Dogecoin is a currency, bitcoin is a commodity. Totally new in the cryptocurrency holder of bitcoins,litecoins and dogecoins, I couldn’t resist not to write about this topic. They say the person who jumps first in the dance floor will win the crowd and that’s the case for bitcoin. When it appeared it was an innovation, making instant transactions online with a new payment method, no hidden fees( sorry Paypal) that was super cool and still is. The limited supply with the high demand for it, means only one thing, price is going up. But bitcoin is extremely volatile taking in consideration the ridiculous rumours that is banned from China it dropped from $588 to $463( by the time of this article). They say is easy to rise up and easy to fall down and it might be argued that is the case for bitcoin. Bitcoin and litecoin have limited supply, 21 million and 84 million coins respectively and that’s why cannot be considered as currency but a commodity. A currency in order to be considered as a currency needs to have an infinite supply and that is not the case for these two coins. On the other hand dogecoin with a price value of $ 0.001 per coin with no limit in supply can be considered the next big thing in cryptocurrency. When bitcoin was created it had as a goal to make transactions on the internet easier and cheaper, now with a price of $501, I don’t see why ordinary people will use it for their transactions when they have dogecoin which is extremely cheap. It should be noted that dogecoin has a strong community, is more friendly and catchy to the ordinary people than the other coins and in my opinion is not going to be as volatile as bitcoin and litecoin. So it could be argued that dogecoin brings something new in the market of cryptocurrency , the aspect of marketing. It is said that litecoin is the silver to bitcoin’s gold, if that is the case dogecoin is the bronze, might not have the value of silver and gold but bronze is more used by ordinary people and that will make it the most successful virtual currency. But have in mind Rome wasn’t built in a day, if you prefer to invest in something that will rise up or fall down fast, dogecoin is not the case because dogecoin will gradually rise up and stabilised, not overvalued, not undervalued , a currency for the ordinary people.
Posted on: Sun, 30 Mar 2014 15:09:54 +0000