The trends will surely change in 2021 but is dogecoin still a good investment in 2021? Before going into that, you should know what it is.
Cryptocurrency has become a popular investment option for many individuals. It is a virtual currency that uses cryptographic technology to secure your money. There are multiple cryptocurrencies available that can be a reliable source of passive income.
People tend to invest more in virtual currency after bitcoin came in 2009. After bitcoins, crypto coins and altcoins came into existence. Now, there are thousands of cryptocurrencies having unique functions and specifications. Dogecoin is one such example.
What is Dogecoin?
Dogecoin is an altcoin currency that came out in 2013. Its logo is the dog from the famous doge meme. Just like the meme, the programmers launched it as a joke. However, it turned out to be an unexpected success by generating over the US $60 million in the first month.
Retailers accept dogecoins for payments and other transactions. The cryptocurrency became significant in a short period. Today, it has the largest and most active community around the world.
A brief history of Dogecoin
Jackson Palmer introduced the world with Dogecoin in December 2013. The inspiration behind his idea was an internet meme. That is why the logo of the Dogecoin is Doge from that meme. In the beginning, it received a positive response from the audience.
Due to its faster supply and crypt technology, it managed to create the largest community of its own. In its first year, the cryptocurrency captured a market cap of $20 million.
What started its downfall was the departure of Jackson Palmer. He left, stating the reason that the community has become toxic. In the year 2014, its value went down to only $0.0001. It increased to 0.0002 after three years, in 2017.
Price prediction of Dogecoin
The current price of one dogecoin is US$0.003. Dogecoin’s price has been declining for the past few years. The last time it took a hike was in 2018 at a value of US $0.018 with a market cap of over US $2 billion. Still, dogecoin managed to become the 46th biggest cryptocurrency of 2020.
Dogecoin may see a rise in its value in 2021. According to experts, it will go to the US $0.0041, which is a massive jump looking at the past years. If this happens, it will climb up the rank charts and compete with other top cryptocurrencies.
The price rise might also increase its new users and definitely retain the current ones. So if you want to invest in dogecoin, now would be the best time.
Next five years
If all goes well, the price is likely to increase to $0.04. Even $0.05 seems possible if there are no obstacles on the road. With this much hike, dogecoin will be back on top of the charts. The highest expected price for a dogecoin after five years is $0.045.
On the other hand, if nothing goes as planned, it will only reach $0.028. The number of users will drastically decrease in these circumstances. The cryptocurrency might even lose its current position in the worst-case scenario.
Is it worth your money?
Is Dogecoin still a good investment in 2021? The answer is yes. Firstly, it is better to have multiple cryptocurrencies instead of only one. So, dogecoin can become one of your virtual currencies. Secondly, the estimates can turn out to be true and even go above if you are lucky.
Here are other reasons why you should invest in dogecoin:
Dogecoin is faster than any other cryptocurrency. It has a block time of 60 seconds, which significantly less than other altcoins. Even the payments with dogecoin take less time than with bitcoins.
If you want to pay a small amount of money, use these coins for faster payments. It is due to its lower value that makes it easily accessible for smaller transactions.
Dogecoin is inflationary, which means once it reaches the potential value, you will be able to spend it. It is not the case in bitcoins as it is a deflationary currency. You cannot spend bitcoins after mining them out. They are left in the same condition to gradually grow in value.
Use for tipping
You can use dogecoins when you want to tip someone on the internet. Even in gaming, dogecoin can be useful for transactions. That is why people call it the gaming currency or tipping currency.
The community of dogecoin is not only the largest but also a loyal one. It keeps promoting dogecoins in any way possible. They make donations and raise funds whenever necessary. For instance, in 2014, the community raised $50,000 for the Jamaican Bobsled team who could afford to go to the winter Olympics.
The dogecoin community even sponsored NASCAR driver Josh Wise with $58,000. They raised funds amounting to $30,000 for installing a well in the Tana River basin, Kenya. Over 4000 members donated for the same.
In 2013, a hacker stole millions of dogecoins from the users. The loyal members supported the victim by donating enough dogecoins for them.
Where to buy dogecoin?
You can simply buy dogecoins at any exchange that offers cryptocurrency. Also, there are online websites that sell dogecoins. With the dogecoin wallet, you can even store your coins there. If you wish, tip a gamer or someone who accepts the cryptocurrency.
You can also read: How Safe is Coinbase in 2021?
To Sum Up
Investing in cryptocurrency is a great way of earning a few bucks on the side. Dogecoins may have been on the negative side lately but will probably rise again soon. All the predictions point toward an upward trend in the value of dogecoins.
The above reasons are enough to answer the question: is dogecoin still a good investment in 2021? Not only in 2021, but the value of dogecoins will be rising in the upcoming five years as well. So, don’t think much and buy dogecoins. They will turn out profitable for you.