Don't Buy Dogecoin (DOGE) With $100 Right Now: Here's Why

This year has been wonderful for digital-asset investors. The entire cryptocurrency market has soared more than 40% in value since the start of 2024

With cryptocurrency continuing to gain steam in 2024, it's no surprise that investors might be eyeing up meme coins like Dogecoin (DOGE) as a potential place to put some capital. After all, Dogecoin has risen by more than 53% this year so far. But if you're thinking about buying Dogecoin right now with $100 and holding it through 2024 and beyond, here's some crucial information you need to know.

Dogecoin was created in 2013 as a joke by two software engineers. Despite its humble beginnings, it's now one of the most valuable cryptocurrencies, ranking eighth with a market cap of $19 billion. This helps keep Dogecoin in the spotlight.

Dogecoin runs its own blockchain and operates a proof-of-work consensus system. In contrast, Shiba Inu, another top meme coin, was built on top of the Ethereum network, which makes it compatible with a wide range of decentralized applications (dApps). This gives Shiba Inu an edge in terms of broader stakeholder utility.

According to cryptwerk.com, only 2,500 merchants accept Dogecoin as a payment method. This is quite limited, to say the least.

Apart from its potential use as a medium of exchange, Dogecoin is primarily used for financial speculation. However, its structure leaves much to be desired. While Bitcoin has a fixed-supply cap of 21 million, an astonishing 10,000 new Dogecoin tokens are generated every minute with no maximum supply. This makes it difficult for the price to rise substantially unless demand were to skyrocket for some reason.

It's hard to envision Dogecoin's utility increasing significantly in the coming years. According to Electric Capital, as of July, there were only 21 full-time developers working on this crypto. This places Dogecoin at number 81 on the list in terms of developer activity, which bodes poorly for long-term progress.

As of this writing, Dogecoin trades 80% below its peak price, which was set during the meme-stock mania of the spring of 2021. I don't see any reason to believe that this all-time high will be surpassed. Dogecoin simply lacks any valuable catalysts besides the occasional hype cycle, which are impossible to predict.

Speculators may still choose to gamble on this token in the hopes that it will飆漲 quickly, but I personally believe that this would be a poor use of your hard-earned savings. Over the next five to 10 years, there's a higher chance that Dogecoin's price will go to zero than that it will generate a decent return.

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