Six Reasons Why Dogecoin Has Intrinsic Value
Find out why Dogecoin is one of the most popular cryptocurrencies in the market.
At A Glance:
- The joke cryptocurrency has seen a colossal rise since the beginning of the year.
- Dogecoin has seen considerable coverage in various social media platforms due to notable price hikes and continuous celebrity endorsements.
- The Dogecoin community is growing at a rapid pace, making this a good time to buy DOGE.
- The cryptocurrency has more developer funds than any other altcoins, making the Dogecoin market much healthier.
2021 has been a tremendous year for several cryptocurrencies, especially Dogecoin (DOGE). Although DOGE was on a rollercoaster ride, the crypto was up almost 12,000% since January, which is incredible gains for a meme coin. Dogecoin runs on blockchain technology, similar to Bitcoin. Its blockchain is a distributed, secure digital ledger that stores all transactions processed using a decentralized digital currency.
This infamous coin eventually won investors’ trust and found its place on several major cryptocurrency trading platforms in 2021. Let us see six main reasons why Dogecoin has intrinsic value.
Dogecoin - From A Joke To A Phenomena
Dogecoin is no more a mere joke cryptocurrency but has positioned itself as a potential investment option.
Dogecoin was created as a lighthearted cryptocurrency for fun and to make laymen aware of blockchain technology. The coin has a picture of the Shiba Inu Japanese breed dog, which soon became a social media phenom. This meme cryptocurrency was designed by two software engineers Billy Markus and Jackson Palmer.
Palmer once joked about combining two of the hot topics of the internet, cryptocurrency and Doge. After investing in Dogecoin, he tweeted, “pretty sure it’s the next big thing.” This tweet gained the attention of several people on the internet, and they started talking about Dogecoin. He maintained the joke by buying the Dogecoin.com domain and further added a photoshopped Shibe on a coin.
While Billy Markus, who was working as a software engineer at IBM, saw a note of Palmer on the domain. Though he tried to get in touch with Palmer after failing to hear from him, he started working on Dogecoin. He employed Bitcoin’s source code for creating Dogecoin and changed few features. This is how the meme cryptocurrency came into the crypto market.
But today, Dogecoin ceases to be a joke, thanks to social media and celebrity endorsements. Investors and traders slowly started recognizing the potential of DOGE as an investment and transactional currency. Its massive adoption has led to the price of DOGE hitting new highs in 2021. Now let us explore why Dogecoin has intrinsic value and is a good investment option today.
1. Significant Features
Dogecoin is a good buy, not merely because of the hype and popularity, but its significant use cases and features.
Dogecoin is a lighthearted and authentic community built on top of a cryptocurrency infrastructure. It remained on the fringes as a joke cryptocurrency for many years and was traded for less than a penny. But the meme coin has surpassed many giant cryptos, and DOGE raised to meteoric heights this year.
Today, Dogecoin has several significant features that make it unique from other meme coins. Just like any other cryptocurrency, Dogecoin’s blockchain network also employs cryptography to secure all transactions. Apart from that, it has near-zero transaction fees, which make DOGE a suitable mode of payment. It is also often used as a tipping coin for content creators across social media platforms like Reddit, Twitter, Facebook, etc. It also allows user-specific access to data on the blockchain by employing both public and private keys.
Furthermore, Dogecoin has a faster transaction time compared to Bitcoin. It takes only one minute to confirm new blocks on the Dogecoin blockchain, while the latter takes almost 10 minutes. Therefore, Dogecoin was adopted by several users and merchants across the globe due to its easy transactional nature, skyrocketing the price of DOGE.
2. Inflationary Cryptocurrency
The inflationary nature makes Dogecoin a unique cryptocurrency in the market.
Unlike other cryptocurrencies, Dogecoin has an unlimited supply. Bitcoin and several other cryptocurrencies are deflationary in nature and have a hard supply cap of currencies. But rather than trying to beat inflation, Dogecoin depends on it. Even if the DOGE value drops, the coin can still be mined. These newly mined coins will eventually replace the lost ones and maintain a steady supply of about 100 million active DOGE tokens.
DOGE is known for its transactional nature and is treated more like fiat currencies. Therefore, this mechanism works well for Dogecoin as it is widely accepted as a viable mode of exchange worldwide, leading to mass adoption.
3. Vibrant Community
DOGE is an attractive investment asset thanks to its vibrant and active community.
A significant driving force behind the success and popularity of DOGE is the Dogecoin community. The Dogecoin phenomenon was somewhat like GameStop's Reddit-fanned trading frenzy.
Due to its increasing popularity, the meme crypto gained cult status on Reddit’s WallStreetBets message board. The Reddit users started sending each other DOGE as a token of respect or affection, boosting its adoption and pushing DOGE’s value higher. The Dogecoin enthusiasts had promised to propel its value “to the moon”. Anyhow, the continuous exchange of currency on the platform drove Dogecoin’s popularity and helped in expanding its user base.
Apart from this, the Dogecoin community was also proactive when the coins were stolen in a hacking attack in 2013. They instantly launched a fundraiser program to replace all the stolen tokens, and with continuous efforts, the funds were replaced by February 2014. Therefore, the ‘SaveDogemas’ campaign and the Reddit community highlights people’s trust in this cryptocurrency, making Dogecoin one of the best community-based investments.
Check Out: How To Make (Or Lose) Money With Dogecoin
4. Popularity Among Celebrities
The continuous hype and support from celebrities and millionaire investors have made DOGE one of the most popular cryptocurrencies to buy this year.
One cannot ignore the continuous endorsement from celebrities and millionaires via their social media platforms when talking about Dogecoin. The crypto has been the hottest topic of discussion on Twitter and other platforms since the beginning of 2021. It became popular through several Doge memes shared by numerous celebrities.
Among its boosters is Tesla CEO Elon Musk, who called Dogecoin his favourite cryptocurrency and named himself the Dogefather. A series of tweets by Musk about the value of the token has skyrocketed the price of DOGE to the moon. Musk also named Dogecoin the people’s crypto. The SpaceX CEO further promised to plant a physical Dogecoin token on the moon.
Several other celebrities also hopped on to the bandwagon and expressed their support for Dogecoin as well. Some of them are Mark Cuban, rapper Snoop Dogg, and rock band Kiss’s bassist Gene Simmons. These endorsements encouraged people to buy DOGE since it was cheap and popular.
Furthermore, on July 25th, Musk gave Dogecoin another boost by tweeting a meme that promoted Dogecoin as a currency rather than just a form of investment. Also addressing the future of Dogecoin, Musk shared his idea of upgrading Dogecoin to increase transaction rates and reduce cost, to enhance its potential.
5. Increasing Adoptions
The increasing adoption rate will significantly drive the price of Dogecoin to record highs.
Today, multiple companies and merchants across the globe accept DOGE as a viable mode of payment. For example, earlier this year, the Dallas Mavericks, owned by business rogue Mark Cuban announced that the team would be accepting Dogecoin as payment for tickets.
Moreover, leading communities like high-end car dealership Post Oak Motor Cars, luxury resort company the Kessler Collection, and Latvian airline airBaltic also added DOGE to their accepted payment methods.
Philip Gradwell, the Chainanalysis chief economist, said, “Exclusive on-chain analysis of dogecoin shows it is currently being adopted by new investors at a level not seen since the late-2017 bull market, with new investors increasing their share of supply from nine percent in July 2020 to 25 percent in August 2021.”
Additionally, CoinFlip, the cryptocurrency ATM operator, added Dogecoin to its network of 1,800 terminals across the US, boosting its adoption and pushing DOGE’s value higher. Further adding to its resurgence, the token is also a payment method for the largest provider of crypto payment services, BitPay.
Read Also: Will Dogecoin Make Me Rich In 10 Years?
6. Recent Updates
New updates to the blockchain network would make Dogecoin a good buy now.
Although there weren’t any significant improvements or advancements in the Dogecoin blockchain network, the “Dogecoin Developers” Twitter account recently announced the 1.14.4 release for all users. This was specifically meant for miners.
Billy Markus, co-founder of Dogecoin said, “It’s most useful for miners to download the update because they are the ones who put transactions into the blocks they mine.”
It is a minor update but introduces some practical improvements to the cryptocurrency. Some of the enhancements include:
- Promoting lower fees to attract more users to the network
- Reinforcing synchronization time up to 2.5x to enable faster transactions
- RPC ‘getpeerinfo’ improvements
- GUI options to add peers and import private keys, and thereby offer peer traffic visibility
- Enhanced network security
These small yet significant updates will push the token’s value higher, making DOGE a potential investment option.
Dogecoin is mainly driven based on trading fundamentals, popularity in social media platforms, and acceptance in large corporations. Experts say that if this hype continues to sustain, Dogecoin will likely explode by the end of 2022. Since the crypto has already outperformed several major coins with its significant rally, this could be the right time to buy DOGE.
That said, investing in any cryptocurrencies should be a decision made with due diligence and research rather than impulsively.
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