Tomorrow is the self-proclaimed Doge Day! 

 

You might have heard about Doge coin, it's creation as a joke in 2013 and it's meteoric rise as it is pushed by social media, Reddit's Wallstreetbets and the more than occasional tweet by Elon Musk; but what is Doge coin? Should you buy it or not?

 

Doge coin started as a meme, a mockery of the cryptocurrency space that the founder didn’t take seriously. It started life as a fork of Litecoin, and it still survives to this day with very little development work. Before an update released in February, forced by the surge in interest in the coin, the last upgrade to the system had been performed in June 2019, 

 

The price of Dogecoin has experienced a real meteoric rise, going from less than 1 cent in December, to 40 cents as I write this article. It is now the 5th largest coin by market cap, larger than Tether, Cardano, Polkadot, Litecoin.

 

Let's look at what Doge coin can do, it's economic fundamentals and the security of it's blockchain.

 

First of all, what can you do with Doge coin? Ehm, not much! You can use it for payments and as a store of value (maybe a little volatile for that!!!) but not much more. It doesn't have smart contract capabilities, nor you can use it for NFTs . It is similar to Bitcoin from that point of view, but with a miniscule network in comparison.

 

What about Tokenomics? The network has a large total token supply of 117,765,025,366 DOGE and no fixed limit, a deliberate tokenomics decision in order to keep the price of each individual token low. 

An original intention for DOGE was to become an online tipping medium to leave small appreciation gifts for reddit comments, youtube videos and charity initiatives, so small individual token denominations support this utility.

The largest 11 holders of DOGE control 46% of the coins in circulation.

 

Is the network reliable? Not really, a lot of the nodes are set up incorrectly, and this causes problems in syncing wallets. The network is vulnerable to a 51% attack, which could be performed relatively inexpensively. The developers' team of 5 does what it can, but it is obviously  undersized to deal with the surge of new users.

 

Could it go to $1? Your guess is as good as mine. There is a lot of hype and interest in it, and this could carry it to another double digit increase in value in the next couple of days, but the social media interest is fickle and could shift to the next shiny coin just as quickly, and the price could collapse just as fast as it has risen. If (I could say when) the bubble bursts, it will leave a lot of new investors licking their wounds, as it may not be easy to exit position quickly enough. I am happy to sit on the sidelines on this one and watch the action play out; if you are thinking of going in and putting money on this rollercoaster,please be extremely careful as you don't want to be left holding coins bought at an overinflated price, which may never reach certain heights again.

 

History may prove me wrong, but I don't see a long term future for Doge coin, as there are better options for what it does, which is not much in the first place. 

 

Enjoy Doge coin day, and feel free to comment below,  weather you agree with me or not.