1. It has some high-profile individuals who comment on and observe it, particularly the self-anointed “former CEO of Dogecoin” Elon Musk who appears to use it as a strategy to mock Bitcoin and cryptocurrencies typically.
2. It is likely one of the oldest cryptocurrencies on the market, having been launched in December 2013.
3. Its value is especially uncommon as one Dogecoin is, and customarily has been, price so little as to permit even a retail consumer to build up a big seeming-fortune (at the very least in Dogecoin phrases). A Dogecoin unit has hovered just lately close to its all-time highs of between 5 and 6 cents however for a lot of its historical past has been price only a fraction of a cent, for years even staying constantly as little as $0.001 to $0.002 per unit. This has additionally meant it has seen extraordinary value volatility at the same time as its nominal value nonetheless appears “low” – if one entered Dogecoin at $0.006 and offered round $0.06 that’s an over 100x return fee.
4. It neither has a hard and fast max provide nor an inflation fee managed by both the market nor a central issuing node/group. Reasonably, Dogecoin started with an preliminary max provide of 100 billion Dogecoins that was reached in 2015 whereupon it started a hard and fast inflation fee of 5.25 billion Dogecoins per 12 months, making a proportionally lowering inflation fee as time goes on. At present there are round 128 billion Dogecoins, that means an annualized inflation fee of a bit above 4%.
5. A lot of the intention behind its creation was lighthearted and nonetheless is. When Dogecoin originated it primarily took the well-known “Doge” Web meme of a Shiba Inu canine and immortalized it within the type of the then-budding cryptocurrency world, making a plethora of jokes and humor that projected a brighter tone as in contrast with most cryptocurrencies that keep rooted in a usually severe public picture.
Although Dogecoin originated, and nonetheless is, a joke, that does not imply it would not have actual monetary and technical uses. Dogecoin transfers are fairly quick, low-cost, and actual (as a result of minute worth of a Dogecoin). Many massive crypto-exchanges help it, corresponding to Kraken and Binance, and it even is accessible, even when not in pockets and transferable type, on the favored Robinhood inventory buying and selling app. Coinbase, whereas not providing it on the market, nonetheless even hosts pockets capabilities for it.
Dogecoin in latest weeks has seen an uncommon value surge at a fee that even surpasses that of Bitcoin. I consider this is because of a mixture of one other surging “cryptocurrency curiosity” season much like late 2017/early 2018, and more likely to finish finally in a considerably comparable method, and some statements by Tesla CEO Elon Musk which have pushed curiosity to Dogecoin regardless that he has said just lately he owns none.
Whereas I am not sure the present value for Dogecoin is sustainable and in addition consider that value volatility will nonetheless be very a lot a part of this area of interest cryptocurrency, I significantly like Dogecoin as a result of its monetary and technical attributes make it an fascinating crypto-currency for precise use sooner or later. Whereas it could not develop into the cryptocurrency of an Elon-Musk-run Mars as some advocates say, it nonetheless permits actual, fast, and low-cost funds in a approach that Bitcoin at the moment doesn’t. It’s ‘enjoyable’ and straightforward to popularize and entry, that means retail adoption could show extra possible than a number of the very technical cryptocurrencies.
Moreover, its mounted inflation fee implies that new Dogecoins will at all times, at the very least underneath the present system, be created and mining nonetheless ongoing – that is what permits a cryptocurrency to develop and increase with its consumer base and resolves, for probably the most half, a scalability problem that Bitcoin nonetheless has not resolved. Dogecoin additionally is ready to management its threat of falling into the altcoin-abyss of forgotten cryptos by way of its partial piggybacking off of mining the popular Litecoin.
Lastly, regardless that its risky, the truth that it nonetheless is pegged to itself means it may stand out as a ‘forex’ greater than stablecoins that make the most of cryptocurrencies’ technical attributes with out the fiat-to-crypto value trade.
In brief, I like Dogecoin as an actual cryptocurrency for potential frequent and widespread use sometime. I can think about sometime sooner or later paying for a cup of espresso in Dogecoin however doubt I’d ever accomplish that with Bitcoin (except I needed to pay a $5 transaction charge on a $3 espresso and wait 10 to twenty minutes for it to course of). Till Dogecoin sees widespread adoption it possible will proceed to see in depth value volatility, however nonetheless I feel it is a worthwhile cryptocurrency to keep watch over.
Disclosure: I’m lengthy DOGE-USD.