Will Dogecoin be a good boy or a naughty one in 2018 and beyond?
Launched in 2013, Dogecoin is something of a legend in cryptocurrency circles. What started out as little more than a joke based on a popular Internet meme soon gained traction, and several years later the coin featuring an iconic Shiba Inu mascot still features in the list of the world’s top 50 cryptocurrencies by market cap.
But if you’re thinking of buying DOGE, you’re probably looking for the answer to one very important question – is Dogecoin about to jump in price, or has this joke finally reached its use-by date?
To find the answer, you’ll need to examine the many factors contributing to the price movements of this peer-to-peer crypto coin.
|Launch date||6 December 2013|
Dogecoin price prediction
Cryptocurrencies are complex and speculative, and they’re also well known for being extremely volatile. With this in mind, there are myriad factors that can potentially drive the price of a coin upwards, or drag it in the opposite direction.
If you’re thinking of buying any Dogecoin, some of the key factors that might influence its price are listed in the table below.
What could drive Dogecoin’s growth?
- Availability. If you’re new to cryptocurrency and looking to build a portfolio of coins and tokens, Dogecoin is easily available on a wide range of exchanges. This can potentially increase demand and enhance the public perception of the currency’s legitimacy.
- Novelty value. In the complicated and intimidating world of cryptocurrencies, Dogecoin is fun, friendly and approachable. It pokes fun at all the hype and buzzwords that surround many crypto projects, and one look at its website makes it clear that this project doesn’t take itself too seriously. There’s a strong culture around popular online memes and Dogecoin does have a strong base of parochial supporters.
- Established coin. The fact that Dogecoin was launched in 2013 and is still around in 2018 shouldn’t be sneezed at. That’s a long time in the world of cryptocurrencies and helps DOGE achieve legitimacy and credibility that other coins don’t have.
- Tipping and community support. Dogecoin can be used to reward other Internet users quickly and easily. It’s quite common to see Reddit and Twitter users “tipping” small amounts of DOGE to the authors of entertaining or insightful posts. Not only does this reward people for creating good content, but it also helps spread awareness about this unique digital currency.
- The dogethereum bridge. In February 2018, Dogecoin featured in TrueBit, one of Ethereum’s ongoing scalability projects. In a test nicknamed the “dogethereum bridge”, Dogecoin was sent to Ethereum's Rinkeby testnet and became a distinct asset on that separate blockchain.
What could hold Dogecoin back?
- Lack of widespread acceptance. The more merchants and people that accept DOGE as a form of payment, the greater the demand for the currency. However, unless Dogecoin can find support on a much wider range of platforms, this could place a limit on any price rises.
- Plenty of competition. The cryptocurrency sphere is becoming increasingly competitive and professional, expertly-designed currencies are being created all the time. You’ll need to ask yourself whether a meme-based currency has what it takes to compete with these other coins and tokens.
- Lack of ongoing development. In an interview with CoinDesk in March 2017, Dogecoin co-founder Jackson Palmer (who left the Dogecoin team in 2015) said: “New features aren’t being implemented into Dogecoin because there’s no active development anymore. Eventually, it will become outdated. And with that, the network will organically wind down.” While Palmer is no longer involved with Dogecoin, his statement does raise serious questions about the currency’s longevity.
- Joke status. Can a coin that started out as a joke really be taken seriously? In the increasingly serious and professional world of cryptocurrency, Dogecoin is something of an anomaly. While it’s experienced a wild ride and exceeded all expectations, is the joke finally coming to an end?
- Large supply. Dogecoin was originally meant to have a maximum supply of 100 billion coins, but the set limit on the number of coins that can be produced has since been lifted. According to CoinMarketCap, at the time of writing (22/03/2018) the circulating supply of Dogecoin was 113,670,063,569 DOGE. This never-ending supply will likely prevent the price of DOGE reaching astronomical heights.
Where to buy Dogecoin
There are several coins and tokens that could be seen as Dogecoin competitors, so you’ll need to consider their performance when predicting DOGE price fluctuations. Competitors to consider include:
- Bitcoin (BTC). The world’s biggest and most famous cryptocurrency needs no introduction. Though it’s currently battling scaling issues, no other coin comes close in terms of market cap or widespread recognition.
- Litecoin (LTC). The silver to bitcoin’s gold, Litecoin also offers fast transactions and minimal fees. Created in 2011, it’s a top five coin in terms of market cap at the time of writing.
- Steem (STEEM). The cryptocurrency that powers the platform Steemit, Steem is used to reward the creators of popular content.
Beyond 2018: What does the future hold for Dogecoin?
If you could travel back in time to the launch of Dogecoin in late 2013 and tell the coin’s founders that DOGE would still be alive and kicking in 2018, they’d probably have laughed at you. However, this much-loved currency has become something of an icon in the crypto community and experienced some remarkable highs along the way, headlined by reaching a market cap of more than US$1 billion in January 2018.
But while Dogecoin has exceeded even the most optimistic Shiba Inu’s wildest expectations, many commentators believe that its wild ride must soon come to an end. When you consider the origins of this cryptocurrency, it’s hard to see how it can be expected to compete against the expertly-designed and professionally backed coins and tokens available on cryptocurrency markets today.
Think about it. If you were new to cryptocurrency and looking to buy a stake in just one coin, which would you choose – the project with a hard working development team, strong financial support and a clear vision for the future, or the joke coin based on a viral Internet meme?
That said, Dogecoin does have a strong and vibrant community of parochial supporters who simply do not want to see the coin die. Its popularity for use in social media tipping and micropayments is a big advantage, while its widespread availability and emphasis on simplicity make it easily accessible to the masses. Throw in the fact that it offers fast transactions and minimal fees, and it’s clear that Dogecoin is a practical currency for everyday use.
But are those factors enough to help it survive in an increasingly competitive world? You be the judge.
Dogecoin holds a unique and cherished place in cryptocurrency folklore. It’s fun and unintimidating, but also provides impressive practicality behind its light-hearted exterior. However, there are some serious question marks around whether or not it can not only survive but also thrive in the crowded and increasingly professional world of cryptocurrency.
If you’re thinking of buying any DOGE, make sure you carefully consider the factors that could drive its value up or down before making a purchase.
At the time of writing, the author holds IOTA and XLM.