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Dogecoin value: Why the new currency is the coin of the realm

Despite the inflationary nature, the coin is still exposed to price volatility.

dogecoin on table
Image: FXTM

Cryptocurrency has been long on the market. A lot of changes have been introduced in the last couple of years due to the rapid development of coins. If you’re in the game, you must know current tendencies and future perspectives in the industry. Why should you prefer Doge to BTC? What’s the phenomenon of Doge coins and why are they so popular these days? 

The Phenomenon of Dogecoin: A Promising Perspective in the World of Digital Currency

It all started years ago, but it was Tesla CEO who gave this coin a second chance. Elon Musk is one of the most powerful influencers today. His Tweeter is followed by tons of subscribers who want to keep up with current tendencies in different sectors. Once, he posted a series of tweets about DogeCoin. It was the time people knew that a new coin would win the market. 

You may know a lot about BTC to XMR exchange, but do you know much about Doge? At first, DogeCoin was considered a joke, but we know that it isn’t a joke anymore. More and more people say that this currency will rock the market in the future. However, Tesla’s devotion to DogeCoin is questionable. The company invested in Bitcoin and is going to accept this coin as a currency for official purchases. Though it was first thought to be a joke in late 2013, it now gives all of us promising hopes to win the market of cryptocurrency. 

What Contributed to Dogecoin’s Popularity?

Why do we call it a joke? Let’s get back to 2013 and remind you of the developers of an altcoin. These were two software engineers who based their development on a meme with a Shiba Inu dog. The popularity of the coin is a mere phenomenon. The developers wanted users to try getting into crypto for fun. And now, it is a part of the brand’s identity. 

The community also contributed to the popularity of the coin. They raised thousands of dollars to let the Bobsled Team from Jamaica enter the Sochi Olympics. There was also a charitable movement towards a well building in the Tana river. There were also other donations and charitable services organized by the DogeCoin community to promote its activity in public. 

Why was this meme stuck in the heads of people? It was a fresh breath of air that helped users to look at the crypto anew. It was a remarkable change that shook traders and made them try a new coin, at least for fun. And it worked. 

DogeCoin Currency: Do We Still Deal with the Joke?

What are the deflationary tendencies in the world of crypto? When there’s a coin, it will always stop its existence when a particular number of coins is emitted. It means there’s a limit that can’t be stopped or prevented. In this respect, we may say that DogeCoin approaches fiat more than digital bitcoin. 

Despite the inflationary nature, the coin is still exposed to price volatility. The general thought is that the coin is situated in the hands of monopolist holders. And it may cause certain obstacles to the flow of coins on the market. Despite tons of thoughts on the issue, thorough research is needed to state whether the coin is worth the attention of the public. Is it a good financial tool? Does it have any negative implications on the market? These questions are yet to be answered. 

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