in Dogecoin (DOGE)
- Dogecoin Future: 7 Reasons Why DOGE is Worth Keeping an Eye on
- 1. Dogecoin as a Store of Value
- 2. DOGE’s Low Price Makes Buyers Think That It’s “Cheap”
- 3. Dogethereum
- 4. It’s Not Hard to Understand
- 5. Vibrant Community
- 6. Merchant Adoption (You Can Buy Things With Doge)
- 7. Fairly Accessible and Liquid
- Dogecoin Future Price
Dogecoin Future: 7 Reasons Why DOGE is Worth Keeping an Eye on
When you see a cryptocurrency with a cute and fluffy Shiba Inu as its mascot, it can be hard to take seriously. But that’s exactly what you get with Dogecoin (DOGE).
While most might write off DOGE as a joke (it was created as one, after all), there’s 7 reasons why the future of Dogecoin might be brighter than you think.
1. Dogecoin as a Store of Value
Believe it or not, very credible crypto analysts have come out and said that Dogecoin is a potential store of value (SoV) asset. Yes, that puts DOGE in the same category as SoV assets like gold and increasingly Bitcoin.
Crypto analyst and investor Willy Woo said in a very popular Twitter thread that Dogecoin has held its value against Bitcoin relatively well over the years. In other words, over the years, Dogecoin has experienced whatever gains Bitcoin has in USD since Dogecoin's value in BTC has remained relatively stable.
This is in contrast to many altcoins (crypto assets that aren’t Bitcoin), which usually see their price chart look something like this:
On the other hand, altcoins like DOGE, Litecoin (LTC), and a few others have held their value relative to BTC like so:
To be an oscillator like LTC, XLM, and DOGE, an altcoin needs to keep up with Bitcoin’s price gains relative to the US dollar. In order to see if an altcoin is doing that, you can plot the altcoin’s Bitcoin value like in the chart above.
The altcoin’s value in BTC must oscillate or swing back and forth around a horizontal line for at least one full Bitcoin market cycle (~3 years of Bitcoin’s price going up, followed by a year of it going down).
This is important because if the altcoin's BTC value is relatively stable, that means whatever gains BTC makes in USD, the altcoin does, too. This is due to the fact that most altcoins are priced in BTC.
While Dogecoin isn’t guaranteed to last and maintain its store of value properties, it has a decent shot of doing so. According to Woo, Dogecoin benefits from the “Lindy Effect”, which is a theory stating that the longer a non-perishable thing, such as an idea or technology, has been around, the more likely that it will continue to stay around.
Dogecoin has been in existence since December 2013, which is impressive in the fast-moving world of crypto, where most crypto assets die out quickly. There are very few popular crypto assets from that era that are still around today - at least with the same level of prominence.
The select few include the likes of Bitcoin and Litecoin, which are considered mainstays of the community.
Therefore, while you might think that a crypto asset needs cutting edge technology to be valuable, Woo’s thread shows that cryptos like DOGE are ultimately monetary instruments that build value with economic network effects (the more people that use it, the more valuable it becomes).
Besides, even if Dogecoin doesn’t keep its value relative to BTC in the future, at least 1 DOGE will be worth 1 DOGE right?
2. DOGE’s Low Price Makes Buyers Think That It’s "Cheap"
Another thing that might help DOGE’s popularity in the future is its low price point (currently a fraction of a penny).
Many people who get into the crypto space usually do not have much, if any, investing experience and are looking for the “next Bitcoin”. Often times, a low price can signal to these types of investors that there is a lot of “room for growth”.
In reality, a low price can just mean that there is a large coin supply, which results in a lower price for each individual coin. The market capitalization (market cap) is a better metric to take into consideration. The market cap of the asset (asset price multiplied by the number of assets in circulation) can still be high relative to other assets even though the asset price still seems “cheap”.
For example, DOGE might have a very low price, but it is currently ranked #30 out of nearly 5,000 crypto assets when it comes to market capitalization due to its large coin supply.
For a great example of what a low price can do for a cryptocurrency, look no further than the 2017 crypto bull market. In the span of a month, low-priced cryptos like Nano (then known as Raiblocks) increased in price by more than 100 times, which is unheard of in investing. DOGE, too, saw its price shoot up about 85 times from March 2017 to January 2018.
Another exciting development in the Dogecoin space is Dogethereum. As of now, Dogecoin is just used for payments. Ethereum, on the other hand, is a programmable crypto asset. It popularized the idea of smart contracts, which allow developers to use blockchain technology to create self-executing contracts made of computer code.
A popular use case of smart contracts is the initial coin offering (ICO). This allows companies to raise funding for projects without middlemen like investment bankers. This of course saves a lot of money and time spent on paperwork, effectively allowing companies to get their ideas off the ground more easily.
Yet, what we just mentioned only scratches the surface of why ICOs are significant and what smart contracts can do, but smart contracts basically make crypto assets much more useful and expand their utility way beyond just payments.
Dogethereum, then, wants to make it so that people can use Dogecoin with Ethereum smart contracts. Ethereum’s smart contract technology was a huge factor in catapulting it to the top ranks of crypto assets, right under Bitcoin, the #1 crypto asset by market cap. Now can you imagine what kind of benefits that bringing this kind of technology to DOGE could do?
4. It’s Not Hard to Understand
Another reason Dogecoin’s future might be bright is because unlike other crypto assets, it’s pretty accessible and easy to understand. In fact, Dogecoin was originally created to reach a broader demographic than Bitcoin, which isn’t always easy to understand for everyday people.
Meanwhile, Dogecoin piggybacks off the popular “Doge” Internet meme, making it more familiar and welcoming for those who aren’t necessarily super technical (e.g. Bitcoin and Ethereum are quite technical).
While Dogecoin is technical in the sense that it is a cryptocurrency - largely based off Litecoin - and has all the associated impressive technological advancements that come with that, many people just see the cute Doge meme, immediately recognize it, give it a chance, and see that magic Internet money with a picture of a cute dog can be used for things like Internet tipping.
In fact, tipping with DOGE on social media platforms, such as Reddit, is one of the more popular uses for Dogecoin.
5. Vibrant Community
Another thing that Dogecoin has going for it is its community.
The Dogecoin community is quite active and has even done things like fundraising:
- During the 2014 Sochi Winter Olympics, the Dogecoin community raised $30,000 worth of DOGE for the Jamaican bobsled team, which qualified for the event but couldn’t afford to go. Thanks to the DOGE community and efforts of other fundraisers, the Jamaican bobsled team was able to attend the 2014 Winter Olympics.
- The Dogecoin community raised $30,000 of DOGE to build a well in Kenya for World Water Day.
- In March 2014, the DOGE community raised $55,000 worth of DOGE to sponsor NASCAR driver Josh Wise, who raced in a Dogecoin-themed car as a result.
Due to the Dogecoin community’s active presence, including positive charitable activity, Dogecoin has more visibility than other crypto projects. The charitable activities in particular combined with Doge’s cute and friendly image could attract newcomers to the space, who might be intimidated by other crypto assets, which are less familiar and might not have as positive of an image.
6. Merchant Adoption (You Can Buy Things With Doge)
Believe it or not, you can buy a surprising amount of things with DOGE, including but not limited to:
- Web hosting
- Cleaning supplies
- Hot sauce
- Portraits of your pet
Here are some sites with directories of merchants that accept Doge:
7. Fairly Accessible and Liquid
Lastly, Dogecoin is fairly accessible - there are many places where you can buy Dogecoin, such as Exodus.
(Exodus allows you to exchange other cryptos for DOGE. If you don't have crypto, buy BTC first using services like Cash App or Coinbase before exchanging for DOGE in Exodus).
Dogecoin is also supported by many wallets, such as the Dogecoin official wallet (Dogecoin only) and Exodus Dogecoin wallet (100+ crypto assets, easy to use, allows you to exchange cryptos from your wallet without an account, can use DOGE on desktop and mobile, and offers 24/7 support).
And for the whales, or should we say “Big Doges”, DOGE is a fairly liquid asset, meaning that you can buy or sell relatively large amounts of DOGE without the price being significantly affected.
Dogecoin Future Price
Now for the golden question, what is Dogecoin’s future value?
Anyone telling you with 100% certainty that they know the answer to that question is with 100% certainty lying!
However, something to keep in mind is that at its peak in January 2018, DOGE had a market cap of $2 billion. As of writing, the market cap is about $250 million. Could Dogecoin hit a $2 billion market cap again? This would mean that the price would multiply 8 times from where we are now by going from ~$0.002 to ~$0.017.
We can’t know for sure, but the next cryptocurrency bull market will likely have more participants and more investment as a result. We say this because the number of blockchain wallets is roughly doubling each year:
Considering that the market will likely be bigger than in 2018, could the Dogecoin market cap even surpass $2 billion (meaning that the price of DOGE would multiply by even more than 8 times)? Who knows - that’s the million DOGE question.
So does Dogecoin have a future?
Well, considering the things we mentioned, such as:
- Dogecoin being a store of value
- Dogecoin being attractive to new investors due to its low price
- Dogecoin being easier to understand than other crypto assets
- Dogecoin’s vibrant community
- Dogecoin’s merchant adoption
- and Dogecoin’s accessibility as well as liquidity
We’d say so. In fact, its future might even be quite bright!
If you’re looking to get your hands on some DOGE or need a Dogecoin wallet, download the Exodus DOGE wallet:
- It’s free, supports 100+ cryptos, and is easy to use
- It works on desktop and mobile
- It allows you to exchange DOGE for other cryptos or vice versa, right from your wallet
- It syncs your DOGE across devices so you can manage your DOGE both at home and on the go
- It even has a 24/7, fast, human support team
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.