Everyone’s eyes are on the Doge now! The question is, how far will the price of Dogecoin go? Will it touch 50 cents? Read the article to find out more.
Dogecoin, although has been in the news just recently, is still one of the oldest cryptocurrencies out there. Bitcoin was started in 2009, and Dogecoin began circulation in 2013.
A lot of coins came and vanished since then, but Doge has continued to stay relevant and in fact, become viral in recent times. Dogecoin is one of the cryptocurrencies with the least volatility out there.
The coin has a large following and an ever-increasing community can be compared to the scale of Bitcoin and Ethereum. Note that the success of any cryptocurrency depends on how many people buy, invest or hold it.
With so many users being added to the world of Doge every day, the chances of the coin failing and vanishing are minimal.
Will Dogecoin Hit 50 Cents?
To begin with, a lot of people are skeptical about the price of Dogecoin rising because it is inflationary. What this means is that the coin has an unlimited supply, in the order of 5 billion new coins every year.
The supply is too high and the demand, as of now, although is increasing, is not being able to catch up with the demand. But this does not mean the prices of Doge will never rise. It definitely will, but maybe in a more controlled manner.
50 cents is a very realistic prediction for the price of a Dogecoin. Therefore, yes, the price of Dogecoin will touch 50 cents and some experts believe that it must happen by the end of 2022. Let’s do the math.
At the time of writing, there are around 130 billion Dogecoins in circulation. According to estimates, about 5 billion new coins are being added to the Dogecoin network every year. If the price of each coin is $0.5, then the total market cap should be $70 billion.
Compared to the market cap of Bitcoin and even Ethereum, this market cap is too small. Therefore, it is very achievable.
Although Dogecoin just started as a joke, once it became popular, people began to invest and trade with it in the hopes that it will stay relevant in the future too.
But it might also seem that the developers deliberately kept the unlimited supply because they wanted Dogecoin to eventually become one of the mediums of everyday transactions.
Well, why not, because Dogecoin has several advantages which makes it better than Bitcoin in many ways. Here are some:
The block time for Bitcoin is 10 minutes, and for Dogecoin is just 1 minute. This makes the transactions through Dogecoin extremely fast. Dogecoin is, therefore, 10 times faster than Bitcoin.
Secondly, there are plenty of incentives for miners too because they will always get a block reward of 10,000 Doge when they successfully mine.
The mining effort is also realistic and even amateur miners can begin with a good enough machine. On the other hand, Bitcoin is becoming increasingly hard to mine, and once the supply cap of Bitcoin is reached, miners will have no other incentive than transaction fees for their mining efforts.
Lastly, the transaction fees of Dogecoin are extremely cheap compared to Bitcoin. It is due to the above factors – the inflationary nature and the faster transaction time.
Conclusion
Yes, Dogecoin value has touched more than 50 cents already at its peak. Given the rising interest in the coin and the advantages to keep it strong during the long run, it is a no-brainer that the coin will touch 50 cents consistently. Even the math says so, the market cap required by Dogecoin when it is valued at 50 cents, is extremely gettable. Expect the price charts to read $0.5 anytime soon!
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