Dogecoin (DOGE) has outperformed a good portion of the crypto market for the whole of 2018. That’s something quite exceptional for an inflationary coin that has over 100 billion coins in circulation, and presents itself as a joke. But there is something about Dogecoin that not many coins have managed to replicate. What makes Doge a fundamentally strong coin is the fact that it combines a strong community-driven brand presence, true decentralization, and inflation. These 3 give Doge its strong market presence at the moment, and will push up its adoption as the currency of the internet going into the future. So how do the above factors interact to give Dogecoin (DOGE) value, and place it on a growth path going into the future?
Well, Dogecoin has over the years, built a brand presence around a community of friendly people. Unlike other crypto projects, this community is not brought together by price expectations, but by fun. This aspect to doge coupled with the fact that it is inflationary incentivizes community members to spend their Dogecoin (DOGE) for different purposes such as tipping each other, or buying stuff online.
There is no prevailing urge to hoard it. This gives Dogecoin value in the sense that it is being used for the purpose it was meant for, and that’s the exchange of value over the internet. In essence, as the Dogecoin community continues to grow, so will its usage, in the market, and by extension is its underlying value. That’s why it has been performing well in the market, better than deflationary coins that in theory should be performing better.
Then there is the fact that Dogecoin (DOGE) is truly decentralized. A lot of investors don’t understand the value of decentralization in cryptocurrencies. There is still a huge number of investors who are stuck in the company model of operations, and the idea that there needs to be a figurehead, something like a CEO for a crypto to thrive. However, the whole idea of crypto right from the bitcoin whitepaper was decentralized peer-to-peer money that cannot be censored by anyone.
In the future as regulators focus more on crypto space, there are lots of cryptos that will be declared unregistered securities. This will curtail their adoption significantly. This gives an edge to truly decentralized cryptos that have figureheads/CEOs behind them. For context purposes, a billion dollar crypto fund recently skipped a few major cryptos from their portfolio. Their argument was that such cryptos posed a risk in case they were to be declared securities.
Based on the above, it is clear that Dogecoin is unique, and has what it takes to grow. It is truly decentralized with no corporate hierarchy, and it is used for the purpose it was meant for. When these are combined with the fact that it has a strong community supporting it, it won’t be surprising if it edges into the top 10, in the future. Dogecoin (DOGE) currently ranks 20th on market cap, and has been trading firmly around $0.0057.