Context of Elon Musk's first tweet:
While Elon Musk was closely associated with the Dogecoin community in 2018, his first tweet mentioning Dogecoin occurred in 2014. At the time, Dogecoin was primarily viewed as a “memecoin,” a cryptocurrency inspired by internet memes, with little clarity about its use or potential for growth.
Evaluation scenario:
Dogecoin price in 2014: around $0.0002 per coin.
Maximum value in 2021: Dogecoin reached an all-time high of around $0.70 per coin, with short-term peaks higher than that.
Investment account:
A $100 investment in Dogecoin in 2014, at a price of $0.0002, would have been enough to buy 500,000 Dogecoin.
If held until the 2021 price peak at $0.70:
500,000 Dogecoin x $0.70 = $350,000.
Thus, a $100 investment in Dogecoin in 2014 could have grown to $350,000 by 2021, representing a 350,000% return.
Conclusion:
This example highlights the extraordinary returns that early Dogecoin investors have seen, which have been driven in part by Elon Musk’s endorsement and the resulting community interest. While Dogecoin’s journey has been marked by significant volatility, early investors who have stayed invested have seen remarkable gains. However, as with any cryptocurrency, such returns come with significant risk and market volatility.
