It’s been a crazy few months for cryptocurrency investors. Those investors involved in everything from Bitcoin to Dogecoin saw the price take a massive drop, all from some tweets. Billionaire Elon Musk stated on May 13 that his company would no longer be accepting purchases using Bitcoin. While he cited the concerns over the use of fossil fuels in mining, it may be more related to the volatility of the market.
Dogecoin drama in massive sell-off
The news set the price of Dogecoin plunging. After reaching an all-time high of $0.895, it dropped by more than half to $0.411, where it sits today. It wasn’t alone, with Bitcoin climbing to a record high of around $81,500 last month and since dropping to $45,650 where it sits as of writing.
More fuel was added to the Dogecoin fire from a one-word answer from Musk. When a user tweeted that Bitcoiners will “slap themselves next quarter” when they discover that Musk dumped the rest of Bitcoin holdings, Musk responded with a simple, “indeed.” While he later stated that his company had not dumped Bitcoin, many speculate that it could be coming soon.
Musk could be planning to move everything over to Dogecoin. But this seems unlikely, as it also operates under the same mining situation as Bitcoin, so the fossil fuel argument would still apply. Still, Musk stated that Dogecoin would be “potentially promising” and is “working with Dogecoin developers to improve system transaction efficiency.”
Should you buy Dogecoin?
In short? No. At least, not right now. If you’re wanting a little less risk in your portfolio, you’re not going to find it with Dogecoin. A small stake is possible, sure, but if you want to get rich overnight, it’s not going to happen right now. It might be something you can invest in and watch carefully for news, but unless you’re an active investor, it might be better to look elsewhere.
You can still see large, stable returns from a company like Lightspeed POS (TSX:LSPD)(NYSE:LSPD), which I’d still consider undervalued. The company reached all-time highs of about $105 before dropping by almost half, but Lightspeed stock has been on the rallying path since that time.
Lightspeed stock is up 167% in the last year, but in the last week it climbed about 25%! This comes with the rebound in the tech sector, but also on the tails of an outstanding quarter for the company. Q4 revenue grew 127% year over year, and 2022 looks great in management’s opinion. The company expects to more than double revenue to around $450 million from the recently reported $221.7 million.
I believe Lightspeed stock will continue to beat analyst estimates in both the near and long term. As businesses continue to flock to the company, it stands to take advantage of both brick and mortar and online retail locations. Its subscriptions continue to climb around the world and revenue jumps along with it. There is substance here investors can latch onto, which is more than you can say for Dogecoin.
Foolish takeaway
There is a tech stock correction underway, so investors may not have that much time to pick up Lightspeed stock at a relatively cheap price. But Dogecoin, though inexpensive, will remain volatile for quite some time. After all, if an entire industry can be set off balance by a tweet, do you really want in on it?
