The Joke cryptocurrency has risen more than 26 000% in the last six months, driven by everyday investors. Many investors are surprised that cryptocurrency started as a joke and lacked many of the features. It found in other major cryptocurrencies has risen to such a high level. It comes as a surprise to many, as Dogecoin does not limit the number of coins that can be mined.
Dogecoin’s recent popularity has led many investors to call for the limits to be reintroduced, but will this happen? Dogecoin could limit it, but if it did, it would cause Doge deflation, leading to increased transfer costs, similar to Bitcoin. Deflationary cryptocurrencies offer a little long-term incentive for blockchain miners.
Blockchain networks will be vulnerable to 51% of attack points if miners abandon cryptocurrency networks due to a lack of profitability. Many cryptocurrencies, including Bitcoin, have strict limits on the number of coins that can be mined at a time.
The theory was that by limiting supply, the coin would become deflationary. The creators of Dogecoin had just wanted to see how far they could take the hype and attention created by Bitcoin. They called it a joke, but when their coin began getting traction in 2014 as an alternative crypto-currency with huge growth potential for investors, it turned out that not everything was so funny anymore.
Dogecoin is what you get when you combine Shiba Inu memes with cryptocurrency. It is a little ridiculous at first glance, sure, but then again, if there’s one thing we’ve learned from Bitcoins’ experience since 2009, it’s that investing in cryptocurrencies can be very profitable!
Dogecoin’s production limit was initially set at 100 billion units, much higher than other major cryptocurrencies. To combat wallet loss and other ways to destroy Dogecoin, founder Jackson Palmer announced in February 2014 that he would lift the limit, allowing more than 100 billion coins to be minted. In this post, we will discuss – will dogecoin ever be capped.
Before we know if Dogecoin will have a limit at some point, we must look at its datasheet.
|Circulating Supply||129,881,831,420 DOGE|
|Trading Volume||$ 2,141,702,645.0000|
|All-time high||$0.7376 May 08, 2021|
|All-time low||$0.00008547 May 07, 2015|
Will Dogecoin be limited?
Dogecoin developers are open to strict limits, but sponsors must find natural ways to ensure the network’s security.
Dogecoin’s goal is not to replicate Bitcoin as a store of value, but Doge’s primary goal is to become a currency.
One can argue that Bitcoin has a limited number of coins available and that the network has never been attacked 51% of the time.
Yes, but in 9-10 years, this will no longer be the case. Also, when the supply cap of 21 million bitcoins is reached, the bitcoin network will become very vulnerable.
Dogecoin has an annual supply cap of 5 billion bitcoins.
As a result, inflation is not only predictable but decreases day by day. It eventually reaches 0%.
And we know you want a stopper for Doge as a cap would effectively create a dummy shortage and increase the cryptocurrency market value, But Dogecoin is not designed to be the next Bitcoin.
Moreover, Dogecoin is a significantly better cryptocurrency than DOT. Remember that we are comparing DOT coins, not the Polkadot network.
DOT also does not have a fixed inflation rate; it typically ranges from 8% to 10%.
Of Dogecoin, Bitcoin, and Ether, Dogecoin has the lowest transaction fees, while Bitcoin and Ether have excessively high transfer rates.
For example, at the time of writing, Ether has a transaction fee of $8, Bitcoin has a transfer fee of $12, and Dogecoin has a transfer fee of $0.80.
Given the inflation of the currency, Dogecoin’s meager fees are the only viable option. Therefore, once Doge introduces a cap, it will be another useless currency.
Bitcoins and ethers have never been used as transaction currencies on the Internet due to their high fees.
In total, 21 Million bitcoins shall be available. It is known that 20% of bitcoins are lost through misplaced cell phones and computers.
How many bitcoins will we lose in the next 20-30 years? If we lose 40-50% of our cryptocurrency, how can it become a common trading currency?
Dogecoin always recovers lost coins because there is no limit. Therefore, Doge will not have a liquidity problem.
Has Dogecoin ever been capped?
We possess all the information necessary to decipher the riddle; Will Dogecoin Ever Be Capped. Many cryptocurrencies, including the most famous Bitcoin, have strict limits on the number of coins that can be mined.
The idea is that a limited supply will drive down the exchange rate of cryptocurrencies.
Although Dogecoin started as a joke to satirize hundreds of altcoins, its creators initially limited the cryptocurrency.
Initially, Dogecoin’s supply limit was 100 billion coins, which was already far more than allowed for other major cryptocurrencies.
In February 2014, Dogecoin founder Jackson Palmer announced that he would remove the limit and create more than 100 billion coins to avoid wallet loss and various other ways in which Dogecoin could be compromised.
However, the goal remains to have approximately 100 billion coins in circulation at any given time. We hope this article has clarified to you “Will Dogecoin Ever Be Capped?”
I am Lavinia by name and a financial expert with having a degree in finance from the University of Chicago. In my blog, I help people to educate by making wise choices regarding personal investment, basic banking, credit and debit card, business education, real estate, insurance, expenditures, etc.