Dogecoin (DOGE) crashed last Friday, pulling the market with it as a selection of other cryptocurrencies, including Bitcoin and Ethereum, slipped in kind. The three popular currencies have already oscillated across the market, responding to popular feeling and actions of public figures over the last year. They all remain exceptionally volatile, especially when nudged by one man in particular.
Why is Dogecoin crashing?
DOGE started 2021 as one of the most popular cryptocurrencies on the market.
It surged in value from obscurity by up to 4,000 percent, with backing from multi-billionaire Elon Musk.
His influence has come as a double-edged sword and has unfortunately worked against the market, most recently last week.
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As of today, DOGE is worth $0.22, down 14.75 percent over the last 24 hours.
Mr Musk’s tweet prompted a furious debate in the comments below, with people taking both Mr Powell and Mr Musk’s sides.
One user said of Mr Musk: “He’s certainly smart as hell. But I would have to side with [Mr Powell] on this one.
“Mining facilities are greener already, and continue to be. There’s no incentive to mine crypto if you have to pay the proceeds of making it to energy CO’s that charge too much.”
Another disagreed, saying: “Bitcoin miners have a need to improve the reality of Bitcoin mining, but we lack accurate data.
“If Bitcoin respects the S2F model, energy consumption will be terrible in a few years.”