From the recent price changes, people are hoping that doge coin will go above 1 USD soon. But lets see how doge coin started and why it is not a stable investment.
When Bitcoin was building up in 2013, doge coin was created by copying the code from lite coin and adding some tweaks to it. It was a joke. It is still a joke.
With Bitcoin created for a purpose to go against the banking system and P2P transactions, Doge coin was never created to get some value and be in the market.
Doge coin is 23000% up this year. It is by far the most growth but one may ask that if it has unlimited supply and still at 20 Trillion coins, why it is pumping so high?
The first reason is the use of Robinhood and free stock trading apps to place commission free trades. Another reason is the social media hype itself where traders are talking about it on twitter and Reddit.
The best example is Elon Musk who is now the number 1 riches man in the world. His tweets have given doge a market hype.
The reason why doge is a bubble is that it is a meme and memes get old one day. The next thing is it’s infinite supply. Another reason is that there are no proper regulations for this coin.
We all know what happens to the trending things. They get old and people get bored.
According to Kiplinger,
Bitcoin started the crypto revolution and continues to offer value from its first-mover advantage and its relative scarcity. Ethereum powers the DeFi, or Decentralized Finance, network removing the need for many existing financial institutions. Ripple, or XRP, uses a different authenticity verification technique than Bitcoin, called "proof-of-stake" as opposed to "proof-of-work" employed in traditional crypto mining.
Dogecoin does none of this. And it adds no driving reason behind its incredible rise to date.
So this makes obvious that doge value is not created due to the fundamental values rather it is only a social media pumping and we know what social media can do as it makes or breaks anything.
Personally I’ll not invest a single cent in doge after this much knowledge. What do you think about doge?
Comment down with your opinions!
Thanks!
@arslan.leo