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Is Dogecoin A Good Investment?

Is Dogecoin A Good Investment?

Last year Dogecoin (DOGE) saw its price jump into a new record-high territory after a one-word tweet by Elon musk. But with a pullback in Dogecoin price, many investors are wondering if DOGE is a buy right now.

Dogecoin has been a “free and fun” competing cryptocurrency since its inception in 2013. With huge patronage by well-established investors such as Elon Musk and Mike Cuban as well as hype from celebrities (Gene Simmons and Snoop Dog), is the coin destined to soar to new highs?

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On Monday, March 1, 2021, the Dallas Mavericks announced that DOGE will be accepted as payments for tickets and merchandise.

Up 3,200% on a 1-year basis, Dogecoin has surpassed well-known companies such as Avast Antivirus, Healthcare Trust of America, New York Community Bank, Hankook Tire, Park Hotels & Resorts and Shell Midstream Partners in terms of market capitalization (as per data retrieved from Company Market Cap website).

Is Dogecoin an asset that can attain the same status as Bitcoin, Ethereum, Litecoin and Binance Coin in terms of trading price?

On Monday, March 1, 2021, CoinFlip, the largest network of Bitcoin ATMs in the United States, tweeted that “Fans of DOGE can now buy the cryptocurrency with cash at any of its 1,800 locations nationwide”.

Dogecoin provides the same decentralized financed support as other competing altcoins, what makes it so special and what unique benefits does the coin provide its users which have seen it soar in price and popularity in 2022?

Dogecoin has fast transaction and confirmation speed as well as low transaction costs. The asset was designed based on existing cryptocurrencies, Litecoin (LTC) and the now extinct Luckycoin (LKY).

As a result, the developers of the crypto coin mirrored the same features of these coins onto their creation.

Because of this, DOGE uses the same consensus protocol SCRYPT technology in their proof-of-work (POW) algorithm and not SHA-256 which is being employed by Bitcoin.

SCRYPT was designed with the intention of providing a system that does not have to fall into the demands of custom hardware solutions which are employed in Application-Specific Integrated Circuits (ASICs).

With the SHA-256 algorithm, everyday users of personal computers cannot become a part of a coin’s miners. The reason is that the hardware system was tailor-made for the mining of Bitcoin (BTC) and the only way anyone can become a miner is to get the hardware system or join a mining pool.

Dogecoin mirrored Litecoin just like LTC mirrored BTC but it has also found its own uniqueness. Evidently, DOGE’s implementation can be differentiated from Litecoin by several parameters.

LTCs block time is 2.5 minutes while DOGE’s block time is 1 minute. This means that in terms of transaction speed, DOGE is 250% faster than LTC.

Full confirmation for the digital coin can take a maximum of 6 minutes, while LTC takes 15 minutes and BTC takes a whopping 30 minutes.

Being so fast in terms of transaction and confirmation, lovers of this cryptocurrency can use it to securely and quickly send money to anyone anywhere in the world.

The fast transaction speed has led to an increment in the usage of the coin’s network thanks to its accessibility in terms of mining which has seen more vendors accept this token as an option of payment. Many cases of people using computers from their academic institutions and workplace to mine the crypto asset have been discovered.

According to Wallet Investor, “There will be a positive trend in the future of Dogecoin”.

The technical forecast website is of the belief that investing in DOGE now is a good idea because it will remain stable throughout 2022 and end the year with a trading price of $0.44 and could reach $1.12 in 2025.

Digital Coin Price sees Dogecoin DOGE as a profitable long-term investment that will be trading at a price of $0.29 and $0.37 in 2025.

Another factor that makes DOGECOIN a great investment is its extensive usage on diverse cryptocurrency exchanges and brokerages worldwide.

The digital coin can be used in trading physical as well as tangible items on online communities such as Twitter and Reddit where users have extensive chats and arguments about currency-related information.

Popular cryptocurrency exchanges and platforms where Dogecoin can be traded are Coinbase, Coin Switch, Binance and eToroX among others. These are exchanges that receive huge daily trade volumes.

Such high trade volumes are essential for market analysis. As a trader or investor, this data informs you as to the high demand and renewed interests in cryptocurrencies by consumers after the Covid-19 market crash.

Many investors are using crypto as a hedge against unprofitable or risky investments. The demand includes Dogecoin of course.

Dogecoin has also been used for payments in the adult industry, poker industry and surprisingly, was once listed as an option of payment for a real estate property as far back as 2014.

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Dogecoin As An Option Of Payment For Real Estate

A man by name Matt Thompson decided to sell his home for this meme-inspired currency. As an entrepreneur, Matt has been selling gadgets and games online for several years.

At the time, Matt felt he had never sold any product or item of value and perhaps his Wisconsin Vacation Home will be the first valuable property to sell for $135,000 cash.

Unfortunately, Matt’s listing could not result in any leads and this is where he decided to turn to DOGE as a form of payment as he saw great potential in the digital coin. The price of the house when converted from fiat (USD) to crypto was 100 million dogecoins.

As a result of the popularity of the coin and its extensive usage, Matt Thompson further went on to say that “I could use the proceeds of the sale of the property to further my business. I sell video games and their accessories and with the coin’s ease of use, I have been able to buy and sell inventory from diverse places in the world such as China, using the digital currency”.

His reason was that it was safe and easy to use as a result of minimal fees. To date, he continued, “I have found it to be extremely good for supplementing payment methods”. Matt’s story first appeared on the online portal, Cable News Network (CNN).

The DOGECOIN community is strong and helps finance important events. Before the Sochi Winter Olympics held in Russia, funds were raised through DOGE to send the Jamaican bobsled team and Indian Luge contender to compete in the games. More than $30,000 was raised for the two causes.

Such acts of generosity through charity have gradually cemented the crypto’s place in the minds and hearts of fans as a cultural currency that can be used to support less fortunate groups in society.

“Cryptocurrency is really powerful and instead of locking it up for a few people, let’s get everyone in the world on it”, are the words of Dogecoin Foundation’s Ben Doernberg.

According to the European Business Review (EBR), “Given its growing user base, popularity on the internet, love affair with celebrities who are trying to help push the price to new all-time highs and worldwide adoption, Dogecoin may breach the $1 target by the end of 2022”.

According to Trading Beasts, Dogecoin is likely to reach $0.21 in November 2022. It will be trading at a minimum price of $0.18 and a maximum of $0.27 in the last month of the year.

DOGE will trade within a price range of $0.27 and $0.28 in 2022. Dogecoin will be valued in the range of $0.24 to $0.30 in 2023. The analyst further opines that DOGE will have a trade price of $0.32 at the end of 2024.

Dogecoin’s popularity has been reflected in its market capitalization and trade volume. As at the time of writing, DOGE has a market capitalization of $20,822,396,467 with a trade volume in the last 24 hours of $1,192,243,809 and is ranked number twelve (12) on the global markets for cryptocurrencies.

DOGE’s market capitalization is larger than other altcoins and tradable tokens such as PancakeSwap, DASH, Tron, Yearn Finance, Compound and SushiSwap.

With all the hype around Decentralized Finance (DeFi) and its protocols pushing Ethereum (ETH) and Binance (BNB) to new all-time highs in 2021, DOGE has done well by surviving the competition and improving in price since several altcoins have gone bust.

It will only be sooner rather than later that DOGE will fall into the top 10 ranking cryptocurrencies in terms of market capitalization.

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What Is Dogecoin?

On the cryptocurrency’s official website, Dogecoin is a decentralized, peer-to-peer cryptocurrency that enables you to easily send money online. Simplistically, it is internet currency.

Like all cryptocurrencies, it was created to serve as a payment system which is instant, fun and free from traditional banking fees.

Derived from Litecoin’s blockchain, the cryptocurrency uses blockchain technology and this makes the ease of transferring funds directly between individuals and business organizations effective.

DOGE, unlike other cryptocurrencies, has a huge fanbase (loyal community of supporters) who use the coin especially on social media (Twitter and Reddit) as a tipping currency.

The digital coin features the face of a breed of hunting dogs from Japan, called Shiba Inu.

Its ticker symbol is DOGE and Ð is its symbol.

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Who Created Dogecoin and When Did It Start Trading?

Software developers Jackson Palmer and Billy Markus are widely credited as the creators of Dogecoin.

The main proponent of the cryptocurrency is Jackson Palmer, a product manager who worked at Adobe Incorporation’s Sydney office in Australia.

He created Dogecoin in 2013 as a fun currency due to the hype and momentum cryptocurrencies were getting as a result of parent crypto, BTC and other altcoins such as LTC making waves in the financial investments space.

According to Investopedia, “sceptic analytic” is the phrase that is normally used to describe Jackson Palmer as a result of his keen observation of the emergence of blockchain technology and his urge to get in on the action.

Not knowing the buzz which will soon surround his creation, Palmer used social media platform (Twitter) to poke fun at his digital currency until positive feedback from fans led to the purchase of the domain, dogecoin.com.

The creation of dogecoin coincided with the digital currency creation dream of Billy Markus, a software developer at International Business Machines Corporation (IBM) in Portland, Oregon who wanted to add his creation to the altcoins in the decentralized finance stratosphere.

Unfortunately, Markus’ attempt was not achieving any fruitful results after several promotion efforts until he discovered a meme-inspired currency trending on social media.

Jackson Palmer received an extensive software development call to create a real coin (called Dogecoin) by Billy Markus which he accepted.

Billy Markus decided to create a DOGE cryptocurrency that could reach a wider demographic (that wanted to stay free of fiscal policies about money from central governments globally).

Since Bitcoin (BTC) could not reach a lot of people in terms of mining as a result of its reliance on the longstanding SHA-256 proof-of-work algorithm, this meant only a group of people with computers that are compatible with ASICS will have the opportunity to contribute to transactions and block creation. This was taken note of by Markus.

With a feature of “slow transaction speed” associated with the algorithm, Markus decided to opt for a relatively easier way to get more people involved in mining and so chose Litecoin’s SCRYPT algorithm.

SCRYPT has helped provide the coin with a distinctive feature of fast processing speed and confirmation for transactions through the use of DOGE.

Billy Markus has kept dogecoin in competition for over seven years when coins which had great innovative products fell into the category of “dead coins” because of low patronage by investors.

He studied the crypto world extensively and has been able to add a great asset which is changing the way many people go about payments for certain goods and services

Dogecoin was launched on 6th December, 2013 after over a million visitors paid homage to the domain (Dogecoin.com).

Why Was It Created?

Like all cryptocurrencies, Dogecoin was created to help its users send money to anyone no matter their location in the world over an internet network in a quick and secure manner.

Developers of the coin (Billy Markus and Jackson Palmer) had an intention of creating a cryptocurrency that was not only an alternative to BTC and LTC but one which is more friendly and approachable.

Such an approach has been highly invaluable with regards to the accessibility of its mining process which has seen huge support from the internet community.

Dogecoin Community donates tokens to be used in charitable projects which have brought enormous popularity to the digital asset and the team behind it.

Many crypto lovers and market analysts believe such acts of generosity associated with the coin confirms the availability and sustainability of the project.

Where Was It Created?

The idea of a creation of a meme-inspired currency was conceived in Sydney, Australia and has its first fans through the domain (dogecoin.com) which was also created in the same country.

How Many Dogecoins Are In Supply?

There are 131,692,128,947 DOGE in circulation which is the same as the total supply of coins on the market.

Dogecoin: Will It Be A Good Investment In 2022?

Dogecoin to several investors is a cryptocurrency which was created and looks like a joke but has a lot of pros which is worth considering.

It has thrived on its fanbase to compete with other altcoins in the past but mainstream adoption from credible institutions show the potential of the coin’s growth in the long term.

The fact that DOGE is going to form an integral part of the Ren Project on Ethereum 2.0 where it will be used as a stablecoin ($DOGEO) which will serve as collateral in DeFi products sees the progress of the coin into the decentralized finance space.

Adoption by global sports giants in the NBA as an option of payments means there is more room for growth of the coin in terms of its usage by other individuals.

This boosts the image and public acceptance of the coin since its price will not be determined by only its lovers (Dogecoin Community) who are always creating a buzz on social media with the hope of increasing its price.

Such growth in institutional usage will sink into the crypto asset’s price patterns which makes DOGE a coin worth your money in terms of investment.

Like all investments, there is a risk versus reward factor, so thorough research must be done before any form of investments can be made. You must weigh the potential rewards as against the possible consequences of risks.

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What Drives Dogecoins Price?

The price of Dogecoin will soon soar as a result of mergers and partnerships with credible institutions.

At the start of 2021, Dogecoin (DOGE) became available on Ethereum 2.0 network as part of the Ren project.

Ren Project (officially known as RenVM) is a secure network of virtual computers which powers interoperability for decentralization applications (DAPPS) and also enables cross-chain lending, exchanges as well as collateralization.

The Ren project has recently partnered with OpenDAO. OpenDAO enables real-world assets such as real estate, bonds and stocks to be used meaningfully in the Decentralized Finance (DeFi) ecosystem via a transparent, secure, trust minimized, permissionless and automated protocol. Open DAO is owned and controlled by its token holders.

Partnership with Open DAO has led to the launch of renDOGE stablecoin as announced on Open DAO’s official website. This allows holders of DOGE to convert it to renDOGE and from renDOGE TO DOGEO stablecoin on Open DAO’s application.

This has been simplified mathematically as,

Dogecoin + Ren + Open DAO = $DOGEO Stablecoin.

The stable coin ($DOGEO) can be used for Decentralized Finance (DeFi) products such as loans by serving as a collateral.

Chief Operating Officer (COO) of Ren Project, Michael Burgess has shed insights as to how far the cryptocurrency has come thriving on its friendly and approachable appeal by stating that “With another first for RenVM, Dogecoin is no longer a meme coin; it is now a viable financial instrument in its own right, thanks to RenVM and OpenDAO”.

Such strong appeal has transcended to more cryptocurrency exchanges making the coin available for trading.

FTX added DOGE for spot and futures trading and WazirX added the coin for spot trading on 13th January, 2021. Trading of DOGE can also be done at OKEx and Bitfinex crypto exchanges.

Another factor that is driving the crypto is the adoption of the digital asset as an option of payment by the Dallas Mavericks (National Basketball Association).

Chatting with Deal Book (a section of New York Times which discusses how business intersects with culture and policy) on Thursday, March 4, 2021, owner Mark Cuban made it known that “My basketball team and I decided on this because we can. Sometimes in business, you have to do things that are fun”.

Fans of the Mavericks can use DOGE to pay for tickets and merchandise through crypto merchant service provider Bitpay which will go on to increase its usage not only in Dallas but in the whole basketball space.

Its reach and popularity will also soar through the roof since the NBA is extremely popular and is third to the National Football League (NFL) and Major League Baseball (MLB) in terms of revenue.

Major crypto ATM operator CoinFlip announced on Monday, March 1, 2020 in a statement by Chief Executive Officer (CEO), Daniel Polotsky said that “Given its growing popularity and recent mass adoption, we are dedicated to making sure that dogecoin is a part of our portfolio of coins, and encourage further support of this cryptocurrency in the coming months”.

Traders and investors are in luck as everyone can buy DOGE with fiat currency at any of CoinFlip’s 1800 locations across the country.

Dogecoin, like all cryptocurrencies, experiences high price volatility. The crypto asset has done extremely well thanks to a thriving community of investors to outlast almost all the early derivative altcoins.

To be precise, DOGE leapt 3,200% by the end of 2021. What is so important for every investor to note is that the digital asset has increased 25,315.44% in price from a trading price of $0.000232 in 2013 to its current price of $0.14.

An asset with extreme cultural backing such as dogecoin is very difficult to value when compared to other cryptocurrencies and financial assets.

DOGE is here to stay and with mergers and adoption has a huge potential of reaching new all-time highs in the not-so-distant future.

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So, Is Dogecoin A Good Investment?

Dogecoin certainly has a lot of pros that many other cryptocurrencies do not have. The fact that it is faster than both Litecoin and Bitcoin and is getting adopted as such, means that there is a lot of room for growth in Dogecoin and that usually translates very well to the price of DOGE making it a good coin to invest in.

Being adopted by a brand like CovCare is a huge announcement to how far the meme-inspired currency has come. This is because CovCare in February 2021 surpassed 100,000 placed orders.

As the second phase of the pandemic rages on with social distancing protocols at its core, several individuals may have to jump at the opportunity of using the cryptocurrency to purchase personal protective equipment (PPE).

CovCare views the adoption of DOGE from a strategic standpoint. According to the medical supply company “This is a chance to apply radical changes to how the healthcare industry operates”.

As a result of the number of people who need PPEs coupled with the buzz around the coin, there is going to be a huge spike in the number of people using DOGE to pay for supplies and help protect thousands of citizens from contracting the virus.        

Additionally, dogecoin is accepted by over 1000 companies across industries such as crypto, business, gambling, internet and hospitality.

Popular among these companies are global leader for cryptocurrency payment processing (Coin Payments), clothing and fashion company (Park and Finch), communications company (ScrybaSms), online games platform (Playhub Casino), trading and investment services company (Quantum Investment Limited) and online security network (WPSec).

Others include travel, leisure and hospitality websites (Trippki, Greitai, Clube Turismo) and sportswear uniform and accessory companies (Xtreme Spirit & Partner Brands).

This comes with a high usage rate of the coin and this takes into effect the laws of demand and supply. The more demand for a product to be used as an option of payment, the higher the price of that particular asset, and in this case, DOGE.

Dogecoin is a fun cryptocurrency that has made its way into decentralized finance through its stablecoin ($DOGEO) on Ethereum, sports (partnership with Dallas Mavericks) and has been adopted as one of the options for one of the leading companies in terms of medical supplies (CovCare).

It is worth investing in DOGE because it is cheap and will thrive on its usage as well as its fans to move its value in the long term.

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DogeCoin Price Predictions For 2022 And Beyond

According to CoinPedia, the Dogecoin price will compete with other peer cryptocurrencies in 2022. Analysts at CoinPedia believe that “The DOGE coin may even go up in terms of ranking and hit the highest level at $1 by the end of 2022”.

The DOGE digital asset may begin 2022 with a trading price of $0.17 and if it manages to attract the attention of marketers and it’s adopted by more well-established institutions, could reach up to $1. With support from all the major influencers, Dogecoin may hit $0.50 by the end of that year.

With certain developments and collaborations such as Ren and Open DAO in decentralized finance projects, CoinPedia feels DOGE may reach $4.123 and a high of $7.833. Facing several market turbulences and resistance, the coin may end 2025 with a trading price of $5.497.

One of the eminent bloggers on Steemit, Zakaria M., has opined through his blogs that dogecoin will be worth the price of range of $1 to $10 in 5 years time.  

Dogecoin may reach $15 with major integrations and partnerships and has a great potential of outperforming other cryptocurrencies in the market by 2030, is the prediction of Coin Switch.

Should I Invest In DogeCoin?

It is very much worth investing in Doge because not only is it a good and smart choice in the crypto space for its differences, It’s also a coin that is on the very lower side now. This means that there is room for it to hit a higher price.

The buzz around cryptocurrencies and their extensive patronage is not only related to gains and profit margins.

On the whole, as dogecoin has demonstrated, crypto lovers are excited about innovation, freedom of expression, the ability of having a choice and changing what seems to be broken.

Dogecoin is relatively faster than Litecoin and Bitcoin in terms of payment processing as a result of its accessibility. This is highly essential as it solves the scalability issue which is associated with the use of blockchain technology.

There are several companies that have made plans to adopt blockchain but had problems with its slow processing speed which, fortunately, cannot be associated with DOGE.

With credible institutions such as Dallas Mavericks and CovCare certifying the coin as safe and efficient for its business operations, several companies will follow suit and this will in the long term contribute to an increment in coin’s price.

Cryptocurrencies are highly volatile but considering a purchase of 100,000 DOGE will set you back $5,000, investing in this digital asset comes at a relatively cheaper price when compared to other competing coins.

Looking at the current integrations and partnerships and adoptions DOGE started 2021 with, it will be extremely interesting to have the asset on your portfolio for the long term and see where it will take you.

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