The cryptocurrency market has always been a volatile one, and it is currently trying to get back into the swing of things after some negative sentiments across the obard the past few weeks. As prices for the majority of the crypto tokens dip, some investors think it is the best time to purchase some crypto coins, like Dogecoin. However, experts warned against purchasing Dogecoin and different cryptocurrencies in general.
Volatility in the Cryptocurrency Market
Currently, things look optimistic for investors as Bitcoin and Ethereum are climbing to really impressive gains, per Forbes. Bitcoin was able to reach a high of $43,000, the highest price for BTC since mid-May. Ethereum was also able to get a boost to $3,000 per token.
Currently, the crypto market has added $250 billion over the last seven days and is now nearing $1.7 trillion.
3/ This definition is so broad, it could apply to nearly every economic actor in the US crypto industry, if read literally.— Jake Chervinsky (@jchervinsky) July 30, 2021
That includes PoW miners & PoS validators, since "providing a service to effectuate transfers of digital assets for consideration" seems to fit both.
Although things look okay and back on track for investors, traders are starting to get nervous as a $55 billion bipartisan infrastructure bill is currently making its way through the U.S. legislature. This includes a provision to raise $28 billion from crypto investors that has some people believing it could "kill" the industry.
This bill proposes taxing Bitcoin and cryptocurrency profits to fund American infrastructure investments. The definition of a broker in this bill is being widened to the extent that crypto exchanges and wallet providers need to collect more information about their users than they usually do, stripping away the appeal of crypto being anonymous.
The documents is proposing a clearer broker-to-broker reporting of digital assets.
Atty. Jake Chervinsky took to Twitter to express his thoughts on the matter, though of course, his tweets are not legal or financial advice. He believes that the provision may do more harm than good to U.S. interests. He agreed that things are moving fast which can feel scary, but he does want everyone to calm down and not panic as the provision is not final yet and can still be changed.
8/ This sounds insane, but it really might happen.— Jake Chervinsky (@jchervinsky) July 30, 2021
Most crypto legislation goes nowhere, so it's easy to ignore. Not this time.
This provision is part of the bipartisan & otherwise popular infrastructure bill, which is moving quickly through Congress & is highly likely to pass.
Dogecoin Price Prediction: Doge Is a Gamble
According to Kevin O'Leary, chairman of O'Shares ETFs, investor in the show "Shark Tank" and the new "Money Court" judge, he has no plans on making the meme coin a part of his portfolio, said CNBC. O'Leary owns BTC and ETH, but he does not participate "in that kind of thing" referring to Dogecoing. He stated how he does not understand why anybody would.
To the business mogul, DOGE has no inherent value other than what other people want to do as they speculate. He likens it to going to Las Vegas and betting your money on red or black.
21/ Things are moving fast, which can feel scary.— Jake Chervinsky (@jchervinsky) July 30, 2021
But as it was with FinCEN's proposed rule, it's been amazing to see the entire industry come together this week to fight against this. We really do have some of the best & brightest on our side.
Stay tuned for updates.
O'Leary shared how his team has done a "deep dive" into the cryptocurrency market. They see a value in certain parts of the market and even mentioned how 10 percent of his operating company's holding are made up of digital tokens like USD C, BTC and ETH.
Dogecoin lacks the scarcity of Bitcoin as it operates on an unlimited amount of the coin, and it also lacks the security of Bitcoin.
Experts are warning investors to be cautious of investing in meme coins and altcoins as you may risk losing nearly all the money you put in. Only buy as much as you can afford to lose.