⚜️I am NOT a financial advisor and this is NOT financial advice. If you read this post and still YOLO into DOGE, I wish you hella profit. Your success will never affect mine.⚜️
As Dogecoin has hit $0.45 recently, I’ve seen a lot of members in this sub argue back and forth why Dogecoin is a good investment.
I’ve even seen a user state “Dogecoin will be #2 soon. People literally don’t understand the value of memes. Humor will never get old nor go out of style”.
Now before the Doge army downvotes me into oblivion, let me explain myself.
Bitcoin has a supply limit. No coins can ever be added above 21 million, so it is considered a good store of value. Unlike Bitcoin, Dogecoin is inflationary and has no supply limit. Each minute, 10,000 Doge is added into the network. At this rate, miners add more than 5 billion coins per year.
Think about that. Each minute, 10,000 DOGE have to be bought just to keep it at the same price.
Now I know what you might be thinking; Doge is only $0.45, that only equals $4500 per minute! What you do not think about, though, is the fact that this crypto has no utility. Yes, it can be spent, and yes, it is pumped by Elon Musk and Mark Cuban. But other than that, it really isn’t utilized. You know why every person I know is invested into it in the first place? To make money. That’s it.
To compare, let’s take the US Dollar. This sub knows that the USD has been a much less than optimal store of value over the years. Let’s compare the inflation rates to Dogecoin.
From 1913-2021, the US Dollar has had an average inflation rate of 3.10%. (Has been MUCH worse since COVID, but that’s besides the point.)
With Dogecoin’s supply addition protocol, the inflation rate over the past years has been 4.68%. Now of course the set amount added is static, so theoretically the inflation rate would decrease over time, but this is still less than optimal.
I made this post to protect the new ones entering this space and being attempted to throw a substantial amount into DOGE. If your goal is to make a long term investment, look elsewhere.
Now don’t get it twisted; I’ve made money from DOGE too. But it is a short term interest coin and a pump and dump coin - I believe it should be treated as such.
Lastly, this isn’t a comparison to any other coin. I’m just providing a bit of information to those new members who flock to any coin shilled to them.
I wish you all the best, and please research coins before you throw money into them.
Edit 1: I did this to save people from a risky investment. I didn’t say DOGE was a bad short term investment, just a bad long term investment. If you can ride the hype and make money, why wouldn’t you do that?? I just provided some tokenomics :)
Edit 2: Read some of these comments. People have insulted me, insulted my intelligence, said I was just jealous, called me a liar, etc. I’ve also received multiple threats from people both posted on here and sent to me privately. I still wish the best for these people and truly hope they get to a better place mentally, regardless of how much money is at stake...