Why Dogecoin Not Going Up?

Dogecoin is inflationary, the worst crypto as a store of value, with no institutional support for investment, no auction rewards, with limited functionality and no better than the US dollar. As a result, investors are actively avoiding this cryptocurrency. This is the reason why the price of Dogecoin is not rising.

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Each of the points discussed below are reasons why investors avoid Dogecoin. Without enough money flowing into this cryptocurrency, the price will not be able to rise.

Inflationary, but without stability premium:

A cryptocurrency that has no supply limit doesn’t mean it’s bad. Ethereum, Polkadot (DOT) are also inflation coins. However, the main difference is that Polkadot and Ethereum provide evidence of a star chain, while Dogecoin provides evidence of a functional chain. You can invest your cryptos in Blockchain and earn 3% to 13% as a betting premium. Dogecoin, on the other hand, has no such mechanism.

The main objective of an investor is profit maximization. If I have money and I have the options Dogecoin, Bitcoin, Ethereum, I will choose Bitcoin, Ethereum and Polkadot over Dogecoin. Bitcoin is now considered digital gold, and Ethereum has a universal use case and is the second most popular crypto currency. Moreover, with Polkadot and Ethereum, it will be possible to win rewards in the form of bets.

No flare of the part:

Bitcoin is deflationary. Although Ethereum and Polkadot are inflationary, these networks burn coins on various occasions, reducing the number of crypto elements on the blockchain.

In addition, miners (validators on Polkadot) use millions of crypto tokens as collateral to become active on these networks, which reduces the number of tokens in circulation. So high demand and low supply drive the price up.

On the contrary: Dogecoin does not burn coins.

Bitcoin miners cannot mine Ethereum with the same equipment, and vice versa. But Doj has partnered with Litecoin. It’s mainly to encourage Litecoin miners to support the Doge blockchain.

To save these miners, the Doge rewards 10,000 coins per minute. At this rate, 14.4 million doshas are added to the blockchain every day. We discovered that most miners do not have this cryptogram. They convert newly minted coins into Bitcoin, Ethereum or other crypto currencies.

To keep the price of Dogecoin stable, 14.4 million x (the current price of Dogecoin) US dollars must flow into this blockchain; or more money, otherwise the price would never rise. For this reason many investors avoid this currency.

Limited functionality:

Bitcoin is deflationary and is considered digital gold. Ethereum has smart contracts and various other applications. Bitcoin and Ethereum are the most widely used crypto-currencies in the industry. Polkadot allows different devices to communicate with each other.

On the other hand, Dogecoin has no smart contract, is inflationary and is only accepted by a handful of companies.

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We have two choices:

  1. Buy bitcoins, ethereums and watch our investment grow, or
  2. Buy Dogecoin and hold on to it, hoping the price will rise as more companies start accepting the currency.

For an investor, choice 1 is much safer than choice 2.

We’re not Elon Musk. Elon Musk can buy millions of precursors and hold them for 10-15 years. He’s the richest man in the world and we’re not.

Limited call options:

Every cryptocurrency exchange in the world supports trading Bitcoin and Ethereum. You can even buy them through paypal.

However, there are minimal opportunities to buy Dogecoin, especially in the United States. Except for a few, most exchanges do not offer this coin. Coinbase, for example, does not support Doge. So while many people want to invest in Dogecoin, they can’t.

No institutional support

The price of Dogecoin will never rise unless institutional money comes in. Most large banks, hedge funds and corporations only buy bitcoin. Tesla bought bitcoin, even though Elon Musk is the biggest supporter of dogecoin.

According to the Federal Reserve, the richest 10% in this country control 70% of the wealth. In contrast, the poorest 50 percent of the population owns only 2 percent of the wealth of the United States. Without the top 10%, the price of Dogecoin would not have moved.

Negative stigma:

Everyone knows that Billy Marcus and Jackson Palmer started Dogecoin as a joke. They created this piece to ridicule bitcoin, litecoin and other crypto currencies. They thought cryptocurrencies were nonsense and that no one should take them seriously. Billy Marcus and Jackson Palmer created Dogecoin to make fun of crypto currencies.

As a result, the core of the crypto community has always disliked and shunned Dogecoin. It is said that Dogecoin was created as a joke and should be treated as such. This mindset may change in the future, but until then, no one will take Doj seriously.

Save no fee

We have forex and stocks. Forex is ideal for scalping, while stocks are best for the long term.

Those looking to invest in cryptocurrencies prefer bitcoin because it is a store of value. While Dogecoin is the worst crypto as a store of value.

Emotional investment decisions always lead to pain. So we have found that pragmatic investors avoid Doge but buy Ethereum or Bitcoin.

USD Better than the dog

The only use for Dogecoins is that we can buy something with them. However, this crypto currency does not give us any advantage over the US dollar. Here is a chart comparing the US dollar to Dogecoin.

USD Coal piece
They all accept US dollars A handful of salesmen take the money
The payment process takes less than a second The payment process takes 1 minute
Now it has a lower inflation rate Now it has a higher inflation rate
Interbank transfer, interbank ACH free of charge A reasonable fee will be charged for each transfer
The fraudulent transfer is reversible, traceable and punishable. Fraudulent Dogecoin transfers due to hacking cannot be reversed or traced. He’s lost forever.
It is easy to understand Technologically too complicated for most people
1 USD = 1 USD Kogecoin is pegged to the US dollar. If you sell Dogecoin for a profit, you will have to pay income tax.

Dogecoin is not a solution to anything. It is not profitable against the US dollar. So why would people replace the US dollar with Dogecoin? The kogekoin is a currency, but in no way better than the US dollar.

Conclusion:

In short, other than being a cryptocurrency, Dogecoin has no use. Investors are therefore avoiding it and that is why the price is not rising.

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