What is the most popular cryptocurrency right now? Bitcoin? Ethereum? No, this is Dogecoin. That's right, and one of the culprits was Elon Musk, who is furiously promoting the coin. All this has led to the fact that this asset beats all kinds of price records. After all, this coin was created as a joke. But this year, the cost of this joke has grown by 13,500%. Elon Musk does not miss the opportunity to pump up its value with his statements. As the price rises, investors are increasingly investing in Dogecoin. But is everything so good and does the coin have a future? Not! There are several reasons for this.
Dogecoin Monetary Policy
Dogecoin's monetary policy is very similar to the dollar. After all, we know on what scale the dollar is printed. This year, about 25% of all dollars in circulation have been printed. A completely different opposite is Bitcoin. Unlike the dollar, bitcoin has a limited supply of 21 million coins. Moreover, the emission is carried out according to a previously specified algorithm, which cannot be changed. All this adds value to the first cryptocurrency. How is Dogecoin doing? Everything is sad here. There are now 130 billion coins on the market. And this is not the limit, the number continues to grow. At the moment, the demand for the coin is higher than its quantity. But this will not last forever. The moment will come when there will be more coins. And when supply exceeds demand, the value of the asset falls. This will happen with Dogecoin. This is why Musk's current focus on Dogecoin is critical to sustaining demand. If Elon stops mentioning the asset, who will need it? And then its price will fall to the well-deserved mark - $ 0.
Endless emission
As mentioned above, there are currently about 130 billion coins on the market. The head is spinning from such numbers. But let's see how this happens.
10,000 coins are issued every minute;
14.4 million coins are released every day;
5.2 billion new coins are issued every year.
Dogecoin is a fork of Bitcoin. His blockchain runs on PoW and new coins go to reward miners. But unlike Bitcoin, Dogecoin has no halving. This means that the issue is set at the same level - strictly 10,000 coins. That is, for each new block, miners receive 10,000 coins. Moreover, developers can change this figure at any time. This proves that the minority is more powerful than the majority.
Lack of technical development
After reviewing Elon Musk's tweet for May 14, 2021, it can be assumed that Dogecoin has a developer community. This is not the case, and therefore this asset has no technical development. Back in 2015, one of the developers, Jackson Palmer, was forced to leave the project. He became disenchanted with a community that had become too toxic. At first everything was promising, but then everything took a different path. Since then, the fate of Dogecoin has been in the hands of people who don't care about it. Over the past six years, there has been a complete lack of technical progress. Yes, there were updates, but they are minor and not important. Unlike bitcoin, the code of which is updated almost daily. But the Dogecoin developers make the excuse that there is no reason for important updates. In their opinion, the asset is quite successful and potentially interesting for investors. They say: "Everything works stably, the rules on the network have not changed, there are no risks." If we are to invest in something, then we must know what may await us in the future. Where is the Dogecoin roadmap? She's not there!
44% coins - 10 wallets
Everyone criticizes Ripple for the fact that most of the coins are concentrated in one hand. And what is better than Dogecoin, if almost half of the coins belong to 10 addresses, and a third is on one wallet? This fact should alert potential investors even more. Most likely one of the Dogecoin whales is Elon Musk. It's not for nothing that he worries about the coin ... Imagine if one of these people decides to sell their savings ... What will the collapse of the Dogecoin value be? The same goes for price manipulation. This is especially noticeable for small investors, who for the most part remain the losers from such whale games.
Conclusion
Dogecoin was created as a joke. And it remains a joke to this day. True, this joke is worth 30-70 billion dollars. And this joke can turn into a tragedy for many. Do not give in to the persuasion of important personalities. Even if it's Elon Musk. Despite all his wealth, he has his own interest in this matter. And his interest contradicts yours. And for those who talk about the possible profit with Dogecoin, it should be said that a trip to the casino can also bring a profit.
Source: https://bitnovosti.com/2021/07/01/chetyre-prichiny-bezhat-ot-dogecoin-kak-ot-chumy/
Good article i will inform in my Cambodia group to know about this because i can see they like to trade in this coin.
Why? If it is to trade, that is, to use it as a speculative instrument, Dogecoin may not be bad. But the prospect he has, if holded for a long time, is undefined.
I just bought some....lets see🤑🙄🤪++
We'll see, but I won't take it for a long time😁
Great article with nice idea of you