The bitcoin and cryptocurrency craze is really back, and celebrities are jumping on the cryptocurrency cart with the same dedication they did in the heady days of 2017.

While the price of Bitcoin has risen by around 500% since that time last year, smaller cryptocurrencies far outperform Bitcoin.

Dogecoin, the meme-based cryptocurrency originally created as a hoax, is leading the way and has seen a 20,000% increase in the past 12 months. Analysis found that three stimulus checks worth just over $ 3,000 would now be worth a look at $ 500,000 if used to purchase Dogecoin.

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“Putting all three US stimulus checks in Dogecoin now tops $ 500,000,” personal finance blogger Nick Maggiulli said on Twitter this week. For comparison: if recipients of stimulus checks had put their money in Bitcoin, it would be worth around $ 15,000.

“While there are several Twitter accounts that regularly track what would have happened if you had put your stimulus money into Bitcoin, there haven’t been any Dogecoin equivalents – and for good reason,” said the Bitcoin analyst at Quantum Economics. Jason Deane, by telegram.

“Dogecoin has never been positioned as a legitimate currency – it was literally created as a meme – and no serious investor has ever viewed it as such, as there are tremendous risk factors associated with a small-cap currency that hasn’t moved on since 2019 however, the power of markets, memes and high profile (if ironic) followers. It is now possible that many Dogecoin will be as long-lived as Bitcoin – just for very different reasons. “

This week, a report from Galaxy Digital Research found Dogecoin had “remarkably strong fundamentals” – warning Dogecoin “should not be ignored”.

In March, a poll found that around 10% of stimulus-check funds – nearly $ 40 billion of the $ 380 billion in stimulus-check direct deposits – were used to buy bitcoin and stocks, with recipients of Stimulus checks Bitcoin preferred.

Dogecoin price has skyrocketed since traders and investors started pouring cash into it in January this year. This was promoted by retailers who have enthusiastically embraced cryptocurrency trading through Robinhood, a commission-free trading app.

Robinhood, which added support for Bitcoin and a handful of cryptocurrencies, including Dogecoin, in February, came under the weight of Dogecoin deals for the second time in a few weeks this week when Tesla billionaire and Dogecoin supporter Elon Musk entered the market the height went up in a frenzy ahead of his closely watched performance on Saturday night Live that weekend. Meanwhile, market data provider TradingView has reported that its Dogecoin page views have increased by around 350% in the past few weeks.

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Coinbase

However, in the midst of Bitcoin, Dogecoin and a greater price craze in cryptocurrencies, many are calling for calm and warning people not to speculate with money they cannot afford to lose.

“We are clearly in the mania phase of the crypto bull market now,” said Glen Goodman, a market trading veteran and author of The Crypto Trader.

“Friends who have never invested in their lives are now asking me how I can buy scam coins through obscure ‘exchanges’ that came about overnight. A friend’s 90-year-old uncle only gave her a piece of money under the Condition that they use it to buy Bitcoin. These are the wild times. Enjoy them while they last and, for God’s sake, only invest what you can afford to lose. “