At the beginning of 2021, many cryptocurrencies rose to rarely seen heights. Bitcoin is on everyone’s lips. But there are also cryptocurrencies that are less in the spotlight. One of them is the Dogecoin. What’s up with this coin, which is depicted with the face of a Shiba Inu? Is it worth investing in the Dogecoin? Or should you spend your money on something else? Something like NetBet online casino?
What is the Dogecoin?
The history of Dogecoin began in December 2013 when software developers Jackson Palmer and Billy Markus launched Dogecoin – as a parody of the crypto hype of those days. But investors saw the new cryptocurrency as an opportunity to speculate on rising prices from the start. With success, because after just two weeks, Dogecoin had risen to become the ninth largest crypto currency with a market capitalization of over 8 million dollars. The Dogecoin is characterized by great volatility.
This was particularly evident at the beginning of 2021 when Dogecoin rose by several 100 percent in a short time and cost almost 10 US cents at its peak. Some tweets from cult entrepreneur Elon Musk, in which the multi-billionaire commented positively on Dogecoin, are considered to be the trigger for this enormous increase. He called it the “people’s cryptocurrency”. The Dogecoin has corrected sharply since its high – is that a chance to get in?
How many Dogecoins are there?
According to data from coinmarketcap.com, there are more than 129 billion DOGE coins in circulation and there is no limit to what is available. The lack of an offer cap keeps transaction costs low.
Will the Dogecoin price go up?
The Dogecoins rate is currently $ 0.27. There is a possibility that the value will increase if DOGE continues to be adopted by crypto users as well as retailers. However, cryptocurrencies are prone to unexpected and violent price shocks, so you should be prepared for the risk of a sharp decline in the value of Dogecoin.
Can DOGE reach $ 1 in 2021?
Social media users and some crypto watchers expect the Dogecoin price to climb to $ 1 by the end of the year, while other predictions suggest it will take several years to reach this level. Dogecoin is highly speculative and has the potential to lose all of its value in prolonged bear markets.
What are the advantages of the Dogecoin?
It is very difficult to predict the future development of the Dogecoin. The price is extremely driven by news and tends to swing sharply in both directions. The Dogecoin is a product of meme culture and cannot be understood without it. Every potential investor should be aware of this. From a trading perspective, the Dogecoin with its high volatility definitely offers opportunities. However, there are also some reasons that speak for the Dogecoin aside from the hype. There are now some online shops that accept it as a means of payment.
Dogecoin can also be found in more and more diversified crypto portfolios. Since January 26, 2021, the cryptocurrency has also been available on the Ethereum network, which enables value to be transferred between blockchains. This is just a very small glimpse. Further useful information about buying or not buying Dogecoin should definitely be included in the research.
What speaks against the Dogecoin?
From a technical point of view, the Dogecoin offers no advantages over other crypto currencies. Comparatively little is happening with a view to updates, so there are currently few reasons to consider Dogecoin as a possible digital currency of the future.
Bitcoin is also considered to be rather inefficient. Nevertheless, the digital currency has managed to develop into a serious asset class. You benefit from the fact that not any number of other Bitcoins can be minted. With Dogecoin, on the other hand, there is no limitation of the coins, which speaks against strong price increases over the long term. With increasing popularity (and thus more miners), the opposite is also conceivable.
The great volatility of the Dogecoin, mostly caused by news, harbors great risks for investors. There is always the risk of jumping on the bandwagon too late and having to accept major book losses. Furthermore, nobody knows whether and if so, when the Dogecoin hype will continue.
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Source: https://coinpedia.org/guest-post/jump-on-the-dogecoin-doge/
