Why Doge investment is a risk?
Doge got a decent pump in the last few weeks and nobody knows what was the reason. This made a few people think if they should be investing in Doge or not. Some of my friends even decided to invest a little and let it sleep in the wallet. But I personally consider Doge as gambling than an investment.
One of the biggest advantages that Doge has is that it is being pumped by Elon musk. Do you think Doge will be accepted as a currency to purchase Tesla? If you think there is a possibility then you should go for it. But it is most unlikely that people who talk a lot about Doge are mostly doing the pump and the dumped game. Not only now but it has happened in the past as well.
One fine day Elon will talk something about Doge or BTC for that matter and it will start pumping. Small fish will get caught in this trap and lose some money. People get into it by investing a small amount of money thinking that it is not going to be a big deal even if they lose it, but at the end of the day on a large scale that will be huge money to feed some large whale. That's how gambling works. Not just doge but it happens with many small tokens.
People who usually go to the crypto market with a small value of money that they are even willing to lose are the people who are keeping this market alive, they don't care if they lose that small money but in the big picture, thousands of small losers make a big investor grab a full bag of profit.
Let's get straight to the point now. I would like to highlight some of the points that I gave me the perspective that Doge investment is a risk.
- Doge has an unlimited supply. Other than being a cryptocurrency for cheap transactions, there is no better use case for Doge.
- Whoever has the power to print Doge can print how much ever Doge they want and shill it out in the market.
- Many authentic places where cryptocurrency is accepted do not accept Doge as the payment option because there is still a debate if it is really a digital currency.
- Not just me but many crypto experts in the industry think that Doge is not an investment but it is gambling.
- Today even though it is the NFT era, we are still looking for good dapps to make sure the cryptocurrency is a good investment. In this case, Doge has no dapps or any application built on it. People might argue saying that Bitcoin doesn't have a dapp as well. But at least we know that Bitcoin has a finite supply.
- As Doge is a meme coin, there is no possibility for it to be accepted as a proper reputational coin in the future. People might still see that only as a non-serious coin all the time.
- The market fluctuations are totally unpredictable. Though it is good for traders, it also sometimes evades the rules of trading and acts as a pure gambling coin.
- Nearly 50 percent of Doge is being held by almost 12 addresses which keep the coin centralized to a group of people.
These are some of the facts that come to my mind when I think about investing in Doge. Then later I think it will be a risky investment. I might get my bags filled with Doge a little bit in the future when it goes back to the old price but I wouldn't be investing lots of money into it. Sometimes a joke can also be highly valued by the traders and manipulators. So it is good to have a small quantity at least in the portfolio which we afford to even lose.
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I agree with you
Doge investment is risky and surely a gamble. If some big name tweet about some shit coin, it does not mean that the coin is a super star. These people have nothing to loose by tweeting but a lot of people who would trust them will loose big time. A coin can only shine and stay in the market for long time if it’s creators have a vision and road map which clearly is missing in this case. A coin made out of mockery had gained a lot of publicity.
Of course nobody hates the dog but yea it is a risky investment. If it does drop down low enough, I might just buy a few dollars worth to see if it is pumped again in the future. One of the worst things about what happened to Doge was the entire 4/20 day for Doge and how it didn't get to $1. I guess its a buy the rumor and sell the news event.
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Agree I am in a telegram group with about half million
They are manipulating price by pump and dump
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Yeah most of the time it is pump and dump through a mass discord or telegram channel. But this more like a push from the other social media as well.
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If one believes what they see on the Doge Reddit, more and more businesses in the States are accepting Doge.
That said, I agree with you, as an investment it is a gamble. No one should invest in it. On the other hand, as a means of commerce, it could be useful. Just as sending money, I have used it many times. Fees are small and it sends nearly instantly, as opposed to some other cryptos that have both high fees and slow network confirms.
So I think with Doge, we really need to get out of the investment mindset. It is not an investment, it is a terrible investment, but that doesn't mean it's not a great alt coin.
Plus, the memes are fun. Much fun; so wow. (insert photo of shiba dog)
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Yes I have also used it for sending my tokens from one exchange to another because the transaction is cheap. But Hive is far better than that because it is nearly free.
!BEER
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Yes dear you are as right as the bright day. I myself tried to get profit by investing in DogE n I noticed the same facts that u mentioned. People r trying to manipulate the price of DogE by news.
But I ve also noticed that a lot of new GPT/PTC sites have started to use DogE coin as an earning n payment method. Maybe @ GPTFAN can put some light on this.
Yeah many have started using Doge as their payment method. I also noticed that a few exchanges started listing Doge and introducing new trading pairs.
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