Will Dogecoin Hit $1? Creator Billy Markus on How It's Possible As Price Goes Up

The price of meme cryptocurrency Dogecoin may continue to rise and could eventually hit $1, its creator and co-founder Billy Markus has said.

The one-dollar mark has long been the aim of some members of the Dogecoin community on Reddit, and is becoming a real possibility as this week the price shot up from around $0.13 Thursday morning to around $0.29 Friday morning.

At the time of writing, a single dogecoin was worth $0.25, up more than 80 percent in the past 24 hours according to CoinMarkCap data.

It was not entirely clear what sparked the surge, but the cryptocurrency was mentioned online this week by some high-profile users, including tech billionaire Elon Musk, the "Wolf of Wall Street" stock trader Jordan Belfort and meat snack company Slim Jim.

The boost also came as cryptocurrency exchange platform Coinbase became the first of its kind to go public in the U.S., shining a spotlight on the fintech industry.

Markus, who founded Dogecoin with fellow software engineer Jackson Palmer in 2013, told Newsweek via email this week that the market ultimately decides the price.

When asked if he could ever see Dogecoin, or DOGE, hit $1, Markus explained: "It's an open market, so the current value is simply decided by whatever someone is willing to pay for it at a specific point in time."

The creator continued: "If the world collectively decides they are willing to purchase it for a dollar, then it's worth a dollar. In the world of cryptocurrency valuations, I would say, historically the question is less about 'why?' and more about 'why not?'"

Why is Dogecoin worth what it's worth right now?

It is for the following reason:

Why not?

— Shibetoshi Nakamoto (@BillyM2k) April 16, 2021

While the potential is there for a major price rally, others say that it is still unlikely that dogecoin—which was initially launched as a parody of digital currencies using a Shiba Inu dog meme as the face of the brand—can technically reach $1.

Jason Potts, economics professor and co-director of the Blockchain Innovation Hub at Royal Melbourne Institute of Technology (RMIT) University in Australia, told Newsweek he would be "surprised" to see the dogecoin price rocket to $1 levels because, unlike Bitcoin, there is no supply cap.

He told Newsweek: "I would be very surprised to see DOGE coin hit $1, mostly because of its extremely large and inflationary supply schedule. It lacks hard scarcity."

The professor conceded that it was not impossible, however. Broadly echoing Markus, he said buyers and sellers will determine its value: "Markets reflect value, so if someone is willing to buy a dogecoin for $1, then that is what it is worth in exchange."

Potts elaborated: "The limiting factor is that if the price does start to rise considerably (i.e. someone bids $1) then that will induce a huge wall of selling (from all those holding DOGE) which will flood supply and bid prices back down. This is just how markets work. It's exceedingly hard to create a corner and bid something up unless you control a significant part of the supply, which was the case in the GameStop fiasco."

In January, Reddit-based retail investors—those who use their personal money to buy shares—poured funds into "meme stocks" such as GameStop (GME), and AMC in an attempt to disrupt U.S. hedge funds and corporate short sellers. It worked.

For many in the more traditional financial space, it may be difficult to comprehend the rise of Dogecoin. But while it lacks the dominance of Bitcoin—which is priced at more than $60,000 per coin—experts say it is still a legitimate form of currency.

Potts said it was "unlikely" dogecoin would ever be a stable token but added it could become a "niche currency" for certain purposes, such as monetizing "likes" on social media.

Markus added: "At this moment , many people will trade you a dime and two pennies for it, and you can directly buy from any number of merchants who integrate BitPay or Crypto.com payment platforms—companies like [computer and electronics online retailer] Newegg, [NBA team] Dallas Mavericks, etc. have already done so. So it's already something you can trade for all sorts of items."

In this photo illustration of visual representations of digital cryptocurrencies, Dogecoin and Bitcoin, are displayed on January 29, 2021 in Katwijk, Netherlands. Could the price of one dogecoin ever reach $1? Yuriko Nakao/Getty Images