After all that Bitcoin has brought, the hype surrounding Dogecoin is the new favorite and is attracting the attention of people due to this surge. In 2021, the cryptocurrency reported an enormous growth of up to about 5000 percent and bout four hundred percent of gain within a month.
Due to the sky-rocketed gains, many people rushed to buy Dogecoin.
- The cryptocurrency is the brainchild of software engineers Jackson Palmer and Billy Markus based on the joke surrounding the Doge meme and is considered an alternative to Bitcoin.
- The remarkable meme represents a Shiba Inu dog with a cunning expression and is the official logo.
- Due to the support of some of the most reputed companies and one among them creating specific strategies surrounding the coin, the popularity of the coin is on the rise.
Concerns surrounding Dogecoin:
The initial reaction surrounding Dogecoin was one of amazement. As the cryptocurrency rose from a meme, the reaction was humorous when the digital currency started trading at first.
Quite naturally, the question in everyone’s mind is whether trading cryptocurrency is a good deal. While it is evident through the numbers, a lot of people may find it worth investing in.
Looking back in the past:
Before the advent of Dogecoin, Bitcoin rose drastically and rose to new heights with the same aggression every other day. While the rise to the pinnacle looked similar, it might not be similar.
Bitcoin has long been a reliable cryptocurrency and paves the way for other currencies to rise to fame. Moreover, the security of Bitcoin is more than the other digital currencies.
- The halving of Bitcoin in May 2020 is a phenomenon that lowers the supply of newly circulating digital currency.
- The cryptocurrencies get their value from the underlying projects and most of the digital currencies are associated with the projects present in the blockchain network and dealing with the problems of the real world.
- One of the factors you may want to consider when evaluating cryptocurrency is its availability as the greater is the demand, the lower is the supply and the higher is the price.
You can also read about Dogecoin in Crypto Noticias for better decision-making.
Why must you avoid investing in Dogecoin?
The hype surrounding Dogecoin is far from true and the daily trading volume has reduced drastically from the initial rise. Here are a few reasons why investing in Dogecoin is the last thing to consider.
- One of the biggest reasons why you must avoid stepping into the world of Dogecoin is due to its lack of real-world use, unlike Bitcoin.
- One of the other reasons you must avoid Dogecoin is the story behind it as soon after the creation of the currency, the software developers vanished leaving behind a big void in the community.
- Another reason why this digital currency is no more than social media hype and the retail investors own most of them and not the big institutions.
- Dogecoin is good for short-term purposes and can change at any moment.
If you are still in two minds whether to invest in Dogecoin or not, the digital currency is not among the best stocks that investors need to buy and does not have the differentiation that makes it meaningful as an investment.