Dogecoin, a Shibu Inu themed meme coin, was created in 2013 in the inspiration of a trending dog theme by two software engineers, Billy Markus and Jackson Palmer. It is one of those cryptocurrencies which is getting a lot of attention lately because of its huge price increase and its uniqueness as a “meme cryptocurrency” with a cult following. Dogecoin has recently turned out to be one of the favorites of tech giants like Elon Musk, social media influencers, and bigwigs across industries.
Today in this article we are going to explore the top 7 reasons to buy dogecoin and answer your question whether- Is it worth buying dogecoin?
Let’s see the top 7 reasons:
Growing market capitalization and value of Dogecoin:
As we write, dogecoin is the seventh-largest cryptocurrency in terms of market capitalization. Its price has gone up since the last three months, with the highest value of $0.722320 on May 8, 2021. While it's currently trading $0.210934, it is definitely a good time to buy the dip.
Unlike Bitcoins, dogecoin has no supply cap. Bitcoins cannot be mined beyond 21 million, out of which over 18 million have already been mined. It is because of this availability of dogecoins that every investor can buy the tokens at an affordable price of 20-30 cents per token. Owing to the scarcity of bitcoins, a single Bitcoin can cost over $30,000. Additionally, the dogecoin mining machines are less expensive than the bitcoin mining machines, allowing an average user to participate in the dogecoin mining network.
Low transaction fee:
To buy dogecoin, you have to pay a fee of less than $1 which is far cheaper than other popular cryptocurrencies. Over the years, the transaction fee for bitcoins has steadily increased. On average, this fee is more than $15 per transaction, and during busy hours it can rise to $60 per transaction.
Secured and free from institutional control:
Dogecoin is far more decentralized. Hackers would need to control 51% of the dogecoin’s network’s hashing power to alter the state of the blockchain.Considering the current Dogecoin hash rate of 203.97 TH/s, this is very unlikely to happen. According to Bloomberg, the top 2% of wealthy bitcoin investors holds more than 95% Bitcoin. On the other hand, Dogecoin is not as concentrated as Bitcoin.
Societal Benefits & increasing goodwill:
Since dogecoin started as a meme, as a project it has always focussed on humanitarian aspects like its creator donating the profits for all sorts of different noble causes around the world. It’s this spirit of goodwill that continually makes this coin a popular project. Dogecoin has managed to unite people all over the world in common pursuits of money, laughter, and connectedness.
Environment friendly transactions:
Dogecoin uses scrypt technology which uses much less electrical energy (even less than 1% of Bitcoin’s energy per transaction) than Bitcoin’s SHA-256 mining algorithm. Less electricity requirement means less coal is required to be burnt and hence dogecoin poses a lesser environmental risk. With the growing environmental concerns and the fast adoption of carbon neutrality policies by governments across the world, dogecoin has a huge prospect of becoming the currency of the Earth.
A 2019 Coinshares research shows that China controls 65% of Bitcoin mining power due to its availability of cheap hardware and cheap electricity. But recently, the Chinese Government has banned bitcoin mining due to its huge electricity consumption.
Growing recognition of Dogecoin:
Though dogecoin started as a joke, now it is a world-recognized project. Its strong GitHub presence indicates the growing interest in the software development community about this cryptocurrency, which shows that it is an active project and developers are trying to improve the algorithms.
Moreover, the coin has strong media support and goodwill. Dogecoin was recently endorsed by the CEO of Tesla Motors, Elon Musk who tweeted,” Dogecoin is people’s crypto”. He changed the original title of the 1926 painting "Dog Barking At The Moon" to "Doge barking at the moon", referring to the cryptocurrency Dogecoin. This was enough to take the value of Dogecoin to an all-time high. Other celebrities such as Snoop Dogg, Gene Simmons, and Kevin Jonas have also endorsed Dogecoin.
Dogecoin’s network has increased, and now, more vendors than ever are accepting this cryptocurrency. For instance, Dallas Mavericks owner Mark Cuban announced that his NBA franchise would accept dogecoin as payment for tickets and merchandise.
Dogecoin is one of the most well-known cryptocurrencies out in the market and while its value is down by a lot, it has the potential to become something big in the future. But before you invest, you should know that all crypto assets come with huge volatilities. Therefore it's important to understand that there are chances that your investment turns red and hence before you invest, it's important to do your research and make sure it's the best option for you