Opinion: June 19, 2021. If You Are an Investor, Avoid Dogecoin

in LeoFinancelast month (edited)

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Dogecoin (DOGE) is a cryptocurrency based on blockchain technology. It is decentralized and it is inflationary. DOGE is created following proof-of-work algorithms, like bitcoin or ethereum.

It was created in 2013, to make fun of bitcoin. The main difference with bitcoin it is that it is inflationary. There is no limit to how many DOGE's can be created, there fore it is not a good store of value.

DOGE was used to tip online users for simple tasks, since it was so cheap. There used to be faucets where people used to get them for watching online content or playing as game.

In 2021 DOGE became popular due to the posts of Elon Musk. This makes the cryptoasset's price non reliable because it does not have a reliable source of value. Since so many of them are produced, it is very likely that once Elon Musk changes his mind, the price will fall due to its inflationary nature.

This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.

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Being a Proof of work and inflationary blockchain, in my opinion it could have a bad future.

Agreed. In addition to the fact that its value was dependent on the words of Musk.

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