Have you completely dismissed Dogecoin as a valid Cryptocurrency?
Bitcoin is not the be-all-end-all of all cryptocurrencies. There are more in the market and Dogecoin is possibly the most interesting one with an odd origin story!
Dogecoin is the new Bitcoin. It may be too early to say, but in the next few months, Dogecoin may become the cryptocurrency of 2021. It is already on the way and has witnessed a sharp rise since the beginning of the year. Since January 2021, Dogecoin’s return has been close to 1900%. Yes, you read that right. There was a time when a coin was worth less than a cent, but the recent surge brought its value to $0.122680 or nearly 12 cents. This is great for a digital currency that was just a joke at the beginning.
What is Dogecoin?
The thing you need to know before investing in Dogecoin is a cryptocurrency with an interesting and friendly brand image that aims to be a supportive introduction to cryptocurrency. Billy Markus, a programmer from Oregon, proposed the concept of a “meme” cryptocurrency. He reasoned that currencies that are more popular than Bitcoin are more likely to gain widespread acceptance. According to data from CoinMarketCap, although the scale of Dogecoin is far smaller than that of Bitcoin, the market value of the “joke” coin has risen from more than $1 billion in early January to $47 billion on Saturday.
Dogecoin (DOGE) is an open-source cryptocurrency. So far this year, the token has risen about 7,000%. Driven by an optimistic tweet from Tesla boss Elon Musk, DOGE set a record high of $0.73 on May 8, 2021.
According to a report released by the stock market news website Benzinga, cryptocurrencies have soared to nearly 1,900% since the beginning of 2021. Given Bitcoin’s surge, this jump is significant. It was 117.47% over the same period. Yes, Bitcoin has come a long way and is considered to be the cryptocurrency that will define the future, but the possible impact of Dogecoin cannot be ruled out.
The digital currency has mushroomed into the most-watched available cryptocurrency: not necessarily because of its price.
Will Dogecoin become a competitor to Bitcoin?
In terms of growth, It is a 50–50 box, because it depends entirely on market trends. However, compared to Dogecoin, Bitcoin is still more popular and more famous.
Considering their Price, Dogecoin cannot beat Bitcoin at this time.
Because of its almost unlimited supply, eventually, supply will meet demand, and may also exceed demand. Hence, the price of BTC is stable or spiraling downward, enjoying appreciation due to its limited supply and the first movement of the industry. The number of Bitcoins is limited, and most of them have been mined, so in the long run, Bitcoin will continue to increase in value.
What are the benefits of buying Dogecoin?
5 reasons to invest in Dogecoin
There are six reasons to pay attention to Dogecoin (DOGE) and own some before proceeding, if you are worried about where all these cryptocurrencies are going, don’t give up!
Dogecoin is not sensitive to the hype! If you have been actively paying attention to cryptocurrencies, then you must have realized that the rise and fall of Dogecoin prices are not driven by media hype.
The mainstream adoption rate of Dogecoin has increased. No wonder cryptocurrency investors have been looking for low-priced coins that will not expose them to the risks associated with volatility. DOGE is your perfect choice! Therefore, Dogecoin has a positive impact on new adoption. Compared to traditional currencies, it is less intimidating and any newbie will accept it.
It is easy to exchange. Compared with other low-priced assets, it is highly liquid and is equivalent to a larger currency in terms of transfer utility.
Doge will grow well in the future. Dogecoin has risen to the 24th position on CoinMarketCap, with a total market capitalization of US$279 million. Although this may sound like a lot, the sudden surge in popularity may really push this cryptocurrency forward in the future.
They are currently running large projects. With its extremely low price, Doge has proven that it can generate active transactions while entering a higher price range while remaining affordable.
Is it safe to invest in Dogecoin?
Like any other cryptocurrency, it is risky. Like Bitcoin, Ethereum, XRP, Litecoin, etc., Dogecoin is venture capital. If the price of the coin falls, miners will ignore it, the protection of the network will be reduced, and the coin will not be safe.
Is now the right time to invest in Dogecoin?
Dogecoin has no apparent purpose. Although it increased because people started investing in it, since it has no use case, you can never be sure of its future. If you want to invest in Dogecoin, you only need to do so for short-term profit. Crypto investors and experts believe that the value of Dogecoin will increase. In fact, this is a good way to make money by buying and holding Dogecoin. Investing in long-term cryptocurrency, or sometimes called “Holding” is one of the best strategies for investing in Dogecoin.
Dogecoin is just another cryptocurrency. Only when you understand its use cases, you can understand its advantages and disadvantages. An example of this is the fast transaction speed associated with Dogecoin, which also has very low transaction fees. This is one of the biggest advantages of digital currency.
Unlike Bitcoin, Dogecoin has no upper limit, so there are actually over 100 billion Dogecoins in circulation.
Dogecoin was originally just a joke, and now it has gained recognition from celebrities such as Elon Musk and Snoop Dogg, and rock musician Gene Simon is raising prices. Musk expressed his interest in coins again in April 2021.
During the market frenzy, DOGE sold more than Bitcoin (BTC), indicating a high demand for the asset.
Which is better, Bitcoin or Dogecoin?
The answer to this is split. Although some people say that Dogecoin is better than Bitcoin because it has lower fees and faster transaction speed, it is not concentrated by the main 2% holders; the price is stable, and mining is profitable. It does not encourage hoarding.
Another school of thought believes that Bitcoin can be used to buy things and is in the hands of real professionals. Dogecoin was just a joke at first and was hyped by billionaires such as Elon Musk. The current dominance of the market requires experience, and your answer is there.
Bitcoin and Dogecoin are two cryptocurrencies that have recently made headlines due to their respective rise in value. In terms of investment, both cryptocurrencies are exciting. Although Dogecoin does not seem to have any chance of reaching the immense value that Bitcoin can one day achieve. This is so because there are more Dogecoins on the market today.
However, this does not mean that investing in Dogecoin cannot obtain a considerable return on investment. In fact, recently, Dogecoin’s value has soared 7 times. In this way, Dogecoin has gained some goodwill from the crypto community, and its fundamental goal is to improve everyone’s life, not just the rich. Therefore, experts say that owning some of them is not a bad idea.
~ Deepansh Pratap