WHAT IS DOGECOIN?
Do you know what a meme is? It’s a bit like the internet’s sense of humor. And the Doge Meme is one of his jokes. Indeed, in the beginning, Dogecoin was a parody cryptocurrency. We see it by the design of the little Doge on the motto; By combining humor with trading and functional tokens.
Since 2013, Dogecoin has come to revolutionize the world of bitcoin which was reserved for the privileged and the elite. The creators who designed it aimed to trivialize cryptocurrency, and they achieved it because after its realization, the Dogecoin became a legend in the stock exchange community.
The token has, in fact, more than 100 billion units around the world, something that has lowered the credibility of bitcoin, which has only 21 million tokens. The advantage with Dogecoin is that it is accessible and that it works like all other cryptocurrencies, it can be mined and bought from all exchanges.
WHAT THE ELON MUSK SNL APPEARANCE MEANS TO DOGECOIN
Dogecoin has plunged 28% after Tesla founder and CEO Elon Musk called it a “trick” on the popular American comedy show Saturday Night Live.
Earlier, the head of Tesla on Twitter called for caution to invest in cryptocurrencies, while he said that this is a “promising asset.”
At the beginning of the show, Musk also invited his mother, May Musk, to the stage. The woman asked her son what gift she would receive from him on Mother’s Day. “I just hope it’s not Dogecoin,” she joked, to which she received the answer “It is she”.
In one of the statements, Elon Musk explained to the host of Saturday Night Live what the essence of the Dogecoin cryptocurrency is. He noted that the coin was created as a joke based on the meme, but has now “taken on quite real dimensions.” “This is the future of currencies, an irrepressible financial instrument that will take over the world,” Musk said.
When the anchors asked what Dogecoin was, Musk said it was simply “a cryptocurrency that can be exchanged for regular money.” “Oh, is this a wiring?” – asked one of the presenters. “Yes, this is a wiring,” Musk agreed and laughed.
Dogecoin, which had previously reacted favorably to Musk’s tweet mentions, plummeted after that. Before the show, Dogecoin was quoted on the Binance crypto exchange at $ 0.65, after the show, quotes fell 28% to $0.47 per coin.
THE FUTURE OF DOGECOIN
Dogecoin is a cryptocurrency that has a surprising habit. Truth be told, it is so astonishing that analysts and experts find it difficult to follow. Indeed, any forecast on the Dogecoin can be made cadique by one of the violent movements of which it has the secret.
Virtually all Dogecoin 2022 expert forecasts have been exceeded, as DOGE has gained over 2000% in the first 3 months of the year. Anything is possible with Dogecoin, and this is also what makes it an interesting cryptocurrency, although its future in 2022 is highly uncertain.
In the longer term, over a horizon of 5 to 10 years, many experts believe that Dogecoin can reach a value of $1 per token, which would increase its value tenfold compared to current prices. However, over such a long time horizon, and for a market as young as cryptocurrencies, forecasts are undoubtedly very unreliable.
FACTORS THAT WILL INFLUENCE THE FUTURE OF DOGECOIN
There are a few particularly important factors to consider when trying to determine the future of Dogecoin. Here are the most crucial factors:
Dogecoin Supply And Demand: the law of supply and demand governs the price of almost everything, including financial assets, and cryptocurrencies, including Dogecoin, are no exception. Concretely, all other things being equal, an increase in demand, that is to say, a greater number of buyers of Dogecoin, will drive up the price. Conversely, a drop in demand will cause the price to drop.
Thus, the price of Dogecoin is supposed to be the price at which there are as many buyers as there are sellers. If the number of buyers decreases, the price adjusts downward. If the number of sellers decreases, the price adjusts upward.
Finally, regarding the supply, it should be noted that, unlike Bitcoin, the amount of Dogecoin is virtually infinite. The Dogecoin code indeed provides for the possibility of creating unlimited new tokens. Thus, if the number of tokens in circulation increases, the price should fall, if the demand does not follow.
CryptoCurrency Rules And Regulations: due to the rapid rise in popularity of Bitcoin, Dogecoin, and other cryptocurrencies, regulators are debating how to define these digital assets:
- The Securities and Exchange Commission (SEC) classifies cryptocurrencies as securities
- The United States Commodity Futures Trading Commission (CFTC) classifies Bitcoin as a commodity.
If the rules become too strict or repressive, the value of the cryptocurrency will drop. On the other hand, if they are favorable to the cryptocurrency industry, they can catalyze rapid growth. As cryptocurrencies like Dogecoin are decentralized, meaning that they are not tied to a particular central government, regulations can have a direct effect on the price since they concern investors.
The Power of Media and the Future of Dogecoin: several reports have shown that the media has the greatest effect on the price of cryptocurrencies in general, and Dogecoin as well, even excluding Elon Musk’s Twitter account. The general public is gaining a better understanding of cryptocurrencies through increased media attention. This can attract new users to cryptocurrencies. When a cryptocurrency investor discovers new knowledge in the media, he will immediately tell his friends, who will do the same.
Word will spread like wildfire thanks to the power of social media, and the price of Dogecoin like other digital currencies will take a hit. Positive media coverage of Dogecoin or cryptocurrencies, in general, will usually cause prices to rise, while negative coverage will have the opposite result.
Mining And Dogecoin: a technical reason that could guarantee a solid Dogecoin future concerns the specificities of mining this cryptocurrency, which attract many miners to this cryptocurrency.
Indeed, many Scrypt miners still prefer Dogecoin (DOGE) to Scrypt’s other PoW cryptocurrencies. Indeed, the hash rate of Dogecoin (DOGE) is around 150 TH/s. That’s just below the Litecoin (LTC) hash rate of 170 TH/s. Probably, because Dogecoin (DOGE) can be merged with Litecoin (LTC). This means that miners can mine both cryptocurrencies simultaneously using the same job.
Virtually everyone who mines Litecoin (LTC) chooses to mine Dogecoin (DOGE) as well, as Dogecoin Merger Mining (DOGE) increases profits. This guarantees optimal and fast functioning of the Dogecoin network, a sine qua non for the popularity of all cryptocurrencies.
The future of Dogecoin could therefore reveal both positive and negative surprises. It is therefore an investment to be considered risky. But the riskier an investment, the greater the profit potential, this is one of the basic rules of trading. So, this does not mean to run away from Dogecoin, but simply to approach it with caution.
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