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Dear Reader,
In This Article,
I Want To Share Some of My Thoughts on One of The Oldest Cryptocurrencies in Circulation.
DOGECOIN - The Currency Inspired From A Famous Internet Meme.
Characteristics of Dogecoin (DOGE):
1. Dogecoin Price Has Remained Quite Stable Across The Last year on an Average Basis.
2. Dogecoin Doesn't Have A Fixed Supply and Thus is Inflationary in Nature. But The Inflation Rate Decreases as Time Passes By.
EXPLANATION WHY INFLATION RATE DECREASES :
(a) Dogecoin Currently Has A Fixed Amount of New Dogecoins Mined and Introduced Into Circulation. There are 10,000 DOGE Mined every block (Which Will Remain Constant).
(b) There are Approximately 5,200,000,000 DOGE that's 5.2 Billion of New Dogecoin introduced in Circulation Every Year.
(c) As of Today When I Wrote This Article There are Around 125,771,742,276 (Source : Coingecko), That's Approximately 125.771 Billion DOGE.
(d) So in The Next Year (2021) There will Be Another 5.2 Billion DOGE added into Circulation, Resulting in The Total Circulating Supply of : 125,771,742,276 + 5,200,000,000 = 130,971,742,276 DOGE which is around 130.971 Billion DOGE.
(e) So The Inflation Rate Will Be : Change/Increase in Circulating Supply divided by Total Supply in Circulation in The Current Year Multiplied By 100. That is :
(5,200,000,000 / 125,771,742,276) * 100 = 4.13447401292164 %
(f) For The Year After Next Year (2022) (Third Year) Another 5.2 Billion DOGE will be Added into Circulation, Resulting in The Total Circulating Supply of : 130,971,742,276 (Circulating Supply of The Year Before) + 5,200,000,000 = 136,171,742,276 That's Around 136.171 Billion DOGE.
(g) Similarly, The Inflation Rate For The Next Year can Be Calculated as :
(5,200,000,000/136,171,742,276) * 100 = 3.818707106985801 %
(h) For The Fourth Year (2023) Another 5.2 Billion DOGE will Be Added into Circulation, Resulting in The Total Circulating Supply of : 136,171,742,276 + 5,200,000,000 = 141,371,742,276, That Around 141.371 Billion DOGE
(i) Similarly, The Inflation Rate For The Next Year After (Fourth Year) can Be Calculated as :
(5,200,000,000/141,371,742,276) * 100 = 3.678245677872486 %
(j) Similarly, For Next Next Couple Years The Inflation Rate Decreases. This means That There is Fixed Amount of New DOGECOINS added into circulation but The Inflation Rate is Decrease.
3. The Steady 5.2 Billion DOGE introduced in Circulation every year is beneficial To many people as it Allows Several People To own DOGECOIN In Terms of Whole Numbers or Rational Numbers. Unlike Bitcoin Which is Deflationary and Each Decimal Places Value Increase With Time as it Has A Fixed Supply.
4. I'm Not A Fan of Inflation, I would Rather opt for Deflationary Currencies, But DOGECOIN price Remains Quite Stable Compared To Other Cryptocurrencies.
(It Also Makes Sense Paying A Miner Fee of 1 DOGE to Process A Transaction if 1 DOGE is Not Extremely Valuable)
5. DOGECOIN has A Block Time of 1 Minute and Requires 6 Confirmations for A Transaction To Become Irreversible.
6. Many Small Scale AltCoins Exchanges Having Trading Pairs consisting of DOGE and Another Altcoin.
7. DOGECOIN Has Become One of The Most Used Coins For Tipping People on Social Media Platforms such as Telegram, Discord, Reddit and So on.
8. Dogecoin Was Used To Raise Funding for Several Events.
DOGECOIN Has Been Receiving A Great Community Response For The Last Couple Years.
As Per The Charts DOGECOIN has Been Maintaing a Good Price.
(SWITCH TO LOGARITHMIC POINT OF VIEW (Log) )
DOGECOIN HAS THE POTENTIAL TO BECOME A CURRENCY SOLELY DEPENDENT ON IT SELF. WHAT I MEAN BY THAT IS GOODS AND SERVICES CAN BE EXCHANGED FOR A FIXED PRICE LIKE FOR EXAMPLE A STYLISH PEN FOR 40 DOGE or AN ERASER FOR 10 DOGE.
THAT MEANS 1 DOGE WILL ALWAYS EQUAL 1 DOGE
(1 DOGE = 1 DOGE)
SIMILAR TO A FIAT BASED SYSTEM BUT WITH NO CENTRAL AUTHORITY. DOGECOIN IS DECENTRALIZED AND A FIXED AMOUNT OF NEW COINS ARE INTRODUCED INTO CIRCULATION OF 5.2 BILLION DOGE A YEAR.
THANKS FOR READING,
STAY HEALTHY, WEALTHY AND HAPPY
