Everyone knows that cryptocurrencies are quite a serious project in the financial world and are overwhelmingly designed to move to the top of the market quickly.
Developers of new coins do everything possible to convince investors to pay attention to their cryptocurrencies. It incorporates the latest technology into the blockchain network, takes full advantage of smart algorithms, and markets the product actively.
As a result, many cryptocurrencies are used for investment, trading, and mining. However, not all developers are taking this serious approach. One day, two friends decided to play a joke.
As a result of the joint joke, a new cryptocurrency, “Dogecoin,” was born. Comparing the technical aspects of Dogecoin with Bitcoin and Ethereum, which have the infrastructure, billions of dollars of investments, and significant opportunities, its structure is infinitely simple. Moreover, you can swap BTC or ETH to DOGE.
At the same time, the currency is more environmentally friendly than Bitcoin and has no coin emission limits. So, it requires less energy for mining. In addition, since the value of a Dogecoin doesn’t increase so much in the medium term, it is very convenient as a substitute for fiat money.
Investors ignored it for a long time. But it was gradually adopted by some chain stores, sports, medical institutions, etc., and the attitude towards Dogecoin changed. It is used as a payment method now.
Reasons People Invest in Dogecoin
DOGE is a cryptocurrency represented by the famous internet meme, the Shiba Inu. Internet fans know the yellow smiling dog meme that captured the hearts of many. Developers are currently positioning this project as a cryptocurrency for the online community.
What are the Merits and Popular Secrets of this Cryptocurrency?
- Promotion and PR of famous talents and opinion leaders are the main reasons for the popularity of this cryptocurrency. Since 2021, Elon Musk has actively mentioned Dogecoin on his Twitter. Every time he talks about this cryptocurrency, its exchange rate goes up.
- The coin is not controlled by the state and is anonymous. So, it is extremely safe.
- In terms of scalability, Dogecoin seems to be superior to Bitcoin.
- These coins are traded on many exchanges around the world.
Dogecoin was in stagnation for a long time. But at the end of 2017, it suddenly rose sharply. In just one month, the value of Dogecoin has increased by 1000%, and positive expectations continue to push the bar further. As of July 2022, the value of 1 Dogecoin in US dollars is $ 0.06.
Still, this cryptocurrency behaves unpredictably. No one knows what its price will be. However, its volatility is a notable point. If you are lucky, investing now can lead to a good profit.
Is Dogecoin a Good Investment?
So, the coin started as a joke. But it is already worth millions of dollars in market capitalization. The general sentiment of investors and experts announce that the future of DOGE will be the degree of acceptance of coins by the community, pumping by famous people (such as Mr. Musk), and companies that accept DOGE as payment for services and products.
Of course, it depends on positive news. It seems quite possible that the coin will reach several thousand dollars. But further growth will depend on public awareness of the token.
Although DOGE is said to be a meme, it has already shown its strength, contrary to the opinion of many experts that “it is not worth it.” With the general growth of the cryptocurrency market, this token may become even more valuable in the future, and people will exchange coins like LTC for DOGE.