For more than a century, history has been pretty clear: Investing in the stock market has been one of the most effective ways to build wealth over time. Although we’ve seen assets like housing and commodities like gold have their day in the sun, they’ve not come close to matching the long-term total returns (including dividends) of the broader market.
But this long-term strategy of buying and holding stocks has seemingly been put on the back burner since cryptocurrencies made their debut. Bitcoin (CRYPTO: BTC) and Ethereum, the two largest digital currencies by market value, both traded well below $1 following their inception and now go for around $50,000 and $4,000 per token, respectively.
Yet it’s not Bitcoin or Ethereum that’s been generating the most buzz on Wall Street in 2021. Rather, joke cryptocurrency Dogecoin (CRYPTO: DOGE) has been all the rage.
Dogecoin has outperformed pretty much every asset over the past year
It’s no secret that young investors love chasing after momentum plays. With Dogecoin rising by more than 22,000% over the trailing 12 months, it’s been arguably the best-performing asset on the planet.
Supporters continue to lean on its perceived growing utility, its lower transaction fees relative to Bitcoin and Ethereum, and Tesla Motors’ CEO Elon Musk’s numerous tweets mentioning Dogecoin as catalysts. Musk recently served as the host of Saturday Night Live, with one of the skits mentioning Dogecoin.
Elon Musk explains Dogecoin on SNL:Is it ‘the future’…