Now That Bitcoin And Dogecoin Have Failed, Who’s Next? Ethereum? | by Paulo A. José | Jul, 2022
Dogecoin is like Bitcoin
Dogecoin is the perfect example of a useless currency that makes people rich. Overnight, yes.
Almost no one makes much of Dogecoin, but it has become one of the most loved and hated cryptocurrencies in the world.
In the past year, Dogecoin has risen more than 1,100 percent in less than a month.
Any price prediction on Dogecoin of $1, $5, or even $10 would be a waste of time. Because.
Nobody wants to use Dogecoin
Not many people join the Dogecoin community not because they want to use it.
They buy it because they think other people will also buy it in the future, which drives the price over the moon.
Bitcoin has already proven to be a store of value, similar to gold. Dogecoin will never be a store of value because it is significantly more volatile than Bitcoin.
There are over 1 billion dogecoins circulating in the community
DOGE has an infinite supply, like the dollar and the euro, and many other fiat currencies.
So miners will always get Dogecoin.
This means that Dogecoin will always be inflationary unless this is changed in the source code in the future.
Scarcity is one of the main reasons for Bitcoin’s success, and Doge is not a scarce commodity.
Like Bitcoin, Dogecoin can also be used as a payment method in some stores and businesses.
The dogecoin community just wants to profit
They just don’t admit it.
If you pay attention that Doge or Shiba Inu are moving, keep an eye on the movement in the other cryptocurrencies.
Dogecoin and some of the other meme cryptocurrencies are moving at the same time.
Although Dogecoin’s market position has fallen since its historic high in May, it is still one of the most loved and strongest cryptocurrencies.
Dogecoin has a market value of about $9 billion. And it is the 10th largest cryptocurrency in terms of market value.
Market value is a useful metric for determining the value of volatile assets like Dogecoin. And Bitcoin.
Cryptocurrencies with smaller market capitalization tend to experience greater price fluctuations. They have less liquidity than larger cryptocurrencies. Like Ethereum and Bitcoin.
A hotspot between Bitcoin and Dogecoin
One of the similarities between Bitcoin and Dogecoin is how each network settles transactions.
The two cryptocurrencies use the consensus mechanism called Proof of Work (PoW), where miners add new coins into circulation.
But, the most serious difference between Bitcoin and Dogecoin is the maximum coin supply.
Bitcoin’s maximum supply is 21 million coins. Dogecoin’s maximum supply is ~130 billion coins.
The rest you can probably already imagine.
How does Dogecoin fit in perfectly?
Dogecoin is a meme coin.
It is based on an existing project, Luckycoin, which is also a project and clone of Litecoin.
There is no official white paper for Dogecoin, enthusiasts have really only created blog and forum posts as a substitute for official explanatory documents. Typical meme.
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