Dogecoin is one of the most interesting cryptocurrencies to watch because of its meteoric rise. From making fun of a Shiba Inu dog speaking in broken English, Dogecoin is one of the most talked-about coins in the crypto market. According to Zane Styel, a crypto student at Columbus Ohio, a person that bought $100 worth of dogecoin 5 years ago would be worth over $230,000 today. So this begs the question, will Dogecoin reach the $1,000 mark?
The question about the future of Dogecoin has been discussed at length since Elon Musk’s tweets from December 2020. Could this meme coin go over the $1000 mark? Let’s look at some arguments experts have come up with about the topic.
Why Dogecoin May Reach $1000
Dogecoins infrastructure uses crypto’s most useful principles such as proof-of-work formula and complete network decentralization. It uses Litecoin’s ecosystem, its parent blockchain. Despite its low market price, dogecoin’s market cap value is over $69 billion. This puts Dogecoin in 4th place; after BTC, ETH, and Binance coin (BNB). Some reasons why DOGE would be attractive to investors that could see a bullish trend include:
Reasons Why Dogecoin Would Attract More Investors
- While other cryptocurrencies have caps on how many of their coins can be in circulation, DOGE’s creators decided that it should be infinite. This means that its market price would be steady and not suffer from inflation due to demand.
- Compared to other coins, it has very affordable transaction fees. For example, while DOGE’s fee goes no higher than $0.01, Bitcoin can be around $10 for a transaction. Low transaction costs attract small investors who are the majority.
- Because of the discount offered on the block mining rate, DOGE’s dealing process speeds are very high. This means that you can mine more DOGE compared to coins with slower dealing process speeds.
- There are many real-life applications for Dogecoin. This means that the ecosystem attracts a lot of developers who can come up with interesting projects that can benefit people.
- With some governments still unsure of how to regulate or deal with the topic of cryptos, they have restrictions on certain coins. However, in most countries, dogecoin’s operations are still acceptable and legal. If governments don’t hinder its usage, then its potential is unlimited.
- Miners don’t have to spend a lot of cash mining for DOGE. They use deep mining which does away with costly instrumentation or complicated victimization.
All these reasons make DOGE an attractive coin to invest in. While the $1000 mark might be ambitious, there is no reason why DOGE shouldn’t go to the moon in the future. The argument is for when and not if.
Argument That It Won’t
Financial analysts argue that for dogecoin to ever hit the $1000 mark, its market value would need to be $130 trillion. The current amount of money in circulation in the world right now is $80 trillion. That would mean that DOGE would be worth more than the money in existence currently. That would never happen.
They however predict that an achievable goal for the altcoin would be $10 by 2025.