Despite concern about the future utility and staying power of Dogecoin (CCC:DOGE-USD), it continues to make headway.
If nothing else, DOGE continues making itself more publicly known. Institutions are making greater mention of it and household names are partnering with it.
Utility will be the defining feature that determines whether Dogecoin has staying power. But before utility is or isn’t created for Dogecoin, greater mentions like those from institutions and household names are going to keep it relevant and fuel its price movement short-term.
Institutional News on Dogecoin, Cryptos
Cryptocurrency is in direct competition with centralized finance. Thus, it is newsworthy when central bank officials make public remarks on a given cryptocurrency, or even the space at large.
That’s why recent remarks made by Tony Richards, the head of payments policy with Reserve Bank of Australia, are worth paying attention to. Richards broadly implied that cryptocurrency as payment is still an unlikely threat to fiat money, stating: “I can’t see shops posting their prices in cryptocurrencies or companies doing their annual reports in cryptocurrencies or lots of people wanting to get paid in cryptocurrencies.”
He then went on to directly question such assertions about Dogecoin directly, wondering whether one report that it was held by 5% of all Australians was true. At the same time, he also admits that he has had a crypto wallet since 2014, as part of his job is to understand new payment methods.
There is plenty of room for speculation regarding Richards’ comments. The most fervent crypto speculators would interpret his remarks as thinly veiled fear. More skeptical readers are bound to give credence to his thoughts about crypto’s future.
Wherever your opinion personally falls, one thing remains true: Central bank commentary on Dogecoin serves to bring it further into the public eye and the mainstream. The more institutions comment on Dogecoin, the better. As Dogecoin continues to build utility behind the scenes there is no such thing as bad publicity.
Teaming With Household Names
One of the persistent knocks against DOGE, and more broadly, crypto, is a lack of utility. Consumers certainly cannot use crypto as widely as fiat currency.
That’s why acceptance of crypto in our daily lives is vitally important to its long-term success. For Dogecoin, small steps like Burger King’s recent partnership with Robinhood (NASDAQ:HOOD) move the dial closer toward such a reality.
In particular, 2 million DOGE are being given away to the winner. At current prices, that’s a prize worth approximately $450,000. Burger King app users who are part of its Royal Perks loyalty program are eligible to win the prize after spending $5 via the app. They then receive a code which they can check through the Robinhood app.
Despite the fact that both central banks and fast food outlets are talking about Dogecoin, it remains relatively flat since late June.
Price Trends Indicate Longer Story
DOGE has traded in a range between 18 cents and 34 cents since late June. What this seems to suggest is that we’re essentially playing a guessing game as it relates to its prices; no surprise there, right?
It also indicates that until something major happens, that’s a reasonable range to expect for traders. That is either good or bad depending upon your perspective.
Dogecoin has the potential to double any day. That’s great if you can time it. Traders continue to do exactly that. This reinforces the idea that, yes, there’s money to be made from crypto.
However, it does little to grant Dogecoin any type of long-term legitimacy as an investment vehicle.
What to Do About Dogecoin
DOGE is the playground of the highly risk-tolerant investors who care little about longer-term utility. That’s fine in and of itself. There’s little to be done in order to make money rather than attempt to time the market around minor news events.
Take DOGE as that for now. But pay attention to increasing mentions from central banks and retail outlets. Both trading and long-term viability will continue to make its story a relevant one.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.