What Is A Dogecoin Worth?

One Doge = One Doge. At least that's what many in the Dogecoin community say and which seeks to make humorous Dogecoin's mix of steady inflation and high price volatility.

In a cryptocurrency-world dominated still largely by Bitcoin, Dogecoin stands out remarkably among the 'non-Bitcoins', also known as altcoins, for several reasons:

1. It has some high-profile persons who remark on and follow it, in particular the self-anointed "former CEO of Dogecoin" Elon Musk who appears to use it as a way to mock Bitcoin and cryptocurrencies in general.

2. It is one of the oldest cryptocurrencies out there, having been released in December 2013.

3. Its price is particularly unusual as one Dogecoin is, and generally has been, worth so little as to allow even a retail user to accumulate a large seeming-fortune (at least in Dogecoin terms). A Dogecoin unit has hovered recently near its all-time highs of between 1 and 2 cents but for much of its history has been worth just a fraction of a cent, for years even staying consistently as low as $0.001 to $0.002 per unit. This has also meant it has seen extraordinary price volatility even as its nominal price still seems "low" - if one entered Dogecoin at $0.001 and sold around $0.01 that is an over 100x return rate.

4. It neither has a fixed max supply nor an inflation rate controlled by either the market nor a central issuing node/organization. Rather, Dogecoin began with an initial max supply of 100 billion Dogecoins that was reached in 2015 whereupon it began a fixed inflation rate of 5.25 billion Dogecoins per year, creating a proportionally decreasing inflation rate as time goes on. Currently there are around 128 billion Dogecoins, meaning an annualized inflation rate of a bit above 4%.

5. Much of the intention behind its creation was lighthearted and still is. When Dogecoin originated it essentially took the famous "Doge" Internet meme of a Shiba Inu dog and immortalized it in the form of the then-budding cryptocurrency world, creating a plethora of jokes and humor that projected a brighter tone as compared with most cryptocurrencies that stay rooted in a generally serious public image.

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Disclosure: Long Dogecoin. 

Disclaimer: These are only my opinions and do not constitute investment advice.

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