The cryptocurrency market is currently overflowing, with more than thousands of altcoins and stablecoins being created every day. While many go unheard of, some assets have taken the crypto world by storm. Dogecoin is one such cryptocurrency that has been a star performer amongst the top-rated cryptos over the past few months.
Dogecoin is among the first meme tokens and was created as a joke by its founders Billy Markus and Jackson Palmer, back in 2013. Since then, it has thrived for various reasons, including its environmental impact and media presence.
With recent endorsements from celebrities (such as Tesla CEO Elon Musk), Dogecoin has transformed into a promising cryptocurrency from a token of little real-world importance. For this and many other reasons, Dogecoin is likely to explode.
Is DOGE All Set To Explode?
Though it was born as a joke coin, Dogecoin now enjoys several potentially bullish factors, making it difficult to dismiss it as an asset. Of course, the risk to investors remains high, as it does with all digital assets. Still, Dogecoin’s low energy costs, a potential for a shared security protocol with Bitcoin, and a measure of price stability are positive signs overall.
Though not directly measurable, Dogecoin also may benefit from the considerable goodwill of its two million-strong retail investor “fan base.”
Notably, Dogecoin differs from Bitcoin’s proof-of-work protocol in several ways, including the Scrypt technology. In addition, the altcoin boasts a block time of 1 minute, and the total supply is uncapped, which means that there is no limit to the number of Dogecoin that can be mined.
Mining Doge is also simple. Users can mine Dogecoin either solo or by joining a mining pool. A Doge miner can mine the digital currency on Windows, Mac, or Linux with a GPU. As of 2014, you can also mine Litecoin in the same process of mining Dogecoin, as the processes were merged.
Multiple factors make Dogecoin quite a good investment, especially at the current price.
Here are a few reasons why you should invest in Dogecoin right now:
1. Environment-friendly digital asset
Millions of people around the world love dogecoin for a good reason.
Among the young cryptocurrency enthusiasts, preserving the environment is commonly seen as a high priority. In light of that, the vastly lower amount of electricity required to mine and use Dogecoin compared to Bitcoin could boost its attractiveness as a crypto alternative. Dogecoin uses just 0.12 kilowatt-hours of electricity per transaction, compared to Bitcoin’s 707 kilowatt-hours.
Earlier, the nonprofit VeriBlock Foundation said it is working on a proof-of-proof blockchain technology that would reuse Bitcoin’s proof-of-work security for other cryptocurrencies, including Dogecoin. If deployed successfully, the technology could lower Bitcoin’s relative environmental costs and enhance the security of assets like Doge.
This could potentially help Bitcoin and Dogecoin develop a symbiosis rather than a direct rivalry, benefiting holders of both coins.
2. Solid community support
Doge enjoys immense community support, making it a must-buy cryptocurrency.
The main factor that has driven Dogecoin’s immense success is the community. Elon Musk, CEO of Tesla, and celebrities like Snoop Dog and Paris Hilton, have taken on to Dogecoin. These celebrities have millions of followers and have influential power over their users, paving the way for the coin’s popularity. Therefore, people who had zero ideas about cryptocurrencies like Dogecoin are now thinking of investing in them.
The joke crypto also boasts of a robust team. A cryptocurrency is as great as the developer team behind it. The more dynamic the core developer team is, the better it is to perform well in the long term. They can do enhancements that make the cryptocurrency more versatile to the changing business sector needs. They can likewise deal with issues like security, which is fundamental to the drawn-out development of any cryptocurrency.
Notably, the Dogecoin sub-Reddit has over 2.2 million ‘subshibers’ (Shiba Inu subscribers) on its page. Given the speculative nature of cryptocurrency, popularity alone is critical. As for a valuation, Dogecoin is worth a lot because others believe the token will increase in price.
The return DOGE has provided investors over the past year alone is a staggering 20,000%. Thanks to the community support and media hype, Doge is likely to explode, making now a good time to buy DOGE.
3. Inflationary advantage
Dogecoin has many advantages over Bitcoin, making it a stellar investment choice.
There is no limit on the total number of DOGE tokens that could be mined, unlike many other cryptocurrencies, including Bitcoin. As a result, a maximum of 5.26 billion additional Dogecoin tokens can be mined per year.
With over 132 billion coins already in circulation, this capped mining rate ensures Dogecoin’s inflation rate will decline steadily over time while still providing an incentive to continue mining it.
By 2021, experts predicted the number of DOGE coins in circulation to rise by 4.1%, but only 3.9% in 2022. Dogecoin inflation will be 3.5% in 2025, 3.0% by 2030, 2.3% by 2040, and 1.9% by 2048. Given the attrition from lost Dogecoin wallets, the coin could theoretically become deflationary at some point if those losses exceed the ever-shrinking inflation provided via mining.
In short, while Dogecoin is theoretically “infinitely inflationary,” its predictably declining, mathematically inevitable inflation rate potentially gives it more a stable value than national currencies.
The entire concept behind crypto was to supplant fiat with decentralized money. Bitcoin, the first crypto, fizzled on this front. Its purpose is currently shifted towards being a store of significant worth. The reason why Bitcoin and others are falling flat on this front is that they are deflationary.
There are various reasons why deflationary currencies (such as Bitcoin) may never function as currencies. But Dogecoin’s inflationary nature makes it one of the best cryptos of the long run. So investing in Doge now could help you generate massive returns in the future.
Why Dogecoin Is Going To Explode: The Bottom Line
Where cryptocurrency positions in market capitalization rankings matter. It makes crypto appealing to new investors hoping to wager available. Today, Dogecoin is an elite-level cryptocurrency that has attracted investors and fans from all over the world.
Anybody getting into the market today needs to treat Dogecoin seriously. Not only will this likely extend its liquidity, but it will likewise drive up its value force going into what is to come. This in itself is an excellent reason to hold Dogecoin today, expecting more gains over the long run. Keeping these factors in mind, it is safe to say that Dogecoin is likely to explode.
However, remember that Doge is volatile, similar to other cryptocurrencies. People investing in cryptocurrencies should not put any money into Dogecoin that they are not prepared to lose.