You may be wondering how much you should invest in Dogecoin. Although the digital currency market fluctuates sharply, it can be concluded that Dogecoin is worth buying in one case. But how?
Dogecoin is one of the digital currencies whose codes are made with minor changes from the bitcoin source code, but it is currently one of the most valuable digital currencies.
In 2021, this digital currency, with explosive growth and an increase of 8000%, suddenly became one of the ten largest cryptocurrencies in the world with a large volume of transactions. But first, let’s examine what Dogecoin is?
Dogecoin is a modified version of Bitcoin
Dogecoin was created on a photo of Shiba Inu, a Japanese dog symbol, and introduced to the digital currency market in 2013.
This cryptocurrency creates using the source code of Litecoin and other projects such as Bitcoin. However, its basic structure is exactly like Litecoin, and the supply ceiling is not considered. You can get 1000 Doge for every Dogecoin block discovered. More than 14,400,000 new tokens are added to the miners’ wallets daily, and there is no limit to this figure.
Billy Marcus, the original developer of Dogecoin, also said that the initial reason for the launch of this digital currency was not so serious. It was the same as other coins offered in the world, except that it was called Dogecoin.
Dogecoin supply is not limited
One of the main reasons for the high price of Bitcoin is the limited supply of coins. On the other hand, Dogecoin does not have such a thing in its source code and offers indefinitely. Miners now receive several thousand new tokens daily, so Dogecoin coins are multiplying.
It is decentralized
Another factor to consider with Dogecoin is decentralization. This process allows any digital currency to have a lot of security. The way it works is that a specific person does not manage the assets of the coins, everyone has several coins for themselves, and they work together as a network. Transfer and interaction also work as a P2P network, so no single management controls Dogecoin.
The degree of decentralized digital currency is determined by the number of nodes in its blockchain network. Of course, other factors such as the distribution of miners also play a role.
According to Block explorer analysis, Dogecoin currently has 1090 nodes. If 51% of the nodes work together to infiltrate the network, the system will compromise security. But with 1090 nodes on this network, such a thing is impossible.
Bitcoin also has more than 10,000 active employees operating in 97 countries. More than 5,000 nodes must work together for an attack to infiltrate users’ information. In this case, security is higher than Dogecoin.
Dogecoin changes a lot because of the type of distribution
Another problem with Dogecoin is that not many of these tokens are available to its investors. If you enter the market and buy many Dogecoin, you can change the market with instant trading.
Less than 0.002% of Dogecoin wallets currently hold more than 2/3 of the total coin supply. Accordingly, the size of the wallets is almost evenly distributed. According to the report, wallets with only one bitcoin are less than 5 percent, wallets with 10-50 bitcoins are about 9 percent, and wallets with 500-1000 bitcoins are about 6.6 percent.
The reason for the increase in the price of Dogecoin
One of the first reasons why Dogecoin does not rise in price is inflation and stimulus. During the years 2019 to 2020, only $ 15 trillion was in circulation in the global economy. This amount reached more than $ 20 trillion from 2020 to 2021. So it is no surprise that the price of digital currencies is also fluctuating.
Another reason for Dogecoin’s sharp price increases and fluctuations is the growing use of financial apps. Using these tools can increase impulsive behaviors and make rate changes in the market more severe. Most online currency trading platforms in the world have reduced their commission costs, and trades can be made for anyone 18 years and older.
By creating this type of access level and using virtual networks as the primary source of news and currency signals, behaviors change, and sales and transactions take place in an unprecedented way.
The price of Dogecoin is precisely the value that one wants to pay. They want to pay a lot of money for this digital currency for whatever reason.
The price of Dogecoin is not set based on technology and infrastructure but the basis of the culture behind it.
The value of Dogecoin reached its maximum due to the widespread publicity and introduction of this digital currency by celebrities and influencers and even capitalists like Elon Musk. Many celebrities support this digital currency on Twitter and Instagram.
Of course, whether you plan to invest in Dogecoin depends on your analysis. Still, MarketCap is one of the best indicators you can use to determine the value of a cryptocurrency. Due to the large number of Dogecoins in circulation, the price of each Dogecoin remains low.
How much will Dogecoin cost in the future?
Since 2017, the value of this digital currency has skyrocketed, and many are still wondering how far Dogecoin will go. But many have predicted that digital currency will reach $ 1 before the start of 2022.
Now let’s take a closer look. Is Dogecoin worth the investment? Will the price of Dogecoin increase to $ 1? See you later.
Is Dogecoin a good investment?
There are many stories in the 90s and 80s of significant capital and big companies that went completely bankrupt. Many are waiting for the digital currency market to fall one day. But it was only yesterday, October 8, 2021, that Elon Musk made it clear that the digital currency market would never collapse. The Internet has been available to the public worldwide since the late 1980s. No one even thought that one day he would be able to browse all the cyberspace with a 6-inch phone, communicate with his friends, trade, or watch a movie! Digital currencies follow a similar trend 12 years after their first release.
Dogecoin is no exception to this rule. The more investors are attracted to this digital currency, the higher its value. It is currently around $ 32,138,812,761 in total market value, which is a very high figure. Therefore, this digital currency can be considered a substantial long-term investment. Sometimes I think that the day will come when digital currencies will replace Fiat currencies, which we will probably see in the 2030s and 2040s. But what now? Is Dogecoin worth the investment? The answer is yes.
How to Buy Dogecoin
To buy Dogecoin, you can go to reputable digital currency exchanges such as Binance, Kraken, or Coinbase, register, authenticate, and finally buy Dogecoin after your account is verified. Of course, before that, you must have a digital currency wallet to store your Dogecoin.
Dogecoin price prediction for the next ten years
One of the reasons Dogecoin quickly gained a foothold in the market was that it was one of the first digital currencies to refine bitcoin that users could use as a currency for faster and more efficient trading. Bitcoin has become more troublesome, so much so that you have to wait for hours for a transaction to be credited to your wallet to confirm a transaction.
Since 2017, due to these pressures and the new approach for altcoins to speed up transactions, more people have turned to Dogecoin, and this trend continues.
Most digital currency markets have grown since 2021, and few people are talking about digital currencies right now. As one of the best cryptocurrencies that can be used as an intermediary currency and can be traded in most exchanges, Dogecoin has a very bright future and is worth investing in.
If there is no law shortly against digital currencies and this market continues to proliferate, it is possible to predict rising prices for all these currencies. Dogecoin is supported by many influencers and has a large market cap. So you can safely start your 1 to 10-year investment in this digital currency.