What do you think of the Future of DogeCoin ?

Updated on November 21, 2018 in DOGECOIN
0 on November 21, 2018

Dogecoin started in 2013 as a joke coin which has gained popularity as a tipping coin. With 100billion coins already mined ang 5 something billion coins added to its circulatiin every year. The fact that it has so many supplies makes it less valuable which means the price wouldn’t increase. True, we always go back to the law of supply and demand taught by us in economics class. It all boils down to that, really. As you can see if the supply is high, the value may go down or may become stagnant. If doge wants a future, it must limit the supply of its coins. That’s the best future this coin could ever have.

At this moment there are 152,523,368,323 coins, which are many, and very cheap, this is because the basic unit is very low. This is very practical because it is not necessary to use confusing fractions or a smaller unit as does bitcoin with Satoshi. This is an advantage for the purpose of micropayments and tips. Currently, tips are usually 10, 50, 200 dogecoins. It is a very manageable amount. In the future, if dogecoin increases in value, tips will be 1, 5, or 20. Hey, this is very appreciated as a tip by the new users.

But as I say, it is only a unit of measurement, and the basic units must be small, such as the meter, the gram, or the byte. And in the same way that when the quantities exceed the thousands or millions, the kilo or mega is used. In dogecoin, we use the kidology or the megadoge.

To equate to bitcoin, we must use the megadoge, which is currently worth $9000. It is curious that if we make the comparison find that there are almost 20 million BTC in circulation, but only 112,000 MÐ. This means that in the future it may be more difficult to have 1MD than 1฿. Even with an annual infinite supply of 5% in the next thousand years, there will not be more Megadoges than bitcoins.

But also, if we look at the current supply, we see that this year and the next will continue to provide millions of bitcoins, compared to just 5000 MÐ. It is true that when bitcoin finishes its mining, dogecoin will continue to supply those 5000MÐ, but it will no longer be 5%. Within 10 years it will be 3%, and within 30 years only 2%. And during this century it will continue its reduction to 1%. And at that time the total supply will not be even 1 million MÐ.

I hope I have clarified a bit what inflation and the high supply of currency mean in practice. There are people who say that it is better, others that it is worse. The worst is how it is seen in this speculative world, but I think that in the end, it is better.

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