Dogecoin (DOGE) is not a serious Cryptocurrency

Dogecoin (DOGE) is not a serious Cryptocurrency

Cryptocurrency News
March 14, 2021 by Delnia
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There is no denying the reality that Dogecoin is by far one of the most polarizing crypto projects within the market nowadays. On one hand, many people consider Cryptocurrency as generally being a joke that has long overstayed its welcome; in any case, there also those people — counting many celebrities, business moguls, etc.
Dogecoin (DOGE) is not a serious Cryptocurrency

Who accepts it as a reasonable financial instrument that will adhere around for a long time to come. Or at the slightest. They are leading people into accepting that.

The owner of NBA franchise the Dallas Mavericks. Mark Cuban, as of late expressed that he is reasonably sure that DOGE is here to remain and indeed has the potential to hit a Crypto price point of $1 within the close future. This proclamation comes to a couple of days after the Mavericks began accepting Dogecoin (DOGE) as a form of payment.

He also uncovered that fans were as of now behind this latest payment avenue, and as of March 7, the Mavs had as of now sold 20,000 Dogecoin (DOGE) — roughly $1,018 at press time — worth of merchandise, adding: “If we sell another 6,556,000,000 Dogecoin (DOGE) worth of Mavs merch, DOGE will definitely hit $1.

It is worth mentioning that over the final few months, DOGE’s list of prominent mainstream followers has been developing at a furious pace, with celebrities like Kiss co-lead vocalist and bassist Gene Simmons, previous grown-up film star Mia Khalifa, and American rappers Snoop Dogg and Lil Yachty all showcasing their back for the Dogecoin (DOGE) asset.

In any case, the most unmistakable sponsor of the “meme coin,” by distance, is Tesla CEO Elon Musk, who has been vocalizing his support for Dogecoin (DOGE) through his Twitter account in a huge way for about a year presently.

Is the hype here to stay?

Dogecoin (DOGE), similar to any other cryptocurrency, is dependent on how many individuals embrace it. As a result, who’s to really say that the currency can’t become the “future of money” in case enough individuals were to begin supporting it?

On the subject, Kadan Stadelmann, chief technology officer of Komodo — an open-source cryptocurrency extend and Blockchain solutions provider — told us that opposite to what Cuban and a few other people may accept, DOGE coming to $1 is impossible until some Bitcoin-level buy-ins are seen in the close future.

On a more technical note, Stadelmann pointed out that when one takes into consideration the sum of new DOGE that’s being minted each day — 10,000 per minute/14.4 million per day/5.2 billion per year — the price action of Dogecoin (DOGE) faces some harrowing challenges within the close term.

Besides, 14.4 million DOGE/day or 5 billion/year will soon become a little drop in the bucket, and the Crypto price action will be anticipated to stabilize as the 14.4 million/day today already represents only just over a ~4% supply increase/year of its available circulating supply.

Crypto price hypothesis

Another way to look at DOGE. It Crypto price hypothesis, and its use as a legit financial instrument. As per Stadelmann. Is by looking at the amount of United States dollars it assimilates each day to maintain its current Crypto price action levels against fiat. The token is right now trading at around $0.056. Which needs Dogecoin (DOGE) to have $806K of new fiat in addition to its existing inflow in arrange to maintain its value. According to Stadelmann.

In any case. Johnny Lyu, CEO of KuCoin. Pointed out to the media that he is very optimistic about the future of Dogecoin (DOGE) . Since it’s already one of the symbols of crypto for numerous individuals nowadays. “I won’t be astounded to see DOGE being utilized in hotels. Restaurants or cinemas within the future.” That being said, he accepts that despite its potential. The token is unlikely to break into the best five anytime soon.

Not everyone believes in Dogecoin (DOGE)

Even though DOGE’s later success makes for an astonishing feel-good story. A part of industry specialists is not completely buying into the hype. For example, Stadelmann pointed out that when compared to other cryptocurrencies such as Bitcoin (BTC) and Ether (ETH), institutions are far less likely to receive Dogecoin (DOGE) or other similar coins: “It doesn’t have a story like ‘digital gold’ and isn’t being seen as a store of value.

In this vein. It bears saying that the Crypto price action of coins like DOGE is driven generally by their particular communities instead of by changes within the value of their fundamental technology or use cases.

On the subject, Joel Edgerton, a chief working officer of cryptocurrency exchange bitFlyer. He told the press that coins like Dogecoin are implied to be fun instead of solving real-life issues. Which it has not demonstrated its value just yet, however. “Any resource can reach a certain Crypto price target on the off chance that individuals are willing to pay for it. In any case, that sort of force contributing, without fundamental esteem, is immaculate speculation.”

Where is Dogecoin (DOGE) heading?

DOGE has been on a tear as of late as is made apparent by the reality that over the course of the final 12 or so months. The money has seen picks up of over 2,440%. As a result, it’s worth diving into the address: Where does DOGE’s financial ceiling lie?

$0.20–$0.30 could be a sensible range in this bull run; be that as it may. We have to accept that there’s still a long way for Dogecoin (DOGE) to go before. It also can become anything more than a sort of short-term cultural phenomenon. For starters, it’ll have to be regulated. An aspect that will have a major effect on the currency’s future use and overall potential.

References
https://cointelegraph.com/news/much-fun-no-work-doge-must-ditch-meme…

https://markets.businessinsider.com/currencies/news/mark-cuban-praises…
https://finance.yahoo.com/news/firm-website-breaks-says-mine-174247879.html
https://finance.yahoo.com/news/why-crypto-experts-cant-see-095418017.html

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