Does Dogecoin (DOGE) Have any Value?
By Market Mad House on ALTCOIN MAGAZINE
I have to confess Dogecoin (DOGE) confuses me. I am confused because Dogecoin was the 25th most popular cryptocurrency on 15 November 2018, yet it had no clear utility.
For example, the Dogecoin website lists no uses for the cryptocurrency or projects with it. Notably, there is no Doge protocol with potential commercial uses, thus they cannot integrate Dogecoin with stablecoins like Bancor (BNT) or Ox (ZRX).
Bancor and Ox are cryptocurrencies associated with potentially useful protocols. The protocols offer capabilities that add value to those cryptocurrencies. For example, the Bancor Protocol facilitates conversions of Ethereum-based tokens.
What Value Does Dogecoin (DOGE) Have?
There is no blockchain platform associated with Dogecoin (DOGE). To explain, they base Ethereum’s value upon its widely used blockchain platform. In addition, they cannot easily convert Dogecoin into ERC20, ERC223, or Ethereum-based crypcurrencies.
Moreover, there are no real-world uses for Dogecoin like there are with Dash (DASH), Ripple (XRP), and the ubiquitous Bitcoin (BTC). In detail, Dash is integrating with brick and mortar merchants; Ripple is being used for remittances, and many websites accept Bitcoin.
Beyond that, there appears to be no team developing a suite of solutions for Dogecoin. To clarify, the utility of coins like Ox, the Raiden Network Token (RNT), NEO (NEO), and QTUM (QTUM) is the other utilities the team behind them is building. Specifically, the NEO team is building a whole new blockchain, Ox is building sidechains, and Raiden is trying to construct a superfast payment system.
Thus, Dogecoin’s only value is as a cryptocurrency. Yet there appears to be no use for Dogecoin except as a secure storage mechanism for money. Even that use is questionable because Bitcoin offers a similar product that can be used for some commercial transactions.
Why DogeCoin (DOGE) is Overvalued
Under these circumstances Mr. Market overvalued Dogecoin (DOGE) with a 2.7¢ Coin Price on 15 November 2018.
Additionally, the $314.079 million DOGE Market Capitalization that CoinMarketCap reported on November 15, 2018, was also unjustified. Thus, I have to wonder how Dogecoin achieved a $21.236 million 24-Hour Market Volume on November 15, 2018.
To make matters worse, Dogecoin seems prone to inflation. I think Dogecoin is inflation prone because there is no limit to the amount of it that can be produced.
Thus, miners will simply make more Dogecoin to cash in whenever prices rise. Obviously, that drives down DOGE’s value and creates inflation. This is why there was a Circulating Supply of 1.17 billion DOGE on 15 November 2018.
Is Dogecoin (DOGE) a speculative bubble?
It appears the only demand for Dogecoin (DOGE) is from speculators who buy it because the price is high.
Therefore, Dogecoin is caught in a speculative bubble. A bubble occurs when speculators drive up the price of an altcoin by buying more and more.
Bubbles are unsustainable because the only thing driving up the price is the speculators. If the speculators stop buying the price collapses and the bubble bursts.
Hence, Dogecoin (DOGE) looks like a classic speculative bubble. For instance, I think the picture of a cute dog on the Dogecoin website drives at least part of its value.
Dogecoin (DOGE) is not nice
In addition, part of Dogecoin’s appeal is that is a “nice cryptocurrency.” That confuses me because I cannot see how a cryptocurrency can be nice.
In addition, I have to wonder what the “mean cryptocurrency” is. Is DASH: the former Darkcoin, the mean cryptocurrency?
I also have to wonder how a questionable asset that is driving a speculative bubble can be nice. In my book, pushing a worthless asset on speculators and investors is not nice.
The appeals to emotion at Dogecoin are apparently a cheap trick to disguise a worthless altcoin. The Dogecoin Foundation is trying to distract and confuse speculators with appeals to emotion.
Why you must Stay Away from Dogecoin (DOGE)
I consider Dogecoin (DOGE) a perfect example of a worthless cryptocurrency. It has no value today, and no potential value from useful technology.
Therefore, Dogecoin is a good teaching tool. Looking at Dogecoin will show you what to avoid in cryptocurrencies.
Hence, all speculators and everybody else must stay far away from Dogecoin (DOGE). This cryptocurrency has no value and it will collapse completely sooner or later.
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The purpose of ALTCOIN MAGAZINE is to educate the world on crypto and to bring it to the hands and the minds of the masses. This article was written and composed by Market Mad House on ALTCOIN MAGAZINE.
