Why is Dogecoin not a worthy investment?

Can you guess the famous meme-based cryptocurrency that was just created in 3 hours? It’s none other than today’s most hyped Dogecoin. Inspired by funny comics shared over the internet, the cryptocurrency has gained more than expected popularity in a span of a few days.

Despite having a huge fan following, investing in Dogecoin is still a matter of doubt. After the massive success of Bitcoin on bitql, followed by Ethereum, XRP, Cardano, a great number of altcoins came into existence. However, not all of them could survive well due to one or other reasons. Luckily, Dogecoin is not only sustained but also has been loved by a majority of people in the cryptocurrency world.

Founded by one famous software engineer- Billy Markus, Dogecoin is a simple, easy, and smooth alternative to Bitcoin. It shares similar core codes as Bitcoin and works on the same smart blockchain platform. Markus did not have full proof plans for making Dogecoin, and he has no reluctance to admit that.

Today, Dogecoin has surpassed over $75 billion market capitalization, quite sooner than nearly all other coins. However, it won’t be wrong to say that Dogecoin is simply the copy-paste of Bitcoin but not as worthy as Bitcoin or other precious metals. It is both quite surprising and pleasant to find out that this Shiba Inu-themed dog would be now compared to the famous cryptocurrencies of all time. As long as deciding whether a dogecoin is a worthy investment or not, have a read on this article.

Worth Of Dogecoin

Initially, Dogecoin was merely worth a few pennies, but who knew it would be real money one day. Therefore, it resembles, to a large extent, in terms of volatility like other cryptocurrencies. It is today the sixth biggest cryptocurrency when compared for popularity, worth, and functionality.

Dogecoin was just every other cryptocurrency unless its price spiked up recently on the first Tuesday of May. At first, the market capitalization of Dogecoin started from $60, experienced various spikes, and ended up at $75 billion. Recently, Dogecoin has experienced variable spikes in both individual price value and market capitalization, which is currently $1 and $75 billion, respectively.

As mentioned earlier, the worth of Dogecoin is influenced by multiple factors, including high volatility. Therefore, Dogecoin experienced an unexcited spike after the tweet of the most inspirational business tycoon of the time- Elon Musk. Many people believe this to be a major reason for Dogecoin’s uncontrollable hype all over the internet.

It was pretty obvious for Dogecoin to come into the limelight after being discussed by famous personalities like Musk and Mark Cuban on the internet. As a result, numerous small and large-scale companies are dedicated to trying Dogecoin as a convenient payment source for their products and services.

Since Dogecoin holds a purchasing value of around $1, it was considered as one of the cheapest cryptocurrencies ever to come into existence. One thing we can be sure of is that Dogecoin is no more a joke but a legit cryptocurrency that’s now supposed to make money for investors.

What do people think about Dogecoin?

Everyone has a different opinion about this meme-based cryptocurrency as Dogecoin has a number of things to attract its investors. Many people still consider it a joke, while others have serious plans to invest in Dogecoin for several reasons.

As per the official white paper of Dogecoin, it’s referred to as open-source, peer-to-peer decentralized digital currency, the famous trillion-dollar bitcoin. Today, Dogecoin is widely used for sending and receiving cross-border payments at various physical and online e-commerce sites. At the time of writing, 1300 businesses have accepted Dogecoin after the strict taxation rules implied on Bitcoin and other high-priced cryptocurrencies. In addition, Dogecoin has also been used as a form of payment for tickets and merchandise.

How is Dogecoin used?

Like the major cryptocurrencies, Dogecoin is also nearly for the same purposes. From investing, making payments, and holding to staking, crypto enthusiasts are quite eager to play with Dogecoin. One thing that sets Dogecoin apart from other cryptocurrencies is its low volatility.

Having a price value of just $1, it has become quite easy and relaxed to stake Dogecoin without much loss of fear money as in Bitcoin. Obviously, it cannot make you wealthy or give you a clear road to becoming a millionaire overnight.

But, Dogecoin is an excellent alternative to expensive cryptocurrencies with major shortcomings like short transaction time. In addition, it is one of the best ways for novice investors to learn the art of investing in the real cryptocurrency market with relatively less risk at the start.

However, investing in Dogecoin is still a matter of concern as not many people believe it to be a trustworthy cryptocurrency. Either it’s because of Dogecoin’s origin or its small price; you might need to be a little more cautious when deciding on Dogecoin.

Despite offering some beneficial features, not many popular cryptocurrency exchanges have wholeheartedly included Dogecoin in the available cryptocurrencies at their exchanges. As compared to bitcoin, Dogecoin has a long way to go and experience some of the best and worthwhile moments in the highly competitive cryptocurrency world. We don’t know if Dogecoin will ever be able to make up to the list of top cryptocurrencies in terms of individual price or soon disappear as the hype comes to an end.

Conclusion

Once a prank but today, Dogecoin has surpassed quite many cryptocurrencies in the list after the proliferation of Bitcoin knock-offs. However, it might not be a wise option for investors to rely completely on Dogecoin by staking huge sums of money.

Instead, you can use Dogecoin as a side investment to diversify your crypto portfolio so that you always have peanuts coming to you. From a meme to today’s one of the successful cryptocurrencies, Dogecoin has a lot more to offer in the cryptocurrency world. Considering these factors, it is your decision if and how to choose Dogecoin for investing, as your one mistake can cost you an arm and a leg in the crypto world.