Despite Elon Musk stepping away from DOGE to focus on Tesla, speculation remains rife that the Dogecoin meme coin can still find its place within the US government. With Musk already adopting Dogecoin at Tesla and labelling himself the “Doge Father,” his close ties with President Trump make this likely to happen. If this meme coin is picked for a crucial role, such as covering the US debt, how high would Dogecoin stock price have to surge?
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Can Dogecoin Step in to Cover $36 Trillion US Debt?
According to data from the National Treasury, the US debt stands at a staggering $36 trillion, having grown by more than $4 trillion in four years. This growth has sparked fears, with Jim Cramer urging investors to turn to crypto as a safe haven.
US Debt GrowthDuring these four years, Dogecoin stock price has soared by over 340%, with its market cap also rising by more than 5 times. This shows that the meme coin’s price is growing at a higher rate than the US national debt.
Hence, by looking at Dogecoin’s historical performance, the stock price can surge to a point where it can entirely cover the growing debt burden.
At the same time, US legislators such as Wyoming Senator Cynthia Lummis are already championing a crypto solution to the debt menace. This further increases the likelihood of Dogecoin stepping in to solve this problem.
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How High Will Dogecoin Stock Price Surge?
Let’s explore three scenarios on how high the Dogecoin price would have to surge if used to cover US debt. In each scenario, we assume Dogecoin’s inflationary supply remains at 149 billion.
Scenario 1: DOGE Covers Entire $36 Trillion US Debt
If Dogecoin covers the entire $36 trillion US debt, the stock price would be $240, assuming the supply remains at 149 billion coins. At this price, Dogecoin would be worth three times more than the entire global tech sector.
Scenario 2: DOGE Covers 50% of 36 Trillion US Debt
If the US government uses Dogecoin to cover only half of the US debt, which is $18 trillion, the stock price will be $120, with a 149 billion token supply. This is again unrealistic, as it is half the entire US GDP.
Scenario 3: DOGE Covers 1% of 36 Trillion US Debt
In the third scenario, which is also the most plausible, we assume that the top meme coin is used to cover only 1% of the debt, which is only $3.6 trillion. This is possible considering that Dogecoin stock price will be at $24. With a $3.6 trillion market cap, Dogecoin would be two times bigger than Bitcoin and almost equal the entire crypto market.
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Are These Price Targets Realistic?
Firstly, the notion of Dogecoin being picked to cover the US national debt is far-fetched, considering that meme coins are known for being highly volatile. Hence, this scenario remains highly speculative.
Moreover, two of the price targets realized with the above calculations – $240 and $120 – are not realistic due to the massive market cap that this would give Dogecoin stock. Moreover, considering DOGE is inflationary, its rising supply will be a hindrance to a bullish Dogecoin price prediction.
The most realistic target out of the above scenarios is $24, which will push DOGE to a $3.6 trillion market cap. However, this would mean that Dogecoin outperforms Bitcoin and the entire crypto market.
Key Factors that Will Influence Dogecoin’s Price Performance
Pro-Crypto Regulations in the US: The US regulatory framework towards crypto is shifting, and with some legislators turning towards crypto to tackle economic challenges such as growing debt, Dogecoin stock price is poised to rally.
Institutional Adoption: Several asset managers have filed for spot Dogecoin ETFs with the SEC, highlighting demand by institutional investors to get exposure to meme coins. If the approvals get the SEC’s green light, the institutional inflows to DOGE will bolster gains.
Elon Musk’s Support: After stepping away from the DOGE government agency, Musk may decide to shift his focus back to Dogecoin. Musk has in the past driven massive price gains for Dogecoin stock through endorsements on social media.
Bitcoin’s Growth: Dogecoin tends to track Bitcoin’s price performance, and with top analysts like Cathie Wood forecasting a BTC rally to $1 million, Dogecoin can easily surge.
Considering these key factors, Dogecoin price remains on a bullish path, whether or not the US government picks it to cover the growing debt. However, if Dogecoin gains utility in such a role, it would increase its legitimacy and hype, and this may see it outperform the broader crypto market.
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Frequently Asked Questions (FAQs)
How high would Dogecoin price have to surge to cover the US debt?
Dogecoin price would have to reach $248 to cover the entire $37 trillion US debt. However, to cover only 1% of this debt, the price would have to reach $24.
Can Dogecoin realistically be picked to cover the US debt?
Dogecoin can be used to cover the US debt, considering Elon Musk’s growing influence in the US government. However, such a move would face legal challenges.
What are the key factors that will influence Dogecoin’s price performance?
Some key factors that will influence Dogecoin’s future performance include friendly crypto regulations in the US, institutional adoption, Elon Musk’s support, and BTC’s growth.
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How High Will Dogecoin Stock Price Surge If It Covered the US Debt?
Despite Elon Musk stepping away from DOGE to focus on Tesla, speculation remains rife that the Dogecoin meme coin can still find its place within the US government. With Musk already adopting Dogecoin at Tesla and labelling himself the “Doge Father,” his close ties with President Trump make this likely to happen. If this meme coin is picked for a crucial role, such as covering the US debt, how high would Dogecoin stock price have to surge?
Advertisement
Advertisement
Can Dogecoin Step in to Cover $36 Trillion US Debt?
According to data from the National Treasury, the US debt stands at a staggering $36 trillion, having grown by more than $4 trillion in four years. This growth has sparked fears, with Jim Cramer urging investors to turn to crypto as a safe haven.
US Debt GrowthDuring these four years, Dogecoin stock price has soared by over 340%, with its market cap also rising by more than 5 times. This shows that the meme coin’s price is growing at a higher rate than the US national debt.
Hence, by looking at Dogecoin’s historical performance, the stock price can surge to a point where it can entirely cover the growing debt burden.
At the same time, US legislators such as Wyoming Senator Cynthia Lummis are already championing a crypto solution to the debt menace. This further increases the likelihood of Dogecoin stepping in to solve this problem.
Advertisement
Advertisement
How High Will Dogecoin Stock Price Surge?
Let’s explore three scenarios on how high the Dogecoin price would have to surge if used to cover US debt. In each scenario, we assume Dogecoin’s inflationary supply remains at 149 billion.
Scenario 1: DOGE Covers Entire $36 Trillion US Debt
If Dogecoin covers the entire $36 trillion US debt, the stock price would be $240, assuming the supply remains at 149 billion coins. At this price, Dogecoin would be worth three times more than the entire global tech sector.
Scenario 2: DOGE Covers 50% of 36 Trillion US Debt
If the US government uses Dogecoin to cover only half of the US debt, which is $18 trillion, the stock price will be $120, with a 149 billion token supply. This is again unrealistic, as it is half the entire US GDP.
Scenario 3: DOGE Covers 1% of 36 Trillion US Debt
In the third scenario, which is also the most plausible, we assume that the top meme coin is used to cover only 1% of the debt, which is only $3.6 trillion. This is possible considering that Dogecoin stock price will be at $24. With a $3.6 trillion market cap, Dogecoin would be two times bigger than Bitcoin and almost equal the entire crypto market.
Advertisement
Advertisement
Are These Price Targets Realistic?
Firstly, the notion of Dogecoin being picked to cover the US national debt is far-fetched, considering that meme coins are known for being highly volatile. Hence, this scenario remains highly speculative.
Moreover, two of the price targets realized with the above calculations – $240 and $120 – are not realistic due to the massive market cap that this would give Dogecoin stock. Moreover, considering DOGE is inflationary, its rising supply will be a hindrance to a bullish Dogecoin price prediction.
The most realistic target out of the above scenarios is $24, which will push DOGE to a $3.6 trillion market cap. However, this would mean that Dogecoin outperforms Bitcoin and the entire crypto market.
Key Factors that Will Influence Dogecoin’s Price Performance
Considering these key factors, Dogecoin price remains on a bullish path, whether or not the US government picks it to cover the growing debt. However, if Dogecoin gains utility in such a role, it would increase its legitimacy and hype, and this may see it outperform the broader crypto market.
Advertisement
Frequently Asked Questions (FAQs)
Dogecoin price would have to reach $248 to cover the entire $37 trillion US debt. However, to cover only 1% of this debt, the price would have to reach $24.
Dogecoin can be used to cover the US debt, considering Elon Musk’s growing influence in the US government. However, such a move would face legal challenges.
Some key factors that will influence Dogecoin’s future performance include friendly crypto regulations in the US, institutional adoption, Elon Musk’s support, and BTC’s growth.
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