Should I Sell My Dogecoin in 2023?

Dogecoin is a cryptocurrency created on December 6, 2013 based on the popular "Doge" internet meme, and has the Shiba Inu emblazoned on its logo.

The code base of the project is a fork of Litecoin, which inherits most of the same functions such as hashing algorithm, the only difference is branding and large supply inflation.

The Original of Dogecoin

Born to Mock

The original dogecoin was created to flirt with the idea that everyone could create a coin. 2013 was a time when the cryptocurrency world was in an endless frenzy, BTC was over $100 in October and almost 10 times that by December, many people seemed to see the code to wealth, so they just copied and pasted and made up a coin name and sold it directly to others.

The cryptocurrency scene of that era was rampant with junk coins that ordinary people couldn't grasp, so most fell into the category of harvested leeks.

Dogecoin1.0: Era of Justice

The fate of these investors caught the eye of a young man named Jackson Palmer. The righteous felt quite upset about this shameless coin distribution, and in order to express his mockery of the BTC, he decided to use the hottest Shiba Inu terrier on the internet at that time as an emoji and then Copy and posted a picture of the digital currency on the internet, the emoji seemed to be advising everyone The emoji seemed to be urging everyone to stop using coin speculation as a shortcut to riches.

At first Jackson would also advise investors who wanted to buy dog coins that there was really no value in them and to stop buying them. But the number of investors was far greater than he could have imagined, and he could not persuade them on his own. As Jackson was struggling, he received a phone call and was contacted by an important person, who was it? Billy Markus is a software engineer by profession. Billy shares Jackson's passion for justice and his dislike of cryptocurrency scams.

So after a long talk, the two decided to enhance Dogecoin through technical means, making it a real virtual value currency, and then using it to expose the scam that the cottage coins were issuing.

The two founders created Dogecoin to expose the Bitcoin scam. They initially believed that Satoshi Nakamoto's invention of Bitcoin was a trampling on everyone's intelligence, so they designed Dogecoin to be completely the opposite of Bitcoin.

For example, one of the highlights of Bitcoin is its scarcity, with only 21 million coins in total, so Dogecoins were put on sale indefinitely, and 100 billion were issued from the start, with another 5 billion issued every year - even a plutonium wouldn't dare to do that. At the same time, to make the most of their mockery of Bitcoin, they changed the code mining mine in Bitcoin to a direct hole-dig.

It took only three hours before and after the birth of Dogecoin, bearing in mind that Bitcoin took close to a year from whitepaper to birth, and Ether took two years, while Dogecoin didn't even have a whitepaper.

However, in those days, many people had blown virtual currencies out of the water. Dogecoin not only did not have all the attributes of a virtual currency, but also deliberately defied the logic of cryptocurrency investment, in order to let people see some cottage coins and expose the outright scam that was cottage coins.

So the Dogecoin at that time had a very important mission, which was to protect investors, and we can call the Dogecoin of that era the 1.0 era of justice.

Dogecoin Goes Viral

The Dogecoin, which had no value, no technology and no application scenario, then went live and caused an overwhelming response on Reddit, a US-based posting board. At that time, Jackson and Billy decided to give out free Dogecoins to let more people know about virtual currencies and see some cottage coins under the banner of virtual currencies. At that time, many fans were given a lot of Dogecoins, and the American culture of tipping played a major role in the development of Dogecoins.

Capital Never Stops

Dogecoins Were Used for Rewarding

After getting Dogecoins for free, some people would send tens of thousands of Dogecoins to their acquaintances as red packets, some would reward female hosts with millions of Dogecoins, and some even took tens of millions of Dogecoins to donate. After Reddit, the cradle of Dogecoins, supported Dogecoin payments, users used Dogecoins instead of likes, and this coin was not worth much in reality, but in the virtual world it could give people a great sense of accomplishment.

With the high frequency of Dogecoin use on the internet, more and more users have joined the ranks of rewarding, which has not only brought about the fire of Dogecoin but also the Reddit platform. Due to the value of Dogecoin traffic, more platforms have started to accept Dogecoin rewarding, and users have organized themselves many very creative activities.

New uses for Dogecoin

In 2014, Dogecoin users saw that the Jamaican bobsled team could not make it to the Winter Olympics in Russia because they could not raise the money to travel, so they organised their own donations to help the team compete.

Then Dogecoin users took it upon themselves to donate to grassroots driver Josh to help him achieve his racing dreams by competing in American sports car racing.

Later, the Dogecoin community raised $30,000 to dig a water well for a small village in Kenya, Africa, solving the problem of poor drinking water in the area.

There were many more charity projects to follow. Although the money was not much, the Dogecoin community used their actions to spread goodwill and build up a lot of reputation for Dogecoin.

Dogecoin exceeded 10 million

In this way, Dogecoin has existed harmoniously and steadily for 6 years under the state of full user autonomy and effort, and the price has increased 10 times, although the price of $0.002 is still very low, but the user base of Dogecoin has exceeded 10 million, and the market value has reached $1 billion.

As Dogecoin became more and more used on the internet, more and more people knew about it, and before long Dogecoin actually became a popular virtual currency on social media, and at the most exaggerated time there was even a queue for the coins. This situation was the last thing the founders wanted to see, as Dogecoin had a hype attribute, but capital never stops.

Dogecoin 2.0

Hype Gimmick

With the involvement of capital forces, Dogecoin started to change its flavor. In the past, people held Dogecoins just for entertainment, but now more and more people began to focus on the price of Dogecoins, more and more people began to care whether Dogecoins could make money or not, and some people even began to sell the Dogecoins in their hands at an explicit price. This kind of behavior undoubtedly pulled down the various cottage coins that were casually ICO at that time.

At this time, Dogecoin began to leave its era of justice 1.0 and began to evolve towards the era of hype 2.0. Finally in 2015 Jackson took his own exit from Circle B as a warning to the world to stay away from cottage coin scams. Another founder, Billy, also emptied all his Dogecoins, traded them in for a used Toyota, and disappeared into obscurity. The Dogecoins he sold at the time are now worth $40 million.

At this point, the bigwigs in the cryptocurrency world also started to fan the flames of a bearish Dogecoin, citing the fact that there was little room for future appreciation in such an infinite number of coins, and that they felt that only a fixed and scarce asset like bitcoin was a valuable investment.

Yet ironically right after the denial of the big boys and the exit of the founders, by normal logic, Dogecoin must be toast. But don't you forget that virtual currencies exist to be decentralized, and if the coin hangs after a founder goes, then what is decentralization?

Dogecoin Is Being Used More Frequently

Since then Dogecoin has officially started its drone mode in its 2.0 era. As time went on, Dogecoin started to appear to be passed on from person to person, not only Reddit, Facebook, Twitter, etc., all appear to have Dogecoin bounties. Dogecoin this time out of the loop is naturally ushered in a wave of crazy, and coin enthusiasts also found that after the crazy rise this coin actually did not return to zero, and even out of an unusually strong trend.

How to Buy Dogecoin

Dogecoin is currently available on some exchanges. Both Binance and Kraken support Dogecoin. Most importantly, these exchanges are fiat channels. You can buy cryptocurrencies directly with your debit or credit card. First, you need to fund your account and then convert your fiat currency to bitcoin, ether or any other currency.

How to store Dogecoin

There are now many ways to store Dogecoin. One of the safest ways is to deposit into a Jaxx wallet. Jaxx Wallet is free to use on both Mac and Android devices. It can not only be used to store Dogecoin and other currencies, but also can be directly traded by users.

Reasons to Sell Your Dogecoin

It is well known that investing in the stock market is one of the best ways for accumulating wealth. But over the past few years, cryptocurrencies have proven that they can also produce life-changing returns. Despite a disappointing start to 2022, the cryptocurrency market has surged from $174 billion on 20 March 2020 to almost $1.8 trillion at the end of January. The returns on the S&P 500 are not even close.

Dogecoin (DOGE 4.89%) in particular has been a favorite of cryptocurrency fans. Over the past one, three and five years, its value has outpaced top digital assets such as Bitcoin (BTC -0.41%) and ethereum. But now may be a good time to part ways with the popular modal coins.

Here are some reasons why you should consider selling your dog coin this year.

Not Innovative

Dogecoin is a simple proof-of-work cryptocurrency that is merge-mined alongside Litecoin. Its use is limited to simple peer-to-peer transactions, and it does not provide any smart contract functionality. Dogecoin is similar to Bitcoin in many ways, although it has a much smaller network of miners. Therefore, in terms of security, Dogecoin is far less invulnerable than Bitcoin.

We should point out that the Dogecoin developers are working hard on an upgrade to the Dogecoin software, and recently announced a fund that will distribute 5 million DOGE to core developers who contribute to the Dogecoin release.

Nevertheless, we should not expect any groundbreaking innovations from the Dogecoin project, as it simply does not have the necessary resources. However, the developers are working on bug fixes and optimizations, and may integrate new technologies in the future.

Inflationary

Many investors are attracted to Bitcoin because it has a supply cap never more than 21 million BTC. Dogecoin takes a different approach, as its supply is inflated by about 5 billion DOGE per year, and there is no upper limit on how many DOGE exist. This supply inflation makes DOGE less attractive to some investors.

In the long run, however, Dogecoin’s inflation may prove beneficial as it will continue to provide a steady stream of rewards to miners. In the case of Bitcoin, miners are only incentivized with transaction fees after all BTC has been mined, and it remains to be seen whether this model is sustainable.

Crypto Market Still in Swing

Another reason why holding DOGE right now might not be the best idea is that the cryptocurrency bear market that started in 2022 is still ongoing. We’re seeing major industry players like Coinbase, Kraken, and Huobi laying off staff, and there’s a lot of unresolved disputes like the one between the Gemini cryptocurrency exchange and Digital Currency Group.

The macroeconomic outlook is also negative, with the World Bank recently warning that we are "dangerously close" to a global recession. Additionally, rising interest rates in the U.S. and Europe have greatly impacted investments in risky asset classes such as technology stocks and cryptocurrencies.

All of this has added to negative sentiment in the cryptocurrency market, which has already been hit by a plunge in cryptocurrency prices. Of the top 100 crypto assets by market capitalization, 63 have lost 50% or more in the last year. 30 of them have collapsed by 80% or more. As long as these conditions persist, it's hard to imagine Dogecoin doing well.

Lack of Real World Utility

Cryptocurrencies gained popularity by becoming part of popular culture and becoming an overnight internet sensation. Thus, real world utility is somewhat lacking.

While the founders of Dogecoin created Doge as a payment network, things didn't take shape accordingly. The overall acceptance and utility of cryptocurrencies is not that high yet.

Unlimited Supply

The total supply of dog food is 100 billion pieces. However, as of now, it has 133 billion coins. Bitcoin, on the other hand, is unique in its limited supply of 21 million.

This goes beyond basic concepts of economics. Since Dogecoin is not scarce, it affects its value in investor circles to some extent. All in all, the more doge there are in circulation, the less valuable it is, and that's what's been happening so far.

Speculative Assets

Dogecoin is a speculative asset. Currencies have experienced some highly volatile spikes and dips.

It is not the utility of the cryptocurrency that drives people to buy it, but the hope of an increase in the price of the cryptocurrency, which has witnessed a massive surge in price. However, when it comes to the fundamentals of cryptocurrencies, investors don't think much about it.

In the long run, Bitcoin's history has led people to trust it, however, Doge, no one has yet achieved this level of authority and goodwill.

Excessive market capitalization

With a current market cap of $8 billion, Dogecoin is among the top 10 cryptocurrencies by market capitalization, according to CoinMarketCap.

With "sell" sentiment rising among older investors, buying Doge now doesn't seem like a prudent step. Plus, investors who bought Doge before it broke out are already selling their investments.

Right now, it makes more sense to choose a cryptocurrency with a lower market cap, such as Tamadoge (TAMA). The best cryptocurrencies tend to be the ones that are available for purchase during ICOs or pre-sales at low valuations.

Reasons Not Selling Your Dogecoin

While the current situation is far from ideal, there are compelling reasons why now might not be the best time to sell Dogecoin.

Dogecoin still relative strengths in the cryptocurrency market

Even though Dogecoin plummeted 90% from its all-time high, if we compare it to other cryptocurrency markets, Dogecoin has held up very well. At the time of writing, the popular memory cryptocurrency is -49% over the past year. That's not pretty in itself, but Dogecoin looks a lot better if we consider that both Bitcoin and Ethereum are down about 58% over the same period.

Among the top 100 crypto assets by market capitalization, Dogecoin was the 27th best performer last year. Of the crypto assets that performed better than Dogecoin, 11 were stablecoins, so it can be said that only 16 cryptocurrencies in the top 100 performed better than DOGE in the last year.

With its $10.1 billion market capitalization, Dogecoin is currently the ninth-largest crypto asset by market capitalization. It is currently not far behind Cardano, which is in eighth place with a market capitalization of $10.6 billion.

Dogecoin has stood the test of time

The fact that Dogecoin has a market cap of over $10 billion in 2023 is especially impressive since DOGE was launched back in December 2013. At the time, it was easy to dismiss Dogecoin as a passing fad, but DOGE has stood the test of time and has become a relevant part of the cryptocurrency market to this day.

Elon Musk still seems to be a fan of Dogecoin

It’s no secret that the biggest factor in Dogecoin’s rise in 2021 is the support of billionaire entrepreneur Elon Musk, who often memes the cryptocurrency on social media. While Musk is a controversial figure to say the least, he still has a large and loyal following and is able to change markets with just one tweet.

Elon Musk still seems to be a fan of Dogecoin despite its plunge from all-time highs. In March 2022, Musk stated that he still owns DOGE and has no plans to sell it. In June 2022, Musk stated that he would continue to support Dogecoin.

Conclusion

As a long-term investment, Dogecoin has performed extremely well, even beating out most of the more serious cryptocurrency projects. So far, DOGE has been able to recover from the crash and eventually reach new all-time highs. Dogecoin may still have the potential to hit $1 if there is another bull run in the cryptocurrency.

However, the short-term outlook for Dogecoin is not positive due to the negative sentiment in the cryptocurrency market and poor macroeconomic conditions, which have stifled the market for speculative assets.