Dogecoin (DOGE) was one of the earliest “meme tokens,” Its creators, Billy Markus and Jackson Palmer, launched it as a joke in 2013. It has since witnessed a massive increase as many investors buy Dogecoin. Dogecoin has thrived due to two factors.
To begin with, it was early in the game. Back then, investors had fewer options, so merely being a part of the crypto community had a larger feeling of purpose. Dogecoin’s reputation as a joke enticed fans to buy Dogecoin for reasons other than financial gain.
There are numerous reasons why you should buy Dogecoin at this time. Many people believe they need to be a sophisticated investor with a lot of money, but it’s quite simple, even for beginners, with a little common sense and research.
With Dogecoin’s price surge last May, it’s understandable to wonder if it’s still a viable investment. Dogecoin has risen by a massive margin year-to-date and is currently on the verge of breaching the $11 billion market cap. This makes anyone’s rationale frightened of an impending correction.
What Are The Key Reasons For Investors To Buy Dogecoin?
During the GameStop short-term squeeze in 2021, a group of social media-fueled Robinhood investors brought down Melvin Capital and decentralized cryptocurrencies, resulting in panic among central banks worldwide. Power appears to be flowing from the top, with fiber optic cables and WiFi routers carrying it down the staircase.
For every zoomer or millennial who has a Robinhood account, chances are you already possess more DOGE than any financial expert on the planet would advise. You’ve made a better profit on it than those financial advisors would ever make on their stock portfolios over the next decade. You’ve earned it—Pat yourself on the back.
Investors who buy Dogecoin are about being privy to a bigger project than just generating money (though that may happen by accident).
A retail investor is not regarded as a single person. They’re a group, and Doge is their mascot, whether you’re betting $0.01 or $1.
DOGE is a good fit for new crypto investors
If you are new to cryptocurrencies, it is advisable to buy Dogecoin. Volatility and benefits are inevitable, but investors must be ready to weather the storms. Although Dogecoin’s extreme volatility recorded over the last year may have scared away some investors, investing in a coin that can surge or crash in a matter of minutes requires a great level of risk tolerance. However, DOGE is a great investment for novices since it allows them to understand what crypto investing is all about by holding it for a long time.
DOGE transactions are faster
Dogecoin has a great feature known as the Scrypt algorithm. This is different from Bitcoin’s SHA256 algorithm and allows for far faster block production, making Doge transactions significantly faster than BTC.
Dogecoin is a trustworthy store of value
Dogecoin was created in 2017 as a meme version of Litecoin, which is a fork of Bitcoin. The mechanism behind Dogecoin is built on its planned use as a highly accessible P2P mode of a cryptocurrency exchange to prevent long-term holding from depleting circulation and lowering transaction fees.
DOGE has a distinct market stance due to its mining model, inflationary status, and links to Litecoin
Due to concerns about the environmental impact of cryptocurrency mining, experts believe Dogecoin will swap to a proof-of-stake validation methodology, in which coin holders validate transactions.
DOGE is becoming more mainstream
The value of Dogecoin is derived from its widespread acceptance as a medium of exchange. Just like the value of any other currency. While several small businesses are now accepting Dogecoin as a means of payment, the impact on the economy remains negligible.
The popularity of Dogecoin
Because cryptocurrency is so speculative, its popularity is crucial. In terms of value, Dogecoin is worth it because others believe it will rise in value. Those who invest in DOGE are likewise betting on more celebrity-driven headlines.
Of course, the fact that Dogecoin is currently so popular is fantastic. DOGE has delivered investors a stunning 9,000 percent return in the last year alone.
On the other hand, investors risk purchasing a token that has soared in popularity so quickly. Dogecoin may be thrown away if another cryptocurrency captures most investors’ interest.
Featured Image by Kevin_Y from Pixabay
