Dogecoin is currently one of the hottest cryptocurrencies, and its value has risen from $0.002 last year to around $0.27 currently, which is a massive rise of over 13,000% in just over a year. Many Dogecoin investors hope that its value will go to $1, making them millionaires.
However, Dogecoin isn’t as technically interesting as Bitcoins or Ethereum. It is updated occasionally, with a new version coming out after several years. Consequently, Bitcoins see a more regular update.
Dogecoins do not have a cap in supply, with millions of them created every day. It is inherently inflationary and may not see a high rise in value, unlike Bitcoins which have a supply cap. It makes Dogecoins unsuitable for a long term investment as you cannot store value with them.
The future of Dogecoin depends on how much people are willing to pay for a cryptocurrency with a cool dog as a logo. It has seen several wild swings and has even lost 40% of its value in days making this cryptocurrency unsuitable for the fainthearted. Yes, Dogecoin can go to $1, and it can also go to zero because it doesn’t have inherent value.
Dogecoin returns are staggering, and its market capitalisation currently exceeds $50 billion. However, most of its value is from hype and misinformation and celebrities who endorse Dogecoins, notably Elon Musk, the founder of SpaceX. In the long run, Dogecoin needs to offer investors value, which is where it fails to deliver.