In this article, I’ll explain will Dogecoin have a price spike like Bitcoin in 2022. I’ll also explain how it works and what is the difference between Dogecoin and Bitcoin. Finally, we will also discuss when to buy Dogecoin, Doge’s possible future sustainability, and also its supply.
Without further delay let’s jump into the article directly.
What is Dogecoin?
Most people might be wondering what a dogecoin is, so in 2013 two people, Jackson Palmer and Mr. Billy Marcus. Palmer gave him the name Doge using a then-popular meme in which the word Doge was intentionally misspelled to describe a Shiba Inu dog.
Doge actually started making fun of Bitcoin. In its early days, a group of enthusiasts organized a publicity stunt that led to the Dogecoin profile.
Today, Dogecoin is on its way to the moon and exploding in value and has gained over 5000% in 2021. The richest man in the world has also helped Dogecoin explode when he calls it his favorite cryptocurrency.
Related: 7 Important Dogecoin News For All
How Does Dogecoin work?
It is a cryptocurrency that works on blockchain technology and is similar to Bitcoin and Ethereum. Most people might be wondering what blockchain technology is a very secure digital ledger that stores all transactions made using a decentralized digital currency.
All Dogecoin holders maintain an identical copy of the blockchain ledger, which is frequently updated with all cryptocurrency transactions and all cryptocurrencies; the Dogecoin blockchain network uses cryptography to keep all transactions very secure.
Dogecoin can also be used for payments and purchases, but it is not a very effective store of value. Instead, the blockchain rewards miners for their work, which creates a large amount of Dogecoin every day.
Related: Apecoin Price Prediction 2022-2030
Will Dogecoin explode?
As never expected, Dogecoin has reached $0.7. This creates hype among people
and attracts lots of users to Dogecoin. Elon Musk is the important person behind
the price hike of Dogecoin. Many people doubted it and thought of selling it, but to
their surprise, it broke all myths.
The result was that not only Elon Musk, but many big-shot companies, announced
their official acceptance of Dogecoin as a means of payment. The world-famous
AMC theatre accepts Dogecoin for ticket purchase. Fashion brands like Gucci also
accept it as a payment method. Though it is a meme coin, it is now changing into a
utility coin because of its wide acceptance among people and the world market.
Many people think that Dogecoin has no room to grow, but most analysts say that the potential is not over and will grow in the future. As there is no lifetime limit to the amount of Dogecoin that can exist. Millions of new Dogecoins are launched every day. As a result, there is minimal incentive to hold your cryptocurrency for long.
Historically, Dogecoin’s value per coin has been very low, hovering around $0.003 per coin for most of 2020. People were more likely to give it away. Earnings from Dogecoin in 2021 may not be much, but cryptocurrency tips and donations will continue to remain to be seen.
Should You Buy Dogecoin?
So people still think that if they buy Dogecoin, most people who buy back Dogecoin in 2020 have been very well rewarded. So why are people still a bit concerned that they should buy Dogecoin and the answer is yes because it still has great potential for the future.
There is minimal risk, but still lower than any other popular cryptocurrency. We buy any cryptocurrency for a short period of time. We advise you to buy Dogecoin for the long term as it has a very high future potential.
Circulating Supply of Doge:
The supply of Dogecoin and Bitcoin is different. Given that their tokens have many differences, this shouldn’t come as a surprise. While Bitcoin has a limited supply of 21 million coins, Dogecoin has an unlimited supply. In simpler terms, Bitcoin is scarce and there will only be 21 million BTC while the supply of Dogecoin will continue to increase indefinitely. They initially had a limited supply of 100 billion; However, that all changed in 2014 when Dogecoin’s creators decided that would make its supply unlimited.
This makes Bitcoin a deflationary currency and Dogecoin an inflationary currency. The Dogecoin team has been looking into this issue and there is speculation that Dogecoin may start burning coins to reduce the overall supply. At the time of writing this article, there is about 131 billion DOGE right now and 18.8 million BTC in circulation currently.
Dogecoins vs Bitcoin
Both cryptocurrencies are very similar, but there are some significant differences between them. First Bitcoin, it’s much faster and more accessible for miners to complete the math equation that completes and records the transaction, making Dogecoin a bit more efficient for processing payments.
It takes 10 minutes to ratify new blocks on the Bitcoin blockchain. Despite this, Dogecoin only takes a minute, which makes Dogecoin very special. Another notable difference between Dogecoin and Bitcoin is the lack of a lifetime limit on the number of doge coins created, as we mentioned above. Instead, Bitcoin has a lifetime limit of around 21 million bitcoins that can also be created. This means that miners are forced to work much more complex and tedious overtime to earn bitcoin.
In this article, I have explained the history of Dogecoin, how it became famous and how it exploded over the years, thanks to Elon Musk. We also share that if you buy Dogecoin, it will be one of the best cryptocurrencies in the coming years. We recommend spending some time with your research and then skipping to the end for maximum benefit. I personally advise you to DYOR -Do Your Own Research before buying crypto and just invest what you can as a small saving and not your entire savings.
Do have a look at the above blog again and also consider my other related crypto blogs to have a better view on investing in this coin, do share this valuable investment option if you find it useful and do leave your thoughts on this blog’s comment section.
However, I leave it in your hands whether you ultimately decide to buy Dogecoin crypto or not as it is a personal investment choice.
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