The Rise & Eventual Fall Of Doge

almost 3 years ago

Hey Jesspeculators

Dogecoin has been the darling of this bull run with a 427.4% lift in the last month and a 12900.9% increase in the last year. Anyone holding any substantial amount of this coin could be a millionaire by now; in fact, there are dogecoin millionaires coming out in the papers recently.

Now I wouldn't; be that brazen to the public know I made millions on dogecoin, especially when governments are looking for money, but to each their own.

So with so many getting suckered into dogecoin because of the price action, I thought I'd take a look at the coin and give my take on possible sane outcomes.

Dogecoin was always a joke

Dogecoin emerged in 2013 as a joke. It was created by Jackson Palmer and Billy Markus to satirize the growth of altcoins by making the doge internet meme into a cryptocurrency.

While it was birthed as a joke, its speed and affordability have made it a popular tipping coin.

A review of doge's potential price action

If we look at data from @coingecko on doge, we can see that the coin has a current all-time high is $0.418888, with it currently trading at $0.271421.

At this price, the market cap sits around $34,828,871,326, which is massive for a cryptocurrency; it's already at 7 in the all-time high market caps, meaning it's already quite overvalued and will take a large amount of capital to keep it moving up.

If we look at its current supply, there are already 129,334,992,637 tokens in circulation, and the cap is infinite ∞ , which was changed from 100 billion to infinite in 2014.

While the issuance rate remains the same for the coin until the doubling, it does mean that as the project continues, it will constantly devalue over time.

Dogecoin supply

Originally, Dogecoin had a hard limit of 100 billion tokens, similar to Bitcoin's cap of 21 million tokens. However, the developers changed their plans in 2014, eliminating the supply constraints. In other words, as long as miners continue to build the blockchain, more Dogecoin will continue to wink into existence.

I think the coming together of stimulus cheques, financial speculation, the access to dogecoin, the price bias as i's as mall unit price and cheap to use make it attractive in the short term. I think there are several waves that doge coin rides now from macro to its current state of issuance, but the wind will come out of its sails sooner or later.

I see this as total gambling and financial meme'ing, and while you can make money from it, I do think this is peak dogecoin, and after 2022 it will remain in steady decline. This might not reflect in the dollar value, but it will surely show up when compared to Sats.

My dogecoin stake

I picked up dogecoin years ago when it was well under a cent. I purchased it because it was an as stupid cheap way of messing around with crypto since the mining fees was next to nothing, and then my mum had bought some by accident, thinking it's Bitcoin. Instead of selling, I told her to send it to me, and I'd send her the same amount in BTC.

I left that stake for years not caring about it, but now that the price has rallied the way it has, I do think Doge could top out at around the $0.60 - $1 range in this bull run.

I'll definitely be getting rid of my stake, and I doubt I'd ever get back into this coin. I think this will be the defining run for doge, and it will never reach the same heights again.

As the chain continues to create new coins at an increased rate, it will take more and more capital to move the price, and as their doubling rate continues, it will become near impossible to see these prices.

To those invested in dogecoin, I say have fun gambling but do your research before trying to chase this runaway train.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, "I am a Jessie."

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