Also there is no technical team or a roadmap to consider its qualitative factors as well."īut, if someone is looking to speculate, especially during a rally, as per Rangala, he or she should be clear about what it is: a meme coin without an underlying use case, which has value mainly based on the enthusiasm of traders. He adds, "The fair price for any cryptocurrency can be calculated on the earning expectations or the dividend yields and none of these can be seen structured for this coin right now. This is also given due to the fact that unlike Bitcoin, there is no limit to the number of Dogecoins that will be created," says Modi. "As Dogecoin is purely community driven as of now, it is not likely to receive any institutional adoption at the moment. In absence of an underlying value or a specific use-case, does it make sense for people to invest? How long can this fun coin hold this run? According to industry experts, buying Dogecoin in the hopes of quick profits is not investing, it's speculative trading. Maybe beauty and junk are both in the eye of the beholder, he adds. Dogecoin's underlying protocol exists simply to produce the token, so there's not much to go by," says Rangala. "Bitcoin, for example, is a breakthrough accounting method combined with inflation-proof store of value and payment system that gets rid of middlemen. It was created to have fun with internet memes and later on a community grew around it. However, unlike Bitcoin, Ethereum and other virtual currencies, the coin has no underlying value. Rangala believes, Dogecoin is perfect for that purpose, since the price is in single digits, which makes it look cheap to new traders. Of course, some would argue that speculation is a valid use case.
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