Dogecoin is in the news again. It feels like every week, one way or another, Dogecoin sneaks into headlines across the World. Think about it, how often have you heard someone mention to you about Dogecoin or see something Dogecoin related with Elon musk? Here is why Dogecoin is in the news again.
Dogecoin and POW
Ethereum just recently merged to POS, proof of stake, removing itself from the POW, proof of work, technology. Dogecoin is still on the POW blockchain technology side. With Ethereum merging out of the way, it is now in 2nd place on the marketplace for POW. This puts $Doge squarely in between 2 of the heavy hitters with Bitcoin in 1st and Ethereum Classic in 3rd. What exactly does this mean? Well, Dogecoin has no confirmed supply meaning there is an infinite amount of it available at any given time. Having this supply problem means lack of value because there is no scarcity for the token.
Now this looks good on paper but again does not translate to real value for holders. If Dogecoin founders and owners decided to limit the supply this would give fangs to Dogecoin. Since Ethereum merged to POS and mining is no longer necessary, miners are looking for new sources of income. $Doge can be mined but the supply deters possible miners and they will more than likely jump to Ethereum Classic. However, Dogecoin will not ever disappear as Elon Musk seems to always have a shine for it.
$Doge’s A-List Supporters
Elon Musk has always been public figure supporting Doge in one way or another. From tweeting about, to having merchandise associated with Tesla purchasable with $Doge or speaking about it on SNL, Elon is an advocator for the meme token. Just recently, he announced that the Cyber-Whistle will purchasable exclusively with Dogecoin ($Doge). The Cyberwhistle is made from stainless steel and the website adds that it has an integrated attachment feature. What that feature is, has yet to be disclosed or determined. The cost was 1000 $Doge or approximately $60USD. This particular product is already sold out and deliveries are expected in the next 4 to 6 weeks according to the Tesla merchandise store. You can also purchase a cyber-truck beanie from the Tesla merchandise store for 600 Dogecoin. You can view the store here.
What to Can You Buy with $Doge
Elon Musk’s store is one of the few utilities that Dogecoin has. However, with Ethereum’s migration to the Proof of Stake technology, it leaves the door open for Dogecoin miners. Miners will want to replace the income they lost with Ethereum merging to proof of stake. While Bitcoin seems like the obvious option, it is extremely difficult to mine and requires complex algorithms. Dogecoin may not be too difficult to mine in comparison to Bitcoin which makes it attractive to miners as a new alternative. The draw back is that if it is not straightforward possible to mine Dogecoin, then this means nothing for the coin. Dallas Maverick’s owner, Mark Cuban, also has merchandise available for sale with $Doge as its payment option. Through the use of Bitpay, you can purchase merchandise and tickets for the Dallas Mavericks with $Doge. Seems like Doge has some uses in some select companies.
Dogecoin Current Takeaways
Dogecoin will need to figure out how to increase its utility or add a cap to the supply to increase scarcity. When $Doge first started back in 2013 as meme, no one thought it would ever become the mainstay that it is today. $Doge may go to higher levels and become a true altcoin on the POW network. In order to do this, it needs to gain some utility and fundamentals first. Will you shy away from investing in $Doge or does the powerhouse combination of Elon Musk and Mark Cuban make it an attractive investment? That is the question with the answer residing in your own desires.
