Is DOGE Worth Investing In?

Since there is not really a lifetime limit on the number of DOGE that can exist, millions of new coins are released on the market each day and there’s very little incentive to hold the cryptocurrency for the long term. BTC continues to rise in value because of the system’s lifetime cap on the number of coins that can be created.

The value per coin of DOGE has been very low around $0.003 per coin for most of 2020 so people were most likely to give them away. The users on social platforms like Twitter, Reddit, and Facebook are also able to use DOGE to reward or tip each other for posting content. The gains that DOGE saw in 2021 may not be sustainable over the long term and whether the crypto’s tipping and donating culture will continue, remains to be seen.

Those who purchase DOGE in 2021 have been rewarded. However, many are still wary about buying DOGE especially as an investment and the constant flow of new coins on the market put unending downward pressure on the coin’s value. There are other additional security risks for DOGE compared to other major cryptocurrencies but it didn’t have the same security and code-level scrutiny that BTC or ETH did. Also, there’s just not a robust mining community around DOGE so the exposure for the mining level attacks is well above that of something like BTC.

Buying any sort of crypto involves risks and that includes DOGE too. It’s worth buying dew coins and learning about them and the systems as you go alone but it is best to refrain from sinking more than the token amount of your money that you earned in crypto. Before investing in DOGE, people have to understand that DOGE is an inflationary coin which means it has an endless supply that keeps on growing faster and faster as time goes by.

Every year, more than 4 billion coins are mined and added to the overall supply and in the long-term, this makes the coin unstable for long-term investment unlike the deflationary coins such as BTC which has a high demand and a limited supply. However, no one really expected the coin to reach $0.10 and now it is close to reaching $1 in value. Markets can be very unpredictable and one can buy DOGE if they wish but it is always desirable to buy it at lower prices because the markets can be highly volatile.