You must have heard a lot about cryptocurrency since last year. Many new unique names of currencies would have come across your hearings and you must be wondering what they are? Indeed, crypto has revolutionized the modes of payment worldwide. Cryptocurrency is the new form of currency that can easily be exchanged with commodities or services online. It is a digital form of currency that is secured by cryptography.
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Cryptocurrency, as a whole, has grown massively during the past year due to the increase in investments. But the most surprising growth was that of Dogecoin, which grew up to 13,000% during the last 12 months. It is why among all the coins, Dogecoin has a standout right now and has managed to grab the attention of many popular people like Jeff Bezos and Elon Musk. Since Dogecoin is a cryptocurrency and does not have any physical value, it gets hype or gains value when people talk about it and invest in it.
We know it will be a difficult decision for you so we will analyze the current situation of Dogecoin and let you know whether investing in Dogecoin is recommended or not. At the end of this article, you will be able to decide if it is too late to invest in Dogecoin or not.
Reasons for Recent Downfall of Dogecoin
The sad reality of any type of cryptocurrency is that it lacks real-world utility and that is because it is not accepted among most merchants and businesses. But even if a company accepts crypto as a payment, it prefers Bitcoin over Dogecoin because it has more value.
It will take much more time for Dogecoin to become widely accepted and as valuable as Bitcoin or at least Ethereum. Many other cryptocurrencies possess more energy than Dogecoin but Bitcoin and Ethereum are way ahead of Dogecoin because they do not use too much energy. Moreover, the developers of Ethereum coin are also coming up with an updated technology this year called Ethereum 2.0. This technology will use much less energy than Dogecoin which will give it a lot of advantages over Dogecoin. So, one of the main reasons for the downfall of Dogecoin is its heavy use of energy. The other secondary reasons for the downfall will be discussed in succeeding paras.
But the question that arises is whether Dogecoin is reliable? As we have seen during the past month that Dogecoin faced a downfall, it can never be guaranteed that it is 100% reliable. The most popular cryptocurrencies like Ethereum and Bitcoin also face downfalls but that does not imply that these currencies have no future. Similarly, Dogecoin cannot retain a specific permanent position. The price of Dogecoin has decreased by almost 40% in mid of May and hopefully, it will increase shortly.
So, the question arises: is it still safe to invest in Dogecoin in the hope of its future hike? Let’s take a deeper dive to get to know a little more about Dogecoin.
What is the Future of Dogecoin?
The mindset of investors has changed with time, people are more pumped to invest in cryptocurrency. Do you remember the days when treasury bonds were used? Those days are gone now, it is all about investing in cryptocurrency it seems. During the initial days of Bitcoin, it faced severe backlash. None of the companies or businesses were ready to accept it as a payment (except some extremely intelligent and innovative companies). People thought Bitcoin was a supernatural phenomenon that does not exist in real life. Now after a few years, Bitcoin is the top-selling cryptocurrency in the world.
No one would have even imagined that bitcoin will rise this much higher. And now, half of the world regrets why they had not invested in bitcoin years ago. Similar can be the situation of Dogecoin. Right now, few people think of it as a joke and who knows, in the future it may cross many other high-ranking cryptocurrencies. Many hopeful people believe that after some time Dogecoin will be accepted widely worldwide and whosoever is not investing in it right now is at a loss.
Cryptocurrency, as a whole, is very speculative so it is impossible to predict its future. No one can guarantee that cryptocurrency will still survive after 10 years or not. If we are uncertain about cryptocurrency we can also not be sure about Dogecoin. It is just a game of luck at this point, everyone willing to take a huge risk in their life can invest in Dogecoin. But it is better to buy some crypto at a cheaper price which will give you lesser loss in case of any mishap.
It is safe to say the future of the Dogecoin is better as compared to other cryptos because the name is very famous in the media owing to many obvious reasons. It is successfully attracting millionaires and billionaires to its new technology called blockchain.
While investing in Dogecoin, you should think about the pros and cons of overall cryptocurrencies. Try to figure out whether you can trust it in the long-term growth or not. It would be a long-term investment and you should not hurry if you want to gain some profit from Dogecoin. Be patient, this coin will give some good news someday.
8 Reasons to Invest In Dogecoin Now:
- Future Growth:
Some analysts around the world have predicted that Dogecoin will soon become equal to the value of $1. The value of Dogecoin will certainly increase with time as it is already the 24th cryptocurrency with a market value of $279 million.
Dogecoin is still categorized as an affordable cryptocurrency due to its lower rate, some people say even the lowest of the dogecoin is not a huge loss to investors because it will rise ultimately someday.
Cryptocurrency depends on sheer luck for a person who has a very limited idea of these forms of currencies. So, what would be better than investing your money when it is still affordable and could gain profits after a few months? Since Dogecoin has huge potential for success, it will have increased its market value in no time and it will give you a reasonable profit. So, the future growth of Dogecoin is somehow confirmed.
- Does Not Get Affected by Media:
Not being affected by the media hype is the definition of a stable and worth investing cryptocurrency. Dogecoin does not fluctuate due to media hype which is an important factor in its success. It is a stable cryptocurrency due to which it has a defined audience which is ultimately increasing the usability of Dogecoin.
The currencies which get affected by any harsh or good news in the media are never safe or reliable. Moreover, any good or bad event on social media badly hampers the growth of any cryptocurrency. But, as this currency is not taken seriously by most of the world, it is least affected by any happenings around the world. The value of Dogecoin increases or decreases due to the content provided in the entertainment industry because it is a people’s currency.
Dogecoin is popular to have a cold life following, whereas, it is mineable and its token circulation is also limited. The financial experts advise you to wait longer so that you benefit from cashing cryptocurrency in a hypersonic situation. So, once again it is reiterated that you invest in dogecoin and have a lot of patience to wait for the hike in it.
Since there is less involvement of the media in Dogecoin, it gives more confidence to investors that they can invest their money without too much risk. Thus, Dogecoin is a perfect fit for the investors and has a positive impact on the new adoptions which implies this coin is less intimidating than others. The popularity of cryptocurrency directly affects the price so this is the right time to invest in Dogecoin.
- Popularity on The Rise:
Dogecoin is quite famous worldwide as the name of this currency can be seen at many places on the internet with the name of famous people like Elon Musk. Dogecoin is continuously being featured in print and social media in good as well as bad news.
Investors of cryptocurrency usually invest in currencies that have low prices per token. It is one of the main reasons for Dogecoin’s rising popularity. Beginners who do not have much to invest in start their crypto business by buying Dogecoins. Subsequently, owing to a higher number of people buying it, the rate of Dogecoin is gradually rising. So, due to many reasons, this is becoming famous in the eyes of new investors which is also giving an advantage to professional investors.
- The Creation of A Meme:
Dogecoin was created as a meme by two software engineers to form a payment system that does not involve the banking hassle. But now in 2021, the market capitalization value reached 85 billion dollars which is the 4th largest cryptocurrency according to the market capitalization.
The main aim of Dogecoin was to provide better liquidity to its users and help them use this form of payment on popular e-commerce websites. This unique and interesting history of this coin has made it famous worldwide due to which it is among few cryptos which are known to everyone. Soon, when Dogecoin will get widely accepted across the world we will get to see the aim getting fulfilled.
- Survivor:
Despite many extreme conditions of the cryptocurrency market, Dogecoin has managed to survive which is why it is known as Survivor. Dogecoin is a meme-based cryptocurrency that was not taken seriously at the start. It was neglected for a long time because people did not notice it. But it became popular when successful billionaires like Elon Musk started promoting it as a good potential cryptocurrency. Their support led to the growth of that cryptocurrency and slowly has reached a good point where people have started investing in it. So, the survivor is now on the verge of becoming inevitable.
- Easy To Buy And Sell
Another reason due to which Dogecoin has gained popularity is the simplicity to understand that specific cryptocurrency. Dogecoin is also available on various platforms like four sets and micro wallets. Through these platforms, it is extremely easy to buy and sell Dogecoin with very less service charges. The user-friendly and easy-to-understand nature of Dogecoin forces new investors to invest in it. Dogecoin is a liquid form of cryptocurrency as compared to other cryptocurrencies.
It is also equivalent to a larger coin in transfer utility and is easy to understand as the interface is also easier than the other cryptocurrencies. Other cryptocurrencies are not easily understandable as they are not as liquid as dogecoin and cannot be used for day-to-day transactions on a digital platform.
- Best For Beginners:
Anyone having zero knowledge of cryptocurrency can easily invest in Dogecoin due to its usability. Even without any knowledge of technology, one can manage Dogecoin platforms. It can be managed by anyone who has just started investing in cryptocurrency mining.
Dogecoin is faster than any other popular cryptocurrencies like bitcoin. It does not involve large transaction times and thus is better for beginners to use. We can say it is simple to use as it was created as an ideology to be used as a normal currency and is used as an exchange medium on many digital platforms.
- Current Low Price
Currently, the exchange rate or price per token of the Dogecoin is very low which means that you can buy more tokens by spending less amounts. Subsequently, it will earn you more profit by even a small rise in the future. It will be dependent on whether you want to wait more or sell all your coins on any hike. You cannot buy a huge amount of bitcoins due to their very high value but you can buy a huge amount of Dogecoin by spending a few Dollars. Since Dogecoin is low in price, many people are investing in this cryptocurrency to get maximum profits in the future and it is gradually increasing in value.
Will Dogecoin Continue Growing?
When we say Dogecoin lacks real-world utility and possesses much more energy than other coins, are other cryptocurrencies as a result a good decision to invest in? Despite all of its drawbacks, why is Dogecoin increasing at a faster pace? It is because of the popularity of Dogecoin among many celebrities. Elon Musk and Mark Cuban promoted Dogecoin on their social media accounts that resulted in a huge increase in value of Dogecoin. Due to the promotion of Elon Musk, investors massively invested in the coin and Dogecoin’s price went to the moon within days.
According to analysts, this kind of immediate growth does not last long because it is unsustainable.
Dogecoin has a lot of potential to rise, as it has already surprised people in the past. If Dogecoin continues to improve its technology and solve its issues, it can surely go up. Right now, however, it involves immense risk to invest in Dogecoin because of its downfall.
So, what to expect now? A bright future awaits Dogecoin if it becomes successful in updating its technology. Though it is still up for sale and can be bought easily.
Should You Invest in Dogecoin Now?
If you are capable of predicting the future of crypto then you probably already own a chunk of Dogecoin. Despite all the advisors saying the opposite, if you still took the risk of investing your money in Dogecoin then you should be proud of yourself and pat yourself on the back. Because you did the right thing.
When you invest in Dogecoin, it is not primarily about the money but is about being part of a bigger venture.
There is a huge team of retail investors of Dogecoin and it is their amulet at the value of $0.01 to $1.
However, many analysts around the world recommend people to not invest in Dogecoin right now, as there are many uncertainties about it and we should not take any risk. But, a bigger risk can be the one if you do not invest in it right now, the regret you could have and in the future, because Dogecoin has risen to the limits of the skies. Who knows? Maybe this is the future of this crypto.
Conclusion:
Dogecoin has undoubtedly seen tremendous growth during the start of 2021 due to which many people around the world have started investing in this currency. It is specially promoted and affected by the support of Elon Musk who regularly keeps tweeting about Dogecoin. He motivates the investors to invest in this cryptocurrency.
The simple modes of buying and selling Dogecoin are highly suitable for beginners who are just starting to invest money in cryptocurrency.
Dogecoin is comparatively less risky than other currencies which are new in the market. So, if you are a beginner, you should probably invest in Dogecoin first.
However, experts of crypto believe that diversification in your portfolio is the key to success. Since investing in a single coin is riskier, it is recommended to invest in more than one coin to get the maximum profit!
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