Despite its humble origins as a ‘joke’ originally designed by two budding software engineers, DogeCoin has a lot of legitimacy as an investment; present and future. In fact, dogecoin might just take over as one of the first cryptocurrencies to recover as early as possible in 2023.
To understand the true value of dogecoin you must first understand the concept of dogecoin as an investment. Unlike Ethereum or Bitcoin, Dogecoin doesn’t bring anything new to the market.
It doesn’t promise a new form of technology backing token production or cybersecurity. In fact, due to being originally designed in jest, Dogecoin is actually an inflationary token as it can be infinitely generated, with 132B tokens currently circulating in wallets. In many ways, this may actually make $DOGE a more sustainable currency in the distant future.
Dogecoin was designed as an offshoot of the P2P ledger Bitcoin model, making the question of ‘how to buy Dogecoin’ just as simple to answer as Bitcoin’s, albeit with some extra steps.
Dogecoin was made to be a fun, casual side project that boomed following a media frenzy thanks to the likes of supporters Elon Musk and Mark Cuban.
These technical factors are some of Dogecoin’s greatest assets for growth. Whilst Bitcoin investors have to deal with high transaction rates and worries of high environmental impact, Dogecoin takes less computational power to mine and has much lower transaction fees. This even answers certain countries’ difficulties with their own currencies.
These factors are becoming more important in crypto as the world takes another look at the market. Following the FTX catastrophe, the community is looking for less impactful tokens. This could make $DOGE a more media-popular token in the future.
Community, in fact, is even more important than technical factors when looking at Dogecoin’s bounceback in 2023. Dogecoin is community-driven; followers of the token enjoy its challenge to the overly serious nature of the finance world. With no intrinsic value to the economy, the worth of Dogecoin is purely symbolic, only really worth its weight in publicity and entertainment.
Before Bitcoin and stablecoins like Tether have a chance to prove their worth to the masses, Dogecoin has a unique benefit. The token also has volatility in any period of uncertainty, rising to a value of $0.14 due to Elon-related community interest before a general collapse in the crypto market.
Despite losing half of its worth in the following days as all the crypto markets reeled in the sharp decline, the coin still fluctuated greatly in the weeks and months that followed. This, amongst other reasons stated already in the article, is good enough for anyone looking to pocket a worthwhile investment.
The truth of the matter is that Dogecoin is not the most stable investment to make, but that may be a good thing. By tracking public opinion and especially its high-value supporters you can find the perfect time to purchase the token and hold on to it for as long as it derives value.
Twitter, for one, was recently bought out by Elon Musk and could potentially increase the value of $DOGE back into the $0.10 range if it is integrated into the website. This integration would introduce the token to another 200,000,000 people who could potentially use the coin to make stress-free purchases on the website.
So, in total, try not to miss out on the next big Dogecoin swing. Even if your investment is relatively small, the potential uptick in price is huge given the climate of the market and the potential future for DOGE as, at the very least, a sustainable payment method in the future.