Each Dogecoin (CRYPTO: DOGE) and the Official Trump meme coin, with the ticker TRUMP, are among the many most well-known meme performs on the market in the meanwhile. However, opposite to what you will have heard, not all meme cash are the identical when it comes to their steadiness of threat to reward.
And, on this explicit matchup, there’s loads to focus on. So let’s dive in.
Dogecoin is the meme coin that began its complete asset class inside cryptocurrency, and a few years later it is nonetheless alive and kicking, with an impressively giant market cap of round $47 billion.
By way of the funding thesis for getting Dogecoin, this chart does a greater job of explaining it than phrases alone:
Dogecoin Price information by YCharts.
As you possibly can see, on common Dogecoin shares a excessive diploma of correlation with the motion of Bitcoin. That means if Bitcoin retains its behavior of surging and ebbing in four-year cycles, in step with the tough timing of the halving of its mining reward, there’s all the time going to be further liquidity to circulate from Bitcoin to Dogecoin.
Put extra merely, if Bitcoin continues to make buyers richer in particular durations of time, among the further cash they make finally ends up getting spent on Dogecoin on common. That is smart as a result of buyers can in all probability discover a larger return throughout a speculative growth in Dogecoin than in Bitcoin, because it tends to be extra risky.
Then there’s the opposite component of the Dogecoin thesis. As a meme, Dogecoin has continued to garner a major quantity of consideration each few years for greater than a decade now. Traders preserve coming again in anticipation of the subsequent run-up, and the meme itself is broadly recognizable and straightforward to riff on.
Moreover, the coin could at some point be included in exchange-traded funds (ETFs) that give it more exposure to liquidity from the normal monetary markets. However these ETFs aren’t authorized but.
Does that imply you can purchase it? No, not less than not till you’ve got diversified your portfolio with safer investments, and never until you are keen to lose your entire cash.
Sizzling off its launch on Jan. 17, Trump’s meme coin has a market cap of roughly $5 billion in the present day, making it one of many largest meme cash that exists.
Although it does not have the identical classic as Dogecoin, it does have one very clearly highly effective issue driving its value: It bears the title and endorsement of the president of the U.S., and it is the one cryptocurrency with that distinction. Throughout what’s anticipated to be a pro-cryptocurrency administration, having the express assist of the president implies that it’s unlikely for Trump’s coin to go to zero. It might additionally probably catch a serious tailwind if the president’s actions trigger folks to need to purchase his coin. And that dynamic might simply final for the whole four-year time period.
