Bitcoin and Ethereum are relatively large and expensive for retail investors the ability to invest in those currencies is limited by retail investors, but if you look through the value of Dogecoin is relatively very small compared to both currencies Bitcoin and Ethereum, it is easier for retail investors to pour the money in Dogecoin and more importantly the constant growth rate of Dogecoin is far beyond the expectation.
Faith of Investor
From the perspective of investment, it is common faith that those things that have high risks must have great returns but in the case of Dogecoin, it has risen almost 250%, the data related to Dogecoin advancement is always positive while looking towards short term or long term.
Now it was seen on the crypto market that the investors definitely look those encrypted assets that can maintain value, investment banks such as Citigroup and Goldman Sachs also turn their customers towards crypto-assets, and due to the bull market in the crypto world the Bitcoin and Ethereum are reduced for small investors, the Ethereum is a rising start and in near future, it replaces the Bitcoin.
Why Invest
The concern for many retail investors is profit and hedging, the retail investors in the crypto world believe in culture, community, the pursuit of similar belief, and the social ecology, in this respect Dogecoin cast its shadow as the actual cryptocurrency that will take the position as a market leader.
The main reason behind the rise of Dogecoin is Musk, including his friend’s and some other institutions, all these push-ups and market forces jointly promoted Dogecoin encrypted digital currency, therefore the Dogecoin continued to rise, many iterations of its rise are based on the celebrity perspective of capital and many times community speculation.
Value of Currency
Due to negative sentiments by market forces is the Dogecoin will never rise again, but when such a phenomenon occurred, some well-known influential persons including Musk appeared on media and talk about the investment value of Dogecoin.
The true value of cryptocurrency lies in its encryption and irreversibility, the interest of users and the trust, the better financial technology, and the ability to solve the inflation problem, many misunderstood with the ratio of fiat currency and cryptocurrency, the uniqueness of cryptocurrency and the power of significant global economic integration, it is also recommended not to go short term over some speculation hype but think bigger.
At present the Bitcoin and Ethereum are both tools of trading warfare, current suspicion of hype, and the existence of bubble due to further strengthen supervision of governments, many non-professionals should avoid such crypto investments.
If you compare Dogecoin with Ethereum and Bitcoin you can easily understand that Bitcoin and Ethereum are leading market currencies, both already approached high-level momentum and continuous growth for many years, therefore highly volatile and accumulated huge risk momentum, a little trouble will lead to plummeting the value of the asset, but Dogecoin from asset side does not have such problems.
The trends of the crypto market from the perspective of investment demand are towards settled arbitrage and new target, because of the entry of new investors and funds people no longer consider old digital currencies but rather turn to diversified digital currency investment options.
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Source: https://medium.com/cryptocurrencies-ups-and-down/the-next-bitcoin-the-dogecoin-970e09bae97c?source=rss——-8—————–cryptocurrency
