Owning DOGETop Risks and Poetential Rewards
TOP RISKS / DOWNSIDES
- DOGE is a crypto and as a crypto its price is strongly correlated with the crypto market. A general fall of the crypto market would most likely affect negatively the price of DOGE
- Blockchains are fastly developing and the trend is to offer the possibility of hosting and executing smart contracts on its networks. Doge coin is derivied from bitcoin source code and it does not offer smart contract possibilities.
- Price is still way too volatile, daily swings of 10-20% are normal. That means that even if this cryptocurrency rises in price you might experience significant temporary drawdowns.
- GitHub DogeCoin open source project has not been maintained a lot for the past years which is a bit weird, but since 2021 developers have started to work on it again. That shows a bit of a lack of interest of the high tech comunity.
- DogeCoins current supply is huge and much bigger than the bitcoin supply (+130 billion Doge vs 20 million btc, without counting the daily increase due to mining)
- Many Doge Coins are concentrated in the same wallets. Those Doge Coin big holders could easily drop the price if only sold an important amount of Doge Coins.
- DogeCoin is too dependent on Elon Musk actions as in 2021 he is the main supporter. Saddly, DC, could make it only if used in Elons companies, for now.
- Official Web site is poorly designed and lacks on significant information about DogeCoin.
- Unlike modern monetary policies used by central bancs, The Doge Coin does not contract the supply as the economic activity contracts/money demand. Per DESIGN, The amount of Doge Coins in circulations always expands at a decreasing rate via mining.
TOP REASONS TO PURCHASE
- It seems that ELON MUSK likes Doge. Personally for me betting on Doge Coin is betting on Elon Musk using the coin in his companies. At this level only he could make it go mainstream. But the general public does not know yet if he will do so. We only have vague but continuous tweets about DOGE from his account.
- If Elon puts a Doge Coin miner inside every Tesla with a wallet, people could mine(produce doge coins out of nothing) while driving, tip other drivers, pay for their electricity or even for their cars loan. The array of possibilites is big.
- In 2021 Tesla announced that it has invested 1.5 billion dollars in digital assets. We don't know if it's in Bitcoin or DogeCoin.
- Doge Coin uses Less electricity to mine. The mining difficulty of $DogeCoin is lower than this of BTC. So it is more suitable to be installed in a car, as it would consume less battery(Btc is too intensive on electricity consumption)
- Could potentially linked to other Elon Musk Buissenes, like Space X.
- Tesla produces solar plants, so they could be potentially used to mine DogeCoins.
- Solar Roofs could also be used as miners. Your house mines, your car mines they are many options here. The question is if you mine doge with your car how would you spend them in what? Sattellite internet for example?
- Unlike BITCOIN and some other cryptos, Doge Coin is currently very cheap and affordable by the public as per unit/coin.
- Doge Coin is inflationary now but not forever (4%-5% per year but decreasing overtime, and one day it would reach inflation rate close to 0%), it raises at a fixed rate by 10.000 coins every minute / 600.000 coins per hour / 14.400.000 per day/ 5,256 billion per year.
- DogeCoin is faster to mine compared to bitcoin because it uses a different protocol.
- DogeCoin is POPULAR, much WOW! it has made headlines on the covers of many world medias and got tweets from famous Actors, people are talking about it and that is good for it's price
- Read more here - > 2021: The year of The whales Doge Coin Wallets