Don’t get burned with Dogecoin

Today on r/Dogecoin a user posted a video of himself: he sat in a chair, his head concealed by a pillow case, a black revolver pressed to his temple. He ranted about the lies surrounding Dogecoin and said he planned to kill himself. All I know is that he lived long enough to post the video. It was quickly removed by mods.

So, before you buy Dogecoin, you should know what you are getting. Here’s a short summary:

Dogecoin has a huge supply. 129 billion coins. 10,000 coins are mined per minute. That’s 14 million new coins added to the supply every day, which adds up to about 1 billion coins added every eighty days.

Bitcoin has a maximum supply of 21 million coins. So, Dogecoin mints more coins every two days than Bitcoin will ever have in circulation. That’s why doge will never be priced like Bitcoin. And, in fact, at about $9 per Dogecoin, Dogecoin would equal Bitcoin in value.

Dogecoin has no real ecosystem to make it valuable. It is not fast: 33 transactions per second. ETH 2.0 can handle 100,000 per second. So Dogecoin can’t serve as a currency. It seems to have minimum dev work. And it’s fueled by people who think they are getting into doge early. If you buy now, you are not. Dogecoin is not the future of anything.

With Dogecoin, you are buying hype.

And hype might push Dogecoin to 69 cents. Maybe to $1…but there is zero reason for doge to hold that value. In fact, at $1 per Dogecoin, with 1 billion coins added every 80 days, doge would need $1 billion in new investment every few months JUST TO MAINTAIN $1.00

Also, be aware that $129 billion (doge at $1) is a huge market cap. That’s the same value as STARBUCKS. And doge has almost zero use-case scenarios. Sure you can buy some Mavs merch. Maybe find some occasional doge fans that accept it as payment. But doge can’t scale to be a currency. It’s too slow.

Doge, frankly, is way overpriced right now. And Doge is going to have trouble maintaining it’s value due to its always-expanding supply. If the hype falls off just a bit—doge will fall, too. And twitter’s algorithm is heavily weighted against repeat trends. You might make money with doge, but it is far from guaranteed, and there is a fairly hard ceiling due to doge’s constant supply.

If you buy doge, you are buying hype and Elon Musk tweet energy and nothing else.

Be careful.