- Dogecoin can rise past $1 if it can gain more utility, crypto bull David Gokhshtein says.
- Altcoins have exploded in popularity, making bitcoin and ethereum boring by comparison.
- Here are five altcoins that are worth considering and one to avoid according to Gokhshtein.
Prepare for the “doge” days of fall as dogecoin’s dog days of summer fade away in the rearview mirror.
Dogecoin, a cryptocurrency created as a joke in 2013, has made serious gains in 2021. It’s up 20% in October and nearly 5,200% this year as momentum builds for digital tokens, despite the fact that not even its creator, Billy Markus, believes in the so-called “meme coin.”
That hasn’t stopped an army of small-time retail investors from rallying behind the Shiba Inu-inspired token and knockoffs, including — ironically — none other than the Shiba Inu coin. Their mission to send doge from $0.25 to $1 will succeed, says David Gokhshtein, a long-time crypto bull and CEO of PAC Global.
“I firmly believe it will go to a dollar,” Gokhshtein told Insider in a recent interview. “You have Vitalik [Buterin, the co-founder of ethereum], who’s on dogecoin’s foundation now. If ethereum helps out with building or correcting something within doge’s ecosystem, there’s no limit, it just doesn’t stay at a dollar. It goes further.”
Dogecoin can rise 12-fold from current levels to hit $3, Gokhshtein said, but only if it gains more real-world utility. Currently, the coin can facilitate online transactions, though most people who buy the token are speculators simply hoping to flip it for a quick buck.
Rival tokens have more promising use cases, powered by automated “smart contracts” that proponents say can execute a wide range of tasks, from protecting medical data to limiting fraudulent insurance claims. Dogecoin can reach its potential if it follows suit, Gokhshtein said.
Alt season reaches feverish levels — but watch out for one
As the nascent cryptocurrency space develops, daredevils are steadily extending the digital asset risk curve. Bitcoin (BTC) and ethereum (ETH), the two largest cryptocurrencies, once epitomized volatile, high-risk assets — and while the two still see sizable price swings, they pale in comparison to smaller altcoins, which can multiply or crash far more easily.
A familiar pattern has emerged in the world of digital assets: Crypto newcomers first hear about bitcoin — the digital asset gateway drug — and decide to dip their toe in the water, before learning about ethereum, then about altcoins that some have labeled as “ethereum killers.”
Ironically, interest shifting away from bitcoin and toward riskier assets can serve to legitimize the original cryptocurrency, both by making it seem safer by comparison and by bringing cryptos into the mainstream as people make accounts on Coinbase and Robinhood, Gokhshtein said.
“People that want to make a quick buck, they’re searching for just meme tokens or NFTs [non-fungible tokens] because they’ve heard that, ‘Oh, my God, I can get into an NFT and I can go ahead and flip it,” Gokhshtein said. “They’re not going into ethereum, they’re not going into bitcoin to go ahead and get rich overnight. That’s not what their friends are telling them.”
With the so-called “alt season” lifting small and large cryptocurrencies alike to astronomical heights, even Gokhshtein admits that the bullish sentiment is a bit out of whack.
“I’m watching a few of these things that are going up; they have nothing behind it except hopes and dreams,” Gokhshtein said. “You stare at it — it’s baffling. … We have to be honest: If that digital asset does not have a real utility or a real any sort of use case to it, it’s not going to survive. It won’t be around in three years.”
Below are five altcoins that Gokhshtein believes will succeed in the long term, along with each coin’s symbol, market capitalization, use case, and analysis from Gokhshtein. He says he owns all five, plus bitcoin and ethereum.