Doge coin is created by Billy markus and Jackson palmer on Dec 6 2013 started as first meme coin and eventually reached a market capitalisation of 85 billion on May 5 2021, today doge coin is considered as alternative to bitcoin and when comes to entrepreneur Elon Musk he loves Dogecoin and he also frequently promote doge coin on various platforms mainly on his twitter handle.
Recently, Elon Musk become 2021 Time magazine person of the year and after this he promoted doge coin once again on his twitter handle by tweeting tesla will make some merch buyable with doge and see how it goes and that tweet become so viral which surged Doge coin price more then 20%.
Elon musk in recent interview says doge coin is better suitable for transactions over bitcoin and he is right because Dogecoin takes 1 minute to accept transactions while bitcoin takes 10 minutes, including that doge coin have infinite supply while bitcoin have limited supply, every minute miners rewarded with 10,000 doge coins, per day 14 million and for year 5 billion doge coins will enter into circulation, this feat is achievable due to scrypt hashing algorithm which require fewer resources and less powerful devices to mine doge coin and scrypt algorithm uses proof of work protocol same of bitcoin for security.
Elon Musk also states that bitcoin is store of value so investors like to hold instead to spend while doge coin is not good to store value and it is slightly inflationary which is why investors sell it or use it for payments including that doge coin transaction fee is low while bitcoin is fee is high.
The future of doge coins seems fruitful if more companies like tesla accept doge coin but it’s not easy task many things play role like government policies, and people’s interest on doge coin, even though doge coin seems popular but is only among it’s community and the buzz created by media and Elon Musk, in reality crypto investors prefer bitcoin, ethereum and stable coins like USDT, DAI etc.
Government polices determine the success and usage of crypto currencies, while US is increasing taxes on crypto currency, china banned mining and declared all crypto currencies illegal, and many more countries regulating crypto currencies including India with crypto regulation bill 2021, so doge coin or any other crypto currency will be only in use when they are legally recognised by government, so future of Dogecoin is unpredictable.
While, there are some countries where crypto currency is legal for instance in El Salvador crypto currency is legal and the country president himself buy Bitcoins and promote it even he is building a bitcoin city so they may adopt doge coin to in future if they’re interested to make complete legal recognition and framework for crypto’s.
However, the security problems of crypto currency still haunts many countries including the countries where it is legalised, from past few years even very recently many crypto exchanges got hacked Bitmark, Kucoin, Bitgrail, Poly network and coin heck where millions worth crypto tokens were stolen and still they were unable to recover them, so the users hard earned money vanished and this type of incidents causing concern and making investors to rethink, because right now no country government audit or take responsibility of crypto currency losses so the safety of crypto currency in question, while market volatility is different story.
Finally, the future of doge coin is directly connected with crypto currency, if the governments make friendly policies then doge coin or any other currency can survive else vanish, right now crypto currency is on high way where there are no traffic signals to control it’s run, so untill government control and audit moments of crypto currency, other people who are on same highway won’t get safety, so what do you think? do you say your views on our analysis in our comment section below, see ya 🙂