If Dogecoin (DOGE) Reaches $ 1, Will It Still Be Joke Money?
When Jackson Palmer created Dogecoin and launched the cryptocurrency on December 6, 2013, he certainly did not expect the richest man in the world to talk about it on his social media platform who wanted to create a colony on Mars.
Fast forward to 2021, and Dogecoin suddenly increased more than 800%, fueled chaos, and finally forced popular media outlets to report on the cryptocurrency. This was the story of DOGE, the world’s most popular meme cryptocurrency, this year.
At the time of writing, Dogecoin was ranked 13th with a market capitalization of $ 6.77 billion. It means a lot to be on top of built-in projects like DASH, AAVE and Monero. Still, was it built to last really long or is it heading towards apathy again?
Dogecoin, Elon Musk and the End Concern
Musk has really talked about Dogecoin a lot. In fact, the influence of the Tesla CEO is so great that the cryptocurrency gained momentum in the market when he posted a positive tweet on Twitter to his more than 47 million followers. Recently, however, Musk has been in the news after voicing a serious and legitimate concern about whale congestion .
As will be observed in the latest CoinMetrics report, DOGE is concentrated among several addresses and the top-ranked account currently has 28% of the supply. In fact, the top 100 addresses have 68.1% of the total supply. To give an example to create a more comfortable framework, the top 100 addresses in Bitcoin hold 13.7% of the supply.
Now, the issues with Dogecoin go deeper than just the stacking narrative, and there are many reasons why the cryptocurrency should not be viewed as an important digital asset.
What is the policy?
While initially DOGE’s supply was expected to be 100 billion, it was later updated with unlimited supply. The good side of such a change is that the price remains constant for DOGE, but the downside is that prices remain low. Still, a low-priced currency saw an 800% increase in the charts. This highlights the second concern.
Any cryptocurrency whose price can be changed by tweets or a community (all eyes on the WSB) may not be considered reliable. Such a surge has driven people away from cryptocurrencies before, but Dogecoin gives it a whole new meaning and we see a change attracting hungry individuals who want to take profits.
Safety and Technology
Dogecoin’s code shares many similarities with Bitcoin’s script. DOGE itself is a fork of Luckycoin, which is a fork of Litecoin and is no longer used. In this context, while there isn’t actually a gap, inflationary supply has many factors to take into account. First of all, faster blocks come at the expense of a large number of orphaned blocks that do not contribute to transaction history.
Second, Dogecoin does not have a stable core development team. Most of its developers are core developers largely interested in other projects, and many of them are united only because of the level of activity the cryptocurrency has witnessed recently.
Finally, Dogecoin’s hashrate was roughly 300 terahash at the time of writing. In comparison, Bitcoin was 161 exahash, which was 161,000,000 tera hashes. Ergo, if the network becomes overly valuable (which it won’t) it is possible to say that a 51% attack would be a piece of cake.
Dogecoin Will Survive But As A Joke
Community engagement in the public ledger industry is undeniable, and the recent WallStreetBets event has given all investors a new perspective on beating or emulating the system. While many are currently struggling to get Dogecoin to touch $ 1, this seemingly impossible thing will never be taken seriously.
Even now, the number of people laughing for DOGE’s $ 1 target is quite high. Well let’s say the impossible happened and it reached $ 1. What do you think will happen then?