If you are buying dogecoin because:
- You are doing it for short term profit (Which is a risky game you are playing)
- You are doing it for fun
I'm okay with this because you understand the dynamics involved.
But if you are doing it for long term profit...
Lets examine this:
Note: I calculated this when dogecoin was at $0.32 several days back (this might not reflect the price when you read this)
- Although there are many factors that drive Cryptocurrency price, this is a general way to calculate what the price of a cryptocurrency is going to be.
- When you are dividing, if the top number is higher, the answer will be a higher number.
- When you are dividing, if the bottom number is higher, the answer will be a lower number.
- In order for the Market Cap (Top Number) to go up, many people would have to buy dogecoin, but many people understand this is a meme coin or a pump/dump coin. They are using this as short term profit or self entertainment because there is no long term adoptation compare to other crypto currency projects.
- In order for the Circulating Supply (Bottom Number) to go down, they would have to stop mining dogecoin, but there is 14.4 Dogecoins being produced in one day which is 5 Billion Dogecoin a year.
- If you want DogeCoin to be $10 based on the circulating supply we have now, then the Market Cap would have to be 1.29 Trillion (Note: I calculated this several days back, so the number might be even higher now), that's if DOGECOIN STOPPED MINING and NEVER MAKE ANYMORE!
- How big is a 1.29 Trillion Market Cap? How much would it need to reach $10?
- Dogecoin would have to overtake Facebook and Tesla!
Once again, this is if Dogecoin stopped mining right now and produced no more Dogecoin supply, but Dogecoin will produce to infinity, it will not stop producing because there is no cap.
This is like trying to mop a wet floor that has a water leak and the water leak will never stop leaking. Yes, you can recruit more workers to mop the floor, but at some point the workers will quit and leave, then you are left mopping the water by yourself and eventually you will drown in the water.
Take your mop and go home!
PS: I'm NOT posting this in Dogecoin subreddit. I will get stoned to death.