Blockchain technology is a decentralized system running a consistent operation that should be scalable as technology advances. Contrary to financial institutions, governments or legal bodies do not influence digital currencies. On this blockchain, cryptocurrencies are digital coins that allow two individuals to make payments virtually. Each currency miner keeps a record of transaction history to minimize the risk of illegal cyber activities.
Since cryptocurrency entered the internet space, there have been significant advancements, such as introducing smart contracts and building more blockchain transaction layers. These layers ensure fast and secured transactions without the involved parties compromising one another.
Amidst the frequently asked questions on cryptocurrencies, the uncertainties of Dogecoin sustainability appear as a concern to many individuals. Using the high rate of movement from bitcoin to dogecoin, we can denote that cryptocurrencies are rapidly evolving. The focus has shifted from the top cryptocurrency, which is bitcoin, into new altcoins. Although developers are launching new currencies into the financial system, they have different scalability capacities.
Factors Responsible for Dogecoin Popularity
Generally, cryptocurrencies prices are highly volatile, leading to unstable prices for an extended period. However, several factors may be responsible for this, but the major push for Dogecoin is the social media influencers. Hence, the bitcoin to dogecoin movement is expected since many people are presented on social media and are easily influenced by experts’ comments and advice. Since Elon Musk shared a meme about Doge on Twitter, some antagonists described it as a joke coin. Despite this seeming challenge, the main shift keeps occurring from bitcoin to dogecoin. Recently, Dogecoin experienced a 20,0000 percent increase than what the market had last year.
Social media being a platform with many celebrities has helped the popularity of Dogecoin by promoting it amidst other cryptocurrencies. Also, Dogecoin users attesting to its high security and scalability allows new investors to see it as a portfolio diversification option. Hence, migrating from bitcoin to dogecoin is not a must since users can have both cryptocurrencies in their wallets. Exchanges like Evonax with a trusted wallet that allow traders to buy and sell without hassle provide a smooth trading experience for individuals. Evonax reported its quality service and applications.
“Our mission is to offer our users anonymity, easy and secure transactions, and make the exchange process effortless for everyone who wants to invest in cryptocurrencies. Evonax started operating in 2016 and has customers from all around the world who enjoy fast and simple transactions and a 24/7 support service.”
On the other hand, traditional investors underestimate Dogecoin and refer to it as a parody currency. Meanwhile, corporate endorsements, tweets, and headlines keep publicizing the intrinsic value of the doge currency. Technology has become more open and flexible to the masses as it appeared as a rigid protocol in the past. Blockchain technology is now available to naive persons, who later sought detailed information on digital coins and may end up becoming Crypto enthusiasts. If online communities keep driving Dogecoin, it proves the currency transparency and openness to contributions from its users. Hence, Doge’s growth in its community base would be a more significant advantage and keep pushing it to the top ladder of cryptocurrency.
Whether you are just getting into a crypto investment or expanding your portfolio, it is vital to watch social media trends closely. Since influencer’s suggestions often move the market, you may want to follow up on them to predict what to expect in the near future. Also, it is crucial to work towards being a significant contributor as well. Often, crypto big investors take actions in favor of their price margin. To become a billionaire through cryptocurrency investment, you need to expand your knowledge, get a mentor and keep learning the blockchain mechanism.
It is impossible to predict the future price of Dogecoin, but the currency would undoubtedly keep growing in popularity and usage among top merchants and traders. Crypto enthusiasts expect a massive replacement of fiat currency with digital coins, but it may not turn out as expected, except these regulated bodies embrace digital finances. Financial institutions are rivals to digital exchanges because their implementation led to a loss of customers, but they have the upper hand in collaboration with the government. More people need to realize it is not a Ponzi scheme to utilize cryptocurrency globally as an investment opportunity fully. Hence, governments need to embrace blockchain technology to enhance transparency in transactions, reduce the rate of illegal activities, and improve productivity among major economic sectors.
I am from Brisbane, Queensland and I hold post of Associate Editor at Cryptocoindaddy.