Dogecoin (DOGE), an open-source cryptocurrency, has made surprising leaps in value since its launch in 2013.
In fact, it spiked more than 20% in December 2021 after Elon Musk openly supported it and said they would accept the cryptocurrency for Tesla goods. Several celebrities then joined the DOGE bandwagon.
In months, Dogecoin rose from 10 cents to 70 cents and the entire crypto-economy was taken by surprise. Many wondered, “Can Dogecoin reach 100 or even $1,000?”
If you’re among those people, you’ve come to the right place. Let’s stop guessing and look at the data and trends to answer that question once and for all. But to better appreciate that, let’s first look into Dogecoin’s history.
What is Dogecoin and How Did It Get Here?
At its heart, Dogecoin is a cryptocurrency created by software engineers Jackson Palmer and Billy Markus. It was initially meant as a lighthearted joke about the speculations in cryptocurrencies.
The creators never envisioned Dogecoin representing a material holding in a diversified portfolio or an investment that would store an appreciable value.
But fast forward to 2022, and the meme-inspired cryptocurrency reached a market value of over $85 billion. This achievement was after getting a high price of $0.69. It also became the fourth-largest cryptocurrency by market cap, published by CoinMarketCap.
The other most popular types of cryptocurrencies include Bitcoin (BTC – worth over $386 billion), Ethereum (ETH – worth over $168 billion), and Tether (USDT – worth over $68 billion by market cap.
How Does Dogecoin Work?
Dogecoin operates on a peer-to-peer transaction network referred to as the blockchain. Its digital ledger is constantly updated with new transactions, and cryptography is applied to keep all transactions secure.
Furthermore, the DOGE blockchain utilizes a proof of work consensus mechanism to process transactions and records on the blockchain. It does so by using miners’ computers to solve complex mathematical equations.
In return for supporting the Dogecoin blockchain, miners earn additional Dogecoin that they can sell on the open market or put on hold. They may use Dogecoin for purchases and payments, but not an effective store of value as it has no lifetime cap. It means this cryptocurrency, by design, is highly inflationary.
Furthermore, millions of new Dogecoins are created daily to reward the miners for their work, making it difficult for speculative price gains.
Related: Will Dogecoin Ever Be Capped?
So, Can Dogecoin Reach $1000?
No, Dogecoin will never get to $1,000 per coin. While digital currencies show promise and Dogecoin is a high-ranking digital currency, they can only replace the dollar as the primary medium of international strength and exchange.
Moreover, there are various reasons why the odds are stacked against Dogecoin going much higher.
One reason Dogecoin won’t reach the said amount is that there needs to be more money in the world. Every $1 increase in the DOGE price would require an additional $180 billion total market cap. And to even reach $100 by 2030, it would need an $18 trillion investment.
Compare that to the global GDP, estimated to be around $87 trillion. The United States GDP is about $21 trillion, and China’s is $15 trillion. If you reach the $100 Dogecoin price, you require a market capitalization greater than the entire China GDP by 2030. Anyone with a basic understanding of the markets can see that this will not happen.
Even if investors will put money into the said cryptocurrency, there needs to be a technical analysis on whether Dogecoin blockchain tech can handle that considerable volume.
Another reason DOGE won’t reach $1000 is that its price also fluctuates with the economy, like many cryptocurrencies. It had a total market cap of almost $80 billion, and its price skyrocketed to $14,000%.
And since Dogecoin is subject to market changes, there will likely be price swings to happen along the way in either direction.
The third factor you’ll want to consider is the coin circulation limit. Dogecoin is mined every second, meaning it has a near-infinite supply. For every minute of the day, about 10,000 Dogecoins are mined, equating to roughly five billion Dogecoin per year.
This near-infinite supply can negatively affect the value of Dogecoin with time. The fact that it has a no coin cap and a higher block reward (10,000 Doge coins vs. Bitcoin at 6.25) makes it difficult to predict the price of Dogecoin.
What Will Dogecoin Be in 2025?
Predicting what Dogecoin will be like in 2025 is more about speculation. Like any investment vehicle, such as traditional money, there’s no absolute way to determine its value at a given time.
Is Dogecoin a Good Investment?
If you’re wondering if Dogecoin will still be a good investment, my answer is – it depends.
Those who purchased Dogecoin before 2021 may have reaped enormous rewards from the sudden increase in Dogecoin’s price this year. So, anyone who buys Dogecoin within the next ten years may enjoy the same benefit. However, there’s no way to guarantee that 100%. After all, Dogecoin is like other cryptocurrencies. Buying it still involves a specific risk.
A good strategy is to buy a few coins first. Then, familiarize yourself with the system. Avoid investing more than a small portion of your hard-earned money in a cryptocurrency, which started as a joke.
Suppose you’re paying enough attention to the cryptocurrency industry. In that case, you can invest your money in other promising cryptocurrencies, including Algorand, Curve, Harmony, Ethereum, Bitcoin, Seesaw Protocol, Tether, Binance Coin, Coronado, and Seesaw Protocol.
To date, over 20,000 cryptocurrency projects in the market represent the $952 billion crypto market.
The moral of this Dogecoin story is that Dogecoin won’t reach $1,000 because of the simple supply-and-demand dynamics.
So, there’s a high probability that Dogecoin will reach $1 or $10 per count. It’s only possible to get to $1,000 per coin. If you buy this crypto coin, seek professional financial advice, as its value may plummet or soar without warning.
Want to know more about crypto investments? Check out our other cryptocurrency guides at FoxyTrades.com.