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Analysis of Dogecoin

analysis-of-dogecoin

By now I'm sure you have heard of doge, or dogecoin. Dogecoin was created on December 6th, 2013. Dogecoin is a cryptocurrency with a current price of $.644 with a current market cap of $83,432,846,427 . I will waste no time and jump right into it. There are 3 important factors when it comes to dogecoin.

1. It uses proof of work to validate transactions.
2. Has no real use case and no business partnerships.
3. Has an unlimited total supply.

Proof of work simply put, does not work. This algorithm uses a ton of energy, is not scalable, and usually has high fees associated with it when sending, receiving or transferring. There are 6 factors when measuring and investing in projects


Team
Solving a problem
Vision and strategy
Partnerships/ projects
Community
Tokenomics

Dogecoin fails at all of these but community. With that being said never underestimate 3 factors

Market sentiment/Maturity
Marketing
Speculation

This is why we see the crazy gains dogecoin has enjoyed. With just a few tweets this project that was literally a joke has sent it to the number 4 spot in terms of market cap.

Things to consider:
There are a lot of projects out there that are what you call pump and dumps. People buy the hype, the market sentiment, and the euphoria. They ride the bull run to a certain point, and then short that asset. This is common with crypto whales. They buy the said asset, they talk their books, they dump, and then repeat. This is sadly common. Leaving the lower investors holding the loss while they make out with huge profits. Market manipulation is so common because this market does not have regulation, it's not matured, and there's people who chase green candles only left to be holding the asset at a loss because they rode the hype train. Don't be caught in the noise. Invest what you can afford to lose, and only invest in projects with real use case and utility. Because in the long run that's what will drive the price. I don't want to bash any asset. If you are skilled and knowledgeable enough to trade in and out of these projects at a profit then by all means. Just know that trading these assets are very high risk. Projects like Dogecoin, Safemoon, Cum Rocket are a joke to me and highly unpredictable. These can honestly turn out to be a rug pull. Do your own research. I'm against these types of investments altogether and currently do not hold any of these. They can be a great short term hold or your worst nightmare. My money goes to projects that have partnerships and utility. Always remember the 6 factors
Team
Solving a problem
Vision and strategy
Partnerships/ projects
Community
Tokenomics
Here is my analysis of Dogecoin

Team - 0/5
Solving a problem - 0/5
Vision and strategy - 1/5
Partnerships/ projects - 1/5
Community - 4/5
Tokenomics - 1/5

Overall - horrible investment idea

This content reflects the personal opinions of the author. It is accurate and true to the best of the author’s knowledge and should not be substituted for impartial fact or advice in legal, political, or personal matters.

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