Dogecoin Optimism and Critique
What is Dogecoin?
Dogecoin is an altcoin. Altcoins are all crytocurrencies other than Bitcoin. Dogecoin has had some interesting attention. As many already are aware, it began as an elaborate joke. Now, Dogecoin has become a big player in the world of digital currencies. Dogecoin is also easily one of the most recognizable cryptos. It may not be Ether nor Bitcoin Cash... yet, but it could be a grave competitor in the future!
What is it worth?
In 2014, one Dogecoin was equal to less than $0.0004 United States Dollars (USD). In January of 2018, Dogecoin reached a high worth of above $0.01 USD per Dogecoin. That is to state that, from 2014 to 2018 there was an increase of more than 2,400%. Cryptos have a tendency of such fluctuation. Dogecoin has, at times, drastically decreased in value as well. However, it is this great flux in value that fascinates me. The cryptocurrency market is a very new one, and it has already made some people very rich. There are no promises in this market, and huge losses are just as possible as gigantic gains.
What will it be worth?
Of course, no one knows and money shouldn't be invested that can't be spared. That being said, here is a hypothetical. Let us consider the possibility that Dogecoin will one day reach the same high as Bitcoin. The two currencies function very differently, but the potential could be there. No one really knows. But, if one Dogecoin did one day equal $20,000 USD, as Bitcoin once nearly did, then 50 Dogecoins would be worth one million United States (US) dollars! As of the moment of my writing this article, 50 Dogecoins are worth less than $0.20 USD.
Do you own Dogecoin?
The pessimistic problem
Dogecoin is different in some ways to Bitcoin. That being said, there is no guarantee whatsoever that the altcoin Dogecoin will ever reach even more value than one dollar per one Dogecoin, let alone see the kinds of rises that Bitcoin saw. I am hopeful, but still very optimistic. No one knows the future of any investment plan. If that was the case, many more people would be very rich. For such reasons, a diverse portfolio can be key for investors.
An interesting coin
Regardless of where Dogecoin continues to go, this digital currency has come a long way from a joke to an item of interest to many investors. At the moment, there exist various formats to store Dogecoin, including multiple wallets for storing the digital money. There is even a kind of wallet called a "paper wallet" for the coin! Communities online are very much a live in regards to the Dogecoin conversation. Even if Dogecoin doesn't increase significantly in value, I doubt it will be leaving us any time soon.
Is it competition for Bitcoin?
For the near future, I do not suspect that Dogecoin will have anywhere near the same value and usage as Bitcoin. However, as Bitcoin gets closer to its maximum supply (the number of Bitcoins to be in circulation is limited), Dogecoin may surpass Bitcoin in digital coin trade. There do exist only a limited number of Dogecoins, but there exists no coin cap at the moment (like the Bitcoin cap). This same lack of limitations could keep Dogecoin from rising in its value. To be fair, other variables could manifest to increase the worth of the altcoin. We have seen Dogecoin's value fluctuate, so an increase still seems possible. Dogecoin, and all of cryptocurrency and blockchain for that matter, is an incredibly new phenomenon. We need to watch and speculate over the whole occurrence much more before any forecasts can be made with any accuracy. And, even that could be many many many years away from us.
Will Dogecoin rise significantly in value?
© 2018 Alexander James Guckenberger