Cryptocurrencies quickly spread throughout the world. One of the popular coins that almost everyone has heard about in 2021 is Dogecoin. It is a cryptocurrency meme that has grown into a real payment system.
This article will discuss this project in more detail; we will try to find out its strengths and weaknesses and analyze the DOGE rate as well as try to suppose what waits for it in the near future.
What is Dogecoin?
Dogecoin is a decentralized peer-to-peer digital currency built on Blockchain technology. All transaction information is stored in blocks. These blocks are generated and processed by computers of remote users — miners. Dogecoin is based on the Litecoin blockchain.
US programmer Billy Markus together with Adobe engineer Jackson Palmer created the coin initially. The main goal was to create a digital currency that would be available to a large audience. Initially, the block reward was set randomly. But, in March 2014, it changed, and the reward started to be fixed.
If we compare this project with Litecoin, the first thing that catches your eye is the number of coins issued. At the time of this writing, DOGE has an issue of over 129 billion, and it will increase by 5 billion coins annually, whereas Litecoin’s supply is around 66 thousand.
Where is DOGE used?
This coin’s application scope is slightly narrower than that of significant currencies such as BTC, ETH, etc. To a greater extent, DOGE is used to collect funds for charity. It is pretty convenient since you don’t need to carry out international transfers, for which banks, as a rule, charge fairly large fees.
This cryptocurrency is a rather liquid asset, so you can use it as you like.
How to exchange DOGE?
Another important question that worries DOGE owners is how to convert a coin to fiat or another cryptocurrency. This coin is very popular among users, and one can easily exchange DOGE without any problems. There are several options for performing the swapping. The most common ones are online exchanges and direct transactions with private persons.
Regarding online exchanges, it is considered to be the most straightforward and convenient option for performing an exchange. Moreover, it is suitable for both buying and selling tokens. At the moment, the coin trades on almost all well-known spot cryptocurrency exchanges. The daily trade turnover exceeds $4 billion.
The easiest and most convenient way to convert cryptocurrencies is the Godex.io decentralized platform. Here you can exchange any coins in just a couple of clicks. Even if you did not swap coins before, you will find this service user-friendly and straightforward.
If you want to know the rate for 1 DOGE to BTC, you can use the Godex calculator. This tool is located right on the main page of the service. After you enter the required amount of DOGE coins, the algorithm will calculate the exact amount of BTC you will receive. Moreover, you can count on the best rate on the market.
Besides, Godex offers you fixed rates. You will know the exact number (up to a satoshi) of coins that will arrive in your wallet at the beginning of the transaction.
Strange to say, Dogecoin is one of the most stable cryptocurrencies. For a very long time, the volatility of this coin was minimal. Although, we can note a smooth, gradual rise, albeit insignificant. For making a forecast for the future, it is essential to understand why the Dogecoin rate is growing:
- Coin availability – absolutely everyone can buy a coin due to its low cost. This accessibility attracts the general public. And it is essential to understand that the more people buy Dogecoin, the higher the rate grows.
- Capitalization – there was a jump in capitalization growth at the beginning of 2021. Tweets from the famous businessman Elon Musk caused it. In 9 days, the DOGE rate increased by more than 1000%, and then it dropped twice from the new peak in a couple of days.
Considering all of the above, it appears that interest in DOGE does not fade away; thus, the crypto asset remains relevant and afloat. Given such rosy prospects and constant curiosity, why doesn’t the coin’s exchange rate grow faster?
Everything is straightforward; one of the factors affecting the value of the coin is the limited emission. That is, when the maximum number of coins is known in advance, the value increases with each mined coin. Dogecoin has no limited emission; therefore, no matter how many coins have already been issued to the network, the rate remains the same and depends on other factors.
Also, don’t forget that DOGE is just a joke project that does not bring any technological benefit. Many experts advise against betting on this coin. It does not mean that the coin rate will not rise; still, its long-term prospects seem rather vague.