Dogecoin is one of the most popular cryptocurrencies right now. At the time of writing this article, the meme coin has already surpassed many giant crypto coins to become one of the top 5 coins, by market cap. At the time of writing this article, Dogecoin has already had multiple rallies just in the past month. At the of writing this article, the price of Dogecoin has reached $0.65 an all-time high record. Doge is so dominant in the market right now, that other coins are losing market share to Doge. Is Dogecoin a good investment in 2021? Read on to find out.
How Does Dogecoin Work?
Dogecoin is a popular cryptocurrency that was formed in 2013 as a joke. Doge was built to a friendly introduction to the concept of cryptocurrency for the general public and people who had never heard of cryptocurrencies before. From the start, Doge had many advantages going for it. Doge was well known because of its meme status. Doge was made from a fork of the Bitcoin blockchain. People trusted Doge since it was started as a joke and not as a ‘get rich quick’ scheme, like many other coins. Additionally, Doge had a low entry cost, as a couple of years Doge barely cost a few pennies. However, as the popularity of Doge grew, so did the demand.
Dogecoin is now the fourth-largest cryptocurrency
— UberFacts (@UberFacts) May 4, 2021
Slowly over the last couple of years, Doge consolidated its position and settled at a price of $0.05. However, in April, the Dogecoin Price shot up many times, to reach an all-time high of $0.65. Even in the crypto industry, this means significant gains and profit margins. As the hype behind this meme coin rises with enormous momentum, more and more people are looking to buy Dogecoin. At this point, people are wondering will Dogecoin reach $1? At this point, it seems highly likely.
Is Dogecoin a Good Investment?
Before investing in Doge, people should understand that Doge is an inflationary coin, meaning it has an endless supply that keeps growing more and more rapidly as time goes. Every year, more than 4 Billion Dogecoin are mined and added to the overall supply. In the long term, this makes Doge unstable for long term investment, unlike deflationary coins like Bitcoin, which has a high demand and a limited supply.
However, nobody really expected Doge to even reach $0.10 and now it’s close to reaching a $1 in value. Crypto markets can be very unpredictable. One can buy Doge if you like but it would be advisable to wait till the prices drop a little. However, this is not financial advice, and people should do their own research before getting into the crypto, as the crypto markets can be highly volatile.