Today I read an interesting article where the doge coin creator calls crypto a scam. I have to say that it is an interesting article because it has lots of facts in it. He mentions that cryptocurrency was primarily created for the following three things such as tax avoidance, diminished regulatory oversight, and artificially enforced scarcity. There were also many other points specified in this context.
I personally see Dogecoin as just a coin with a dog on it. Other than that I don't know what real-world problems this coin is solving or compared to so many coins out there, whether it is really worth investing so much on this coin. I understand that not all the coins are solving real-world problems but still, we shouldn't be purchasing a coin just because it is a cryptocurrency right?
I think most of the trading that is currently happening on this coin is because this coin has a few advantages in terms of transaction fees. People have created lots of FOMO on this coin and that's what pumped the price to almost 60 cents in the past bull run. Even now the price of the coin is pretty strong and there are still people getting their hands on Dogecoin.
Should you invest in Dogecoin?
When we have so many coins out there to invest, people have this feeling that they shouldn't miss investing in Doge. I guess that's quite common. One of my friends from the fiat world recently asked me if it is good to invest in Dogecoin and he also asked me how he can invest.
Surprisingly he didn't ask me about Bitcoin or any other cryptocurrency but Dogecoin. I guess it is all because of the FOMO created in social media where Elon Musk talks about Bitcoin. I would personally ask him to give me 10 strong reasons why we should be purchasing Doge. I don't know if they will even have 5 strong points to share.
But yeah in my opinion I would say that there is no harm in having a few Doge in our collection from a trader or investor perspective. Even though the coin has no big use case compared to other better coins, it is quite popular because of the FOMO. At least for that reason, we have to keep it in the portfolio because anything can happen in the future. For no reason, Doge can pump to even 5$ who knows.
Sometimes I use Doge to transfer funds from one exchange wallet to another as the transaction cost is cheaper. But recently after Doge had a nice pump, there are also cheaper coins out there if we want to move funds from one exchange to another. I would personally say that it is a high risk if we are planning to do investment on Doge because the fundamental use case for the coin is very limited.
Most of the coins in the world are backed by just two factors. Either the use case or utility of the coin or how popular the coin can get. Marketing plays a vital role in this. If you would like to launch a coin and make it as popular as Dogecoin, find someone like Elon Musk to talk about it. Even if your coin has no utility but just a coin with a sheep on it, it will become popular.
So, for me, I think Dogecoin is nothing but just a coin with a dog on it.
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