Dogecoin Price Prediction: Senator Warns Potential Danger of Meme Coin for 'Regular People'

Dogecoin Price Prediction: Lawmaker Warns Potential Danger of Meme Coin for 'Regular People'
The latest Dogecoin price predictio is coming straight out of a U.S. Senator's lips. Sen. Elizabeth Warren warned that the meme coin presents significant problems to most regular people. Photo : Executium/Unsplash

The latest Dogecoin price prediction is coming straight out of a U.S. Senator's lips. Sen. Elizabeth Warren warned that the meme coin presents significant problems to most regular people.

Federal regulators and lawmakers are currently monitoring the risks, and this turn of events might directly affect the Dogecoin value in the market.

Dogecoin remains a hot topic among investors in the industry. However, the recent growth of cryptos has put the meme coin under the microscope, with lawmakers and the government being more involved.

Sen. Warren, in particular, took a strong stand against the cryptocurrency during the congressional hearing for the Senate Banking, Housing, and Urban Affairs Committee's Subcommittee on Economic Policy on Wednesday.

Senator Warns Potential Danger of Meme Coin

In a report from Masslive, excerpts from the discussions between Sen. Warren and professional consultants was recored. 

Warren said that the cryptocurrency Dogecoin presents four significant problems: fluctuating value, investment issues, the cost to environments, and illegal activity. Warren summarized that Dogecoin creates an opportunity to scam investors, assist criminals and worsen the climate crisis.

Dogecoin has one of the most unpredictable market values today. In these last two months, the meme coin rose nearly ten-fold its base value. However, just as quickly, it dropped under 60 percent. It is improtant to note that the same pattern could repeat for the meme coin at any time.

While the potential sounds appealing, this market trend best works for speculators and fly-by-night investors. Regular people, who are looking for a stable source of income and use the money regularly for day-to-day spending, would find Dogecoin a very risky investment.

Lev Menand--a Columbia Law School lecturer--said that unlike traditional banking systems, the cryptocurrency markets are "rife with consumer abuses." Cryptocurrency markets do not offer financial regulations and customer protection in their services. This, unfortunately, opens up risks where players can manipulate price values, leaving ordinary investors to pay a high price.

Lastly, the lack of regulations opens up the potential for criminal exploitation of cryptocurrencies in general. Warren said that online theft, drug trafficking, ransom attacks, and other similar illegal activities are easier and often paid through cryptocurrencies.

Warren concluded with a statement that the threats of cryptocurrencies such as Dogecoin won't go away. Instead, the administrative section of the government should confront these problems head-on.

Read Also: Bitcoin Price Prediction: Twitter Hints Major Move That Will Boost BTC Value

Dogecoin Price Prediction

The Washington Post reported that the Biden Administration, lawmakers, and central bankers are all wrestling with the challenges posed by cryptocurrency.

The White House briefed their staff members on the Treasury Department about the risks mentioned above. The Office of the Comptroller of the Currency and Consumer Financial Protection Bureau (CFPB) has also been warned.

Currently, these offices are investigating the risk "gaps" for Dogecoin and cryptocurrency markets. Future regulations might be imposed, including a tax charge on bigger transactions.

As it stands, federal regulators are developing guardrails around the cryptocurrency market while still aiming for a situation where investors could "dogecoin to their heart's content."

While security risks continue to exist, Dogecoin remains an active cryptocurrency. However, keep in mind that its value, and overall existence in the U.S., might soon change when the lawmakers have finished with their discussions.

Related Article: Dogecoin Price Prediction: Expert Issues Warning About Meme Coin Despite Potential to Hit $1

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