Anyone interested in investing in Dogecoin will want to know what its future prospects for the rest of the decade. Dogecoin is a cryptocurrency, which started up as a kind of joke. It was based on a very cute logo of a Shiba Inu (a Japanese pet dog). The humor behind it seems to have captured the essence of the decentralized cryptocurrency industry. The cheeky Dogecoin is a counterpoint to the stuffy traditional financial institutions. The question is though, is it still a joke or is it worth investing in? Let’s have a look at where it might be heading.
It is of course very difficult to predict the future, but in terms of both fiat or cryptocurrencies there are many analytical tools available to experts to help them looks at trends and make predictions. There are many factors that can effect the value of a cryptocurrency, including potential future regulation, which in the U.S. is a hot topic. So even an expert’s prediction is only an opinion, and you should not take it as financial advice. Having said that, let’s continue to look ahead.
Having reviewed the expert’s opinions, we can say that the 2030 value of Dogecoin is likely to be in the region of $2.11.
The Best Things about Dogecoin
- Users are a strong and vibrant community with a sense of fun, so by investing in Dogecoin you get to become one of them.
- It is one of the top performing cryptocurrencies.
- Some experts believe it to be the best cryptocurrency under $1.
- Dogecoin operates on a fork of Litecoin’s blockchain and using the same Scrypt algorithm. With Dogecoin a new block of transactions completes every minute, compared to 2.5 minutes for Litecoin. This means that transactions are much quicker and cheaper on Dogecoin than on Litecoin, and much more so than Bitcoin.
- Popular with the mainstream media and also has support from big celebrities (notably Elon Musk), Dogecoin gets a lot of attention that can draw in investors and add to its success.
- Accepted by over 2000 merchants world-wide.
Is Dogecoin a Good Investment?
Some experts believe that all of the good points about Dogecoin are effectively cancelled out by its lack of real-world utility. It was designed to transfer value between people, and while it does do that effectively and cheaply, it hasn’t ever really moved beyond that.
Compare that to a cryptocurrency such as Ethereum (ETH). Ethereum can handle much more complex financial transactions as well as running data applications over its decentralized network. It also offers ‘smart’ contracts, where parties make agreements using the blockchain. Once all parties meet the conditions, the contract self-executes and payment is made automatically.
Unlike ETH then, Dogecoin lacks any additional uses that would lead to increasing demand from a larger audience. Investment therefore is more suited to the casual investor or someone looking for higher-risk speculation.
In addition, Dogecoin is an unlimited currency. There is no cap on how many Dogecoin the company issues, unlike many of the others such as Bitcoin. Because of this it is subject to devaluation as the supply increases.
The downside of its popularity in the media and with support from the likes of Elon Musk, is that even the huge upward swings that Dogecoin has had, for example in mid 2021, were based on mentions in the media and other external factors rather than fundamental utility. Having said that, it may not be most the experts’ top pick, but it definitely seems like the most fun!