- Dogecoin rised 20% after president-elect trump announce for the new department of government efficiency.
- The primary mission of DOGE is to “dismantle government bureaucracy,” said source.
What happened
Following President-elect Donald Trump’s official announcement of the establishment of DOGE and the appointment of Elon Musk and Vivek Ramaswamy to lead the Department of Government Efficiency (AKA DOGE). Dogecoin continued to surge from $0.15 to around $0.43 over few days. Dogecoin reflects a 177.73% increase recent days. The coin’s market capitalization jumped by $30 billion within a week, indicating strong retail interest as evidenced by the addition of nearly 75,000 new wallets holding less than 100,000 DOGE.
In contrast to bitcoin’s 30% increase over the same time span, it has gained 153% since election day, making it one of the greatest winners in the postelection surge. This week, it also surpassed XRP to take the sixth-largest cryptocurrency by market capitalization.
The remainder of the crypto market was on pause from its post-election rise. After briefly reaching $90,000 in late afternoon trading, Bitcoin was trading flat at over $87,000. During prolonged trading, the cryptocurrency stocks Coinbase and MicroStrategy had declines of 1% and 2%, respectively.
Also read: Goldman Sachs CEO discusses bitcoin’s potential and blockchain benefits
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Why it’s important
The creation of the Department of Government Efficiency (DOGE) by President-elect Donald Trump, with Elon Musk and Vivek Ramaswamy at the helm, represents a significant shift in the approach to federal governance. The primary mission of DOGE is to “dismantle government bureaucracy,” reduce excessive regulations, and eliminate wasteful expenditures within federal agencies. The department aims to conduct a comprehensive financial and performance audit of the federal government, targeting fraud and improper payments. This initiative is positioned as essential to Trump’s “Save America” movement.
The appointment of Musk, a prominent figure in technology and innovation, signals a potential shift towards an “entrepreneurial approach” in government operations. The acronym DOGE cleverly references Dogecoin, a cryptocurrency popularized by Musk. This connection not only highlights Musk’s influence but also taps into contemporary cultural trends surrounding cryptocurrency and internet memes, potentially engaging a younger demographic in political discourse.
If successful, DOGE could pave the way for significant changes in how federal agencies operate, potentially leading to substantial budget cuts and a reevaluation of federal workforce needs. Ramaswamy has previously suggested drastic reductions in federal employment, indicating that aggressive reform may be on the table.
