Many think Dogecoin will be the next big investment after Bitcoin and Ethereum. And they think that because Elon Musk invested in it. But I think Dogecoin doesn’t have that potential. Why? Let’s look at the factors that make Dogecoin a bad investment. We all know that Dogecoin is a well-known cryptocurrency, and many influential investors have invested in Dogecoin.
Downside of Unlimited Supply
But I think it’s a wasted investment. This is because you have an unlimited supply of coins. It doesn’t matter how much you want. You can mine as much Dogecoin as you want. This will inflate Dogecoin. At the same time, Dogecoin is becoming a low-demand asset due to its unlimited supply, and since the demand remains constant and the supply will skyrocket, the price of Dogecoin will decrease day by day. Crypto will perform better depending on the technology used and technology updates.
Technology Stagnation Dilemma
It used the same technology used to create Bitcoin and Ethereum. But here’s the catch, which is Bitcoin and Ethereum are constantly updating their system and technology. On the other hand, Dogecoin has never been updated since 2015. So, the technology has remained the same as in 2015. So, how will Dogecoin do better in the future if its technology hasn’t been updated for that long, and how will it cope with other cryptos?
Dilemma of Dogecoin
Dogecoin holdings, then the developers have no choice but to abandon them again. We all know that Dogecoin and other litecoins were created for jokes and memes. These are created for people to have fun and jokes about bitcoins. But they’ve been fine ever since. However, Dogecoin has been on the market for a long time, and yet the kit has not grown as much as Ethereum and Bitcoin or even Cardano. On the other hand, since it was created for funds, people will not take it seriously and invest in it, and that will not be good as no investment means no added value.
Navigating Volatility
Also, it hasn’t caught the attention of investors that Bitcoin and Ethereum do. However, people believe in Bitcoin and Ethereum, and that is why they invest their money in them. But they are not so confident in Dogecoins. We all know that cryptocurrencies are extremely volatile. But Dogecoin is more volatile than other cryptocurrencies. This is because Dogecoin has an unlimited supply of coins, and people can mine as many as they want.