Have you ever wondered if will dogecoins have a value spike like Bitcoin does? I have looked around for months and have not found anyone who is even willing to consider that they may have a use for the coin. There are a few things that make it different though, and I am going to discuss them today in this article.
One difference is the market cap. If you look at the market caps of all the top currencies compared to each other, you will see that the Doge Coins has a very small cap.
However, it is comparable to the gold market cap. That does not mean that it has no value, but it is nowhere near as large as some of the other assets that people have. This is because of the low supply compared to others.
Another thing that makes it unique is the demand for it. Just like with many other commodities, when there is a high demand for something there will be a high supply. When there is a low supply there will be a lower demand. This means that the price will be driven up or down depending on how much is in supply and how much is wanted.
The same applies to the Doge Coins. There are not nearly enough supply to create an interest in getting into them. If you think about it, the whole point of having them is for a free transaction service. If there was no need for this service, people would not be interested in spending money on them. They are like any other form of commodity.
The value is based on the demand. This is actually the main reason that they have a high value.
Because there is so little demand for them, they have to be worth more than they are. In fact, there have been several instances where people have bought them for fifty cents and then traded them for one thousand dollars. It is not uncommon for a Doge wallet to hold ten times the value that they started out with.
The future is still unknown. There is no telling what direction the value will go. Many experts are predicting that it will go up but then it could get wiped out by the Chinese. The government in China does not like the Doge Coins being used in public. That is why many of them are being destroyed. However, there are those who are trying to take advantage of the situation by creating fake Doge Coins and selling them online.
There is a lot that goes into determining the value of a Doge Coin.
Some people base their opinion on how many doges are available for sale at any given time. Others look into how easy it is to obtain them and how easy it is to sell them online. Then there are those who try to figure out how much a Doge should be worth based on the market trends. No matter which group you fall into, there is more than enough information to make an informed decision about whether or not the Doge Coins is worth your while.
In order to make money with Doge Coins, you do not need to know much at all about them. But you must be able to understand their value. Since they are new, the value will constantly fluctuate. Many investors have gotten in on the action, buying up as many as they can before the price goes up. Then they turn around and sell, profiting from the short-term fluctuations.