Dogecoin to $1? No Jokes – Know the Facts today!
Will Dogecoin reach $1? Well, If you are accumulating Dogecoins speculating that it will reach $1, then you should know the factors that would prevent it from reaching such highs. In short, the answer is “Rarely, or a Big No.” Dogecoin might hardly be worth $1 in the future even though it is backed by a strong community and is used by thousands of Crypto users to send micropayments.
There is not just one particular reason for this, but the assumption is based on several other factors. There is no denial of the fact that Dogecoin has a lot of support from several Crypto veterans and active development as many Web and Mobile apps are integrating the currency into its platform. But will Dogecoin reach $1 hallmark? Let’s find out
Dogecoin Started as Joke Currency
On a serious note, this coin started as a joke. The coin founder, Billy Markus, created it out of the fun. There was not a central idea or a solid team behind the project. The developer had his inspiration from an internet meme and wanted to create a coin out of it. Upon its release, speculation drove the price, and the project didn’t have any use case in the beginning. There was not a whitepaper either, and the developer introduced the currency without any solid backing from venture capitalist to increase its influence in the Crypto circle.
Supply in Billions
Supply is one of the major factors for determination of Cryptocurrency prices. Largely many Crypto coins are deflationary; this means their supply tends to reduce over time until all of the coins in the protocol are minted. In comparison, Dogecoin is an inflationary cryptocurrency. Although Dogecoin’s inflation in terms of percentage decreases while its amount increases, this still doesn’t give the coin a green signal to touch $1 mark. Any increase in demand is likely to meet with the supply coming into existence from the process of mining. Hence, there is also no hard cap for Dogecoins that will exist.
In other words, If the supply of any coin is in billions, it will prevent the price from reaching new highs, especially $1 mark. At the time of writing this post, the circulating supply of Dogecoin is 118,001,264,037 coins. If somehow, one Dogecoin was worth a dollar this would mean market capitalization of $118,001,264,037 for Dogecoin. That is almost twice of current Bitcoin market cap and reaching such a position is mind-boggling. Thus, an infinite supply is likely to withhold Dogecoin from reaching $1 mark in the future.
Already among top 50 Crypto Currencies
Dogecoin is already among the top 50 Crypto Currencies while writing this post. This makes Dogecoin harder to compete with its competitors and surpass them in market cap. Just for thought, ever wonder what it would like to have Dogecoin dethroning Tron or other interesting Cryptocurrencies project?
This is not something impossible, but of course, it needs significant efforts and hard work. In years to come, Dogecoin is likely to struggle for its dominance among the top 50 cryptocurrencies as the Crypto sphere evolves into a better and healthier landscape.
So, will we see Dogecoin reaching $1?
As an end note, much is possible in Cryptocurrencies. Speculation, hype, and strong affiliation to third parties can greatly impact a coin’s price. We all know how the market performed during the earlier bull run, leading Altcoin prices to reach new highs. But this certainly doesn’t mean abnormal fluctuations in the market and Dogecoin reaching $1 would only mean loss of influence for many Crypto projects in terms of market capitalization.
Did we miss something? Or are there any misstatement you need to point us out? Let us know in comments or maybe you can read about Dogecoin Future
Disclaimer: This is just an opinion and should not affect the user’s decision