Celebrities are loving Dogecoin. They might not have agreed on much, but at the moment, celebs who couldn’t even see eye to eye, are unanimously supporting Dogecoin.
But veteran crypto investor Crypto Senseilabels this as a mere passing fad, calling it a “cool kid’s shiny new toy”. We sat down for a candid chat with Crypto Senseion why he believes that a billionaire like Elon Musk, who is an ardent Dogecoin supporter at present, will not be one for too long.
It started out as a joke. Dogecoin was supposed to be a meme to clown at Bitcoin. Created in 2013, it was all just lighthearted comedy. Today, it stands shoulder-to-shoulder with the same Bitcoin it once ridiculed. This can be majorly attributed to Elon Musk calling it his favorite cryptocurrency. Crypto Senseilists a few reasons why it could never continue being his favorite.
To begin with, unlike most major cryptocurrency projects, Dogecoin has no actual community or team. This means, there isn’t anybody that can come to your rescue if need be. If in some emergency situation, you ever need a quick solution from the team of Dogecoin, you might end up waiting for a few months.
“Its security is as big a joke as the meme itself”, says Crypto Sensei. Dogecoin is plagued with problems – from issues related to wallet hacking to negligible computing power. No cryptocurrency can go on for much longer with issues as serious as these, and in the course of time, such projects usually suffer staggering losses before being forced to shut down. Crypto Senseipoints out that, such issues are usually something expert investors like Elon Musk are already well aware of. Which makes Dogecoin and its plethora of problems a ticking timebomb that could go off in the face of any novice investor who wasn’t smart enough to run away in time.
While Dogecoin is bogged down by its many problems, other crypto projects are making quick strides and quickly catching up. With plenty of competition threatening to take over the market, Dogecoin stands no chance of recovery – it will go down sooner and later. Projects with better, more sophisticated technology and highly qualified experts will trump the project, observes Crypto Sensei.
Lastly, Bitcoin has a cap on the number of Bitcoins that can be mined – 21 million, to be exact. That supply limit makes it anti-inflationary. Dogecoin, on the other hand, has no such cap, making it inflationary. Inflation is something nobody wants and that is one of the reasons why Bitcoin was created in the first place. Take that away and Dogecoin isn’t really helping with the economy as much.
While Dogecoin enjoyed unprecedented levels of love and adulation with the help of unexpected celebrity endorsements, Crypto Senseiis certain that there is only so much that good marketing and advertising can do. If the product doesn’t have a quality offering, there is no real possibility that it could ever continue to thrive. Once its many flaws become obvious to its chief investor Elon Musk, Crypto Senseisays that there is little chance he would voluntarily choose to continue backing it.