Cryptocurrency market is a fluctuating one and when it comes to Dogecoin there are a lot of factors you are going to have to consider like –
Lack of extensive acceptance: The more merchants and people accepting the widely unaccepted DOGE as forms of payment, the greater the demand for currency. However, unless Dogecoin can find support on a wider range of platforms, this could limit the price rise.
Lack of ongoing development – In an interview with CoinDesk in March 2017, Don Coin co-founder Jackson Palmer (who left the do coin team in 2015) stated that. “Dogecoin has not been implemented a new function is developed anymore, it will eventually become outdated, Palmer no longer participates in DogeCoin, but his statement raises serious doubts about the life of the currency I will.
Joke status – Can coins that started as jokes be regarded as a really serious investment? Dogecoin is extraordinary in the world of increasingly serious and professional cryptographic infringement. Is it a joke that eventually ends while it experiences wild rides and exceeds all expectations?
Large supply. Dogecoin was originally meant to have a maximum supply of 100 billion coins, but the set limit on the number of coins that can be produced has since been lifted. According to CoinMarketCap, at the time of writing (22/03/2018) the circulating supply of Dogecoin was 113,670,063,569 DOGE. This never-ending supply will likely prevent the price of DOGE reaching astronomical heights.
These factors make Dogecoin a bad investment. But on the other hand, the pros of the Dogecoin that makes it a better choice are –
Availability – If you are new to Cryptocurrency, you are considering building a portfolio of coins and tokens, Dogecoin can be easily used in a wide range of exchanges. This can potentially increase demand and increase public awareness of the legality of currency.
Novelty Value – The value of novelty. In the complex and intimidating world of cryptocurrencies, Dogecoin is fun, friendly and familiar. It enjoys the hype and buzzwords surrounding many cryptographic projects. Looking at the website, it turns out that this project is not so serious. There are strong cultures around popular online memes, and dog coins have a strong foundation that supports supporters.
Established coins – The fact that DogeCoin was released in 2013 and is still around 2018 so it cannot be just dumped. It is a long time in the world of encryption, and DOGE helps to realize legitimacy and reliability not found in other coins.
Community Support – Do you know that you can use Dogecoin to reward other internet users quickly and easily. It is common for Reddit and Twitter users to “tilt” a small amount of DOGE to authors of fun posts and insightful posts. This not only rewards people making good content, it also helps spread the awareness about this unique digital currency.
The Dogethereum Bridge – In February 2018, Dogecoin featured in TrueBit, one of Ethereum’s ongoing scalability projects. In a test called “dogethereum bridge”, Dogecoin was sent to Ethereum’s Rinkeby test net and became a distinct asset on that separate blockchain.