Dogecoin started in 2013 as a joke, and the spread of memes gave it some popularity. In 2020, tycoon Elon Musk campaigned for it and many people opted to invest some part of their profiles.
Few users but a large amount of money
The currency has improved by over 0.56%. It’s referred to as a ghost coin in town. The number of investors and users on doge is less than expected. People get annoyed with how low its value is growing. However, it’s amazing that its market gets broader each month. In August, its value jumped to over 70%.
The small community is investing a lot. Almost 23000 transactions are taking place daily. financial experts said that it’s not something for long-term investment. But if you opt for small money, it’s advantageous.
Does anybody use doge?
According to statistics, the daily transactions are expected to increase despite few investors. When compared to other popular bitcoin-like ethereum, the doge transaction is behind by over 1.08%.
Other cryptos with small market caps always engage in more transactions. For example, Litecoin gets 0.14% transactions and bitcoin cash gets 0.70% as compared to Dogecoin. In the third quarter, the currency recorded an increase in the number of transactions from 88000 to 133000 within 3 months.
The inequality in ownership is what brings this difference between investors and transactions. The community is very determined about its currency.
Blockchain being controlled by Whales
The wealth gap between investors is too large. Only a single address manages to have 28% of all the coins. Another 11 address has 46% of the coins circulating while the 82 addresses hold above 64% of the total supply of Dogecoins.
The influence of big fish in the game is high. Top investors are controlling the market. In August, $5 billion was transferred from the users to the platform. Ethereum transacted over $8 billion. But when we look at the comparison, Ethereum has 50 times more users than dodge. This means the rate of increase in the value of doge is growing at a higher rate.
The main reason for adopting cryptocurrency was to avoid the limitation of intermediaries in the market. There was a need to get away from strict rules from the government and banks. However, Dogecoin has never obeyed the rule. The small banks created by several people on the platform come up with some rules. The bank has powers that control how investors operate. This has dictated doge prices over time, a report by bloomberg.
Not funny, but still a joke
During the Covid-19 pandemic, Elon Musk became a great supporter of Dogecoin. It gained a positive reputation as people invested some percentage of their profile. A group of investors went on Twitter to start Gamestop.
The crypto society behind Doge said the currency was created as a meme joke and it remains to serve that purpose. The co-founder, Billy Markus, sold away all his shares in the company to invest in Honda Civic. Another co-founder, Jackson Palmer, also flew away from the company.
Their high supply of coins is an indication of the danger zone of the average investor. It’s time to avoid confusing legitimacy and popularity. The price of this cryptocurrency was reduced by 78% in the second quarter, which was the largest fluctuation to ever experienced. Some celebrities who have invested dropped their profiles. Elon Musk also went ahead to warn people against solidifying their investment in single crypto.
Bitpay allows individuals to use some cryptos including Dogecoin without the need to have a debit card. Few wealthy individuals have taken this advantage to control it.
When they decide to sell, the average investor will face many challenges. Thousands of people view Dogecoin as a risky and speculative business, which you cannot invest in long-term rewards.
MORE:
Comment Template