While this sets Dogecoin apart from other cryptocurrencies such as Bitcoin, it’s certainly not a bad thing.
Each year, 5 billion coins are added to the total supply of Dogecoin.
Yes, you read that number correctly…
Let’s explore a few common questions around the Dogecoin cap and discuss whether Dogecoin’s lack of supply cap can be viewed as a positive reason to buy Dogecoin.
According to the creators, there will never be a cap on Dogecoin supply.
But when push comes to shove, it doesn’t really matter whether Dogecoin has a cap or not.
The supply of Dogecoin is simply too high.
This is why Dogecoin has such a high market cap, but a relatively low price when compared to Bitcoin.
As Dogecoin can’t be capped however, there is always going to be inflationary pressure from the market.
Relax crypto noobs, inflation isn’t the dirty word that you think it is.
There are currently around 135 billion Dogecoin in circulation and with only 5 billion coins being added to the total supply per year, the inflation rate is actually reducing.
Much supply, such wow.
So even though Dogecoin technically has an unlimited supply, it’s reducing inflation rate keeps it in check.
Just because an asset is deflationary doesn’t make it valuable.
It’s actually because of Dogecoin’s inflation that miners always are better incentivised to secure the network and keep transaction costs low.
You could say that inflation is actually putting the currency in cryptocurrency.
Dogecoin was always intended to be an internet meme tipping currency afterall.
Well, that’s the 64 million dollar question.
When asked how high can Dogecoin go, I’ve thrown ridiculous potential price targets like $100 out onto the page.
But do you want the real answer to how high Dogecoin can go?
Here it is:
AS MUCH AS SOMEONE IS WILLING TO PAY FOR IT
Right now the price of DOGE is being pumped by Robin Hood trading children and internet meme-lords who don’t give two fucks about whether Dogecoin can be capped.
They’re buying Dogecoin because the price is going up and they want a piece of the action.
Just make sure you’re not the last one to take a seat when the music inevitably stops.
Best of probabilities to you.
Direct from the desk of Dane Williams.
This blog is exclusive to leofinance.io
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This Dogecoin blog is exclusive to leofinance.io.
