didn’t know if I will own any in the future.
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Doge vs BTC Market Cap
But I changed my mind shortly after that, which I’m very happy that I did. I ended off that video saying that I don’t treat Dogecoin as an investment. But, more as a gamble, something that is fun you never know what’s going to happen. People have made money, people will make money, it goes up and down. It follows whatever’s going on in social media. So, I went ahead and put a small amount in case I lose it. I’m with that. But, the upside is that if it does well it does very well and that’s exactly what happened. I just want to clarify that before we get into this math. So that you can understand these price predictions.
I want you to understand this because it’s going to help you understand if any price prediction you ever hear for even a stock or a cryptocurrency is actually valid. We need to talk about market cap and I know some of you already know what market cap is. But, I also know many of you don’t and I see it in forums that the market cap is the true value of an asset when you look at bitcoin. It is not really worth thirty seven thousand 000 bitcoin is worth 705 billion dollars. This is the market cap when you look at dogecoin it’s not really worth five cents really it’s worth.
How Does Doge Reach $1?
Let’s see over 6.5 billion dollars here. This is the market cap and how do you get to a market cap it’s a simple equation. It is the price per coin times the number of coins in circulation and this gives you the total market cap for bitcoin. Let’s see over here, they’re 18.6 million bitcoins circulating in supply times 37 000. We have a market cap of 705 billion dollars now. If we look at dogecoin there is a circulating supply of 128 billion dogecoin times 5 cents, we get a market cap of 6.5 billion. So, when you look at Dogecoin and you want it to double. It doesn’t really go from 5 cents to 10 cents. Instead it goes from 6.5 billion double that to 13 billion. So, this is how it doubles, so I hope you’re following along and you understand that and when we look at these prices per coin of Dogecoin and Bitcoin in a way it’s kind of a placeholder. Let’s see what happens, if we do the math and reverse the circulating supply.
Let’s say we took bitcoin’s market cap of 705 billion and we divided it by the amount of Dogecoin. Let’s say bitcoin had 128 billion coins instead of 18.5 18.6 million, we would end up having a bitcoin that is five dollars and five cents. The crazy part is that this would not change the value of bitcoin. It would be the same the same exact market cap, but the price per coin would be different. Now let’s do it with Dogecoin. If Dogecoin’s market cap is 6.5 billion divided by the amount of Bitcoins. Let’s say dogecoin only had 18.6. 18.6 million Bitcoin the price of Dogecoin today would be 353.
How Does Doge Reach $10?
But again, it’s not any different, it’s the same value and this is something good for dogecoin. Something that has been going on for it. It will always look cheap. This is good for market psychology even if it goes to 10 cents which is a massive gain. If it goes to 30-40 cents. It will always look cheap even at one dollar on paper. But in reality it’s not that cheap. As we can see this thing is climbing up on coin gecko coin market cap right now, sitting at number 11 so relative to the crypto space. I wouldn’t say it is a cheap coin. But, it looks super cheap now trading at just five cents so knowing what we know now. Let’s see how Doge can first get to just one dollar that would be one dollar per Dogecoin times. 128 Dogecoin circulating supply and that is a 128 billion dollar market cap. Now let’s look if that’s practical or not if we look at Coin Gecko. We can see that bitcoin has a market cap of 705 billion followed by Ethereum at 161 billion a major drop off and then after Ethereum made an even larger drop off of 25 billion for Tether, Polka Dots 16 billion, XRP 13 billion. As we can see a market cap over a hundred billion is very difficult to reach.
Will Doge Hype Continue?
But I’m not going to say it’s impossible. We need to rephrase our questions from if something can happen to what is the probability that it can happen. So, Dogecoin’s probability of going to a market cap above 100 billion. It’s not impossible, but it is unlikely and i’m not saying this video to cause any fud or any bad news. I have Dogecoin. I would love for it to go to a dollar or even more. The reason I’m saying this is because I want you and for myself to always remember that this is more of a fun gamble. I’m going to show you the volatility in just a minute. How it could be very dangerous if you’re treating it as a large investment with your life savings. I hope that dogecoin does reach a dollar. I would love for it to go. But, I’m just saying the probability is low. But, who knows what happens in a crazy insane bull market so we’ll definitely see what happens now to get to 10 this would be 10 times 128 billion dogecoin circulating supply. This is a market cap of 1.2 trillion dollars now this number again i’m gonna say not impossible. But, now it’s really unlikely why because even today bitcoin is not sitting at one trillion dollar market cap. The only way you really get to a market cap of a trillion dollars or more whether we like this or not. This is how it is through large institutional money. Right now institutions are only putting money into bitcoin and a little bit into Ethereum which is why we can see these are the only cryptocurrencies at this moment above 100 billion dollars in market cap. Of course, this can change – you never know what’s going to happen in the future. I mean even what happened yesterday in the world and finance was just. So, crazy so you really never know again. I want to clarify I’m not here to spread any fake news or any fud. I like Dogecoin.
I hope it goes to the moon. I’m a fan of everything going on with Dogecoin. Listen, I look into Dogecoin. I know everything. There is to know about it and at the end of the day. I am not a maximalist in any sense. I would rather make money than be right. I’m enjoying everything that’s going on right now. I love Elon Musk’s tweets when he tweets about Dogecoin. This was the one he sent out yesterday. He’s always coming up with something new and funny so with everything that I just said I just understand that it’s a little bit like a gamble a casino and even yesterday we saw Dogecoin shoot up 800 in one day. It was sitting around here at seven cents just an hour later it dropped all the way down here to 36-37 cents almost a 50 drop in one hour – it came right back up. Then right back down right back up and even from its yesterday’s all-time all-time high or whatever it was of seven cents. We’re already sitting back here now in the four-five cent range. This thing is very volatile.
This article is a transcription of a video made The Bitcoin Express
Original video: https://youtu.be/tgrHxpZblg8