There are over 1500 cryptos in the market today, and the number keeps growing every day. However, the reality is that most of them have no real use in the market. A significant number of them are just speculative assets for traders. In fact, less than 5 cryptos have any real usage outside of exchange speculation. One of those 5 is Dogecoin (DOGE). Most people who trade in Dogecoin (DOGE) do so in exchange for something of value, not just speculating and waiting for the price to rise and sell to a greater fool. So what makes Dogecoin (DOGE) easy to spend, or rather, what incentivizes people to spend it?
There are several factors to it, but the most important of them is that Dogecoin is inflationary. Many critiques to Dogecoin (DOGE) argue that its inflationary nature makes it worthless as an investment, but is it? Given that most people invested in crypto are in it for quick gains, it then follows that most of them go for deflationary cryptos.
The expectation is usually that, their low supply will lead to an increase in price. But if this bear run has proven anything, it is that value is not just a function of supply. If something is scarce and doesn’t have value, then it is worthless. Most cryptos are scarce, but they don’t fulfil their core function, and that’s usability as currencies. Their value fluctuates so much that it is impractical for them to be adopted by merchants. This by extension makes them worthless in the real world.
Dogecoin (DOGE)’s inflationary aspect makes it stand out. That’s because, it incentivizes people to spend rather than hoard. The result is that Dogecoin (DOGE) has established itself as a stable cryptocurrency that can be used as an everyday currency. This also explains why most of its transactions go towards exchange of value in the real world, as opposed to speculative trading on cryptocurrency exchange, and hence its stability. This stability also means that Dogecoin (DOGE) is likely to continue gaining exponentially in value in the long run. That’s because, as more people continue to demand it for everyday payments, its value will rise, as it has been rising in the past. That’s because, its demand will be rising faster than its rate of inflation.
As cryptocurrencies become more accepted as a mode of payment, stable cryptos like Dogecoin (DOGE) will see their value grow significantly. Already that acceptance is happening. For instance, a short while back, Tinder announced that they would be accepting Dogecoin (DOGE) as a form of payment. This is a platform that has over 1 billion swipes a day, which makes it a big deal. As more platforms begin accepting Dogecoin (DOGE), it won’t be long before its value rises significantly. Besides, it makes for a real competitor to payment platforms like Paypal. That’s because it is decentralized and cannot be censored.
On this basis, Dogecoin (DOGE) comes across as a safe investment in crypto space. Its joke identity may fool investors, but this is a serious futuristic tech, with good prospects for growth.