Crypto sceptics are quick to point out absurdness in crypto space. One of the first projects they take aim at when explaining how ludicrous crypto is, is Dogecoin. From their perspective, there is no clear blockchain use case for Dogecoin (DOGE). To explain, people base Ethereum’s value upon its widely used blockchain platform where you can issue new tokens, run dapps etc. EOS, TRX are used similarly. Make sure you survive the altcoin flood by diversifying your income, you can learn more about that here.
You use bitcoin for payments, litecoin for a bit faster payments, Monero when you want to obfuscate your money movements – but when do you use Dogecoin?
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Dogecoin’s propoenents will tell you that its value is as a payment cryptocurrency. However, that use is questionable because Bitcoin offers a similar product that can be used for some commercial transactions.
From a monetary policy perspective, Dogecoin has an infinite inflation as there is no limit to the amount of it that can be produced.
So what keeps Dogecoin among the top cryptocurrencies for all this time?
The DOGE itself is actually really great for use with its low fees and fast confirmation times – on average about 1 minute to process a transaction on the next Dogecoin block. So it does well what it claims to do: being a payment coin. However, considering the history of money and the process of how an asset becomes money (going through the phases of store of value, medium of exchange and then a unit of account) – it seems that Doge stands tiny chances of winning that race.
What propels Dogecoin?
Community like no other. The culture in Dogecoin is just on another level comparing to other coins: atmosphere is relaxed, there are no factions infighting, there are no contentious splits. Just a bunch of users making each other laugh, organizing charity projects and enjoying the fun ride Doge enabled them to be part of.
You’ll find numerous Shibas out there who enjoy the novelty of DOGE and also the fact that its actually a really solid product.
Relative to the technical value of money, the dog’s cultural and humanistic sentiment has earned it a lot of users’ hearts, many fans, and it has done a lot in marketing and promotion in the country. There will still be some speculative space in the future.
DOGE may appear at first glance to be a dumb meme-coin, but if you take a moment to appreciate it for what it is, it is a well executed technology, with a dedicated community and long history of surviving in the hectic blockchain industry, completely against the odds. And this is the exact reason why Doge will make it to the other side once the biblical altcoin flood strikes and drowns 95% of the current market.