{"id":152,"date":"2021-08-24T18:51:50","date_gmt":"2021-08-25T01:51:50","guid":{"rendered":"https:\/\/theplandanhollings.com\/?p=152"},"modified":"2021-10-07T14:14:01","modified_gmt":"2021-10-07T21:14:01","slug":"meme-coins-vs-real-coins-should-you-invest-in-doge","status":"publish","type":"post","link":"https:\/\/theplandanhollings.com\/cryptocurrency\/meme-coins-vs-real-coins-should-you-invest-in-doge\/","title":{"rendered":"Meme Coins vs. Real Coins. Should You Invest in Doge?"},"content":{"rendered":"\n

Glauber Contessoto bought a quarter-million dollars<\/a> worth of $DOGE in February of 2021. Two months later, he was a cryptocurrency millionaire. The problem? That probably won\u2019t happen to you.<\/p>\n\n\n\n

It\u2019s exciting to hear about people getting rich off of Dogecoin and other meme-inspired coins \u2014 and the currency itself isn\u2019t a terrible method of payment. But anyone investing in $DOGE for the long haul might be in for a rude awakening, one that could cost them thousands.<\/p>\n\n\n\n

By the end of this 6-minute guide, you\u2019ll know exactly what the differences are between $DOGE and more traditional cryptocurrencies and why you should invest in one over the other. Let\u2019s go!<\/p>\n\n\n\n

What is cryptocurrency<\/strong><\/h2>\n\n\n\n

Despite all the buzz about cryptocurrency in the public zeitgeist, many people are still a little confused about what it actually is \u2014 that\u2019s completely understandable. Simply put, a cryptocurrency is a form of digital money. <\/p>\n\n\n\n

Instead of being backed and operated by a central government or bank, cryptocurrency is decentralized. That means every transaction made with a given coin is recorded on a public database (or ledger) that is simultaneously updated on a global network of computers. We call that ledger technology \u201cthe blockchain\u201d.<\/p>\n\n\n\n

Recently, crypto has become popular as an investment vehicle \u2014 you can buy, sell, and trade cryptocurrencies like Bitcoin and Ethereum (even Dogecoin) the same way you would trade stocks or Forex.<\/p>\n\n\n\n

What are meme coins vs. real coins?<\/strong><\/h2>\n\n\n\n

Firstly, what is Dogecoin?<\/strong><\/h3>\n\n\n\n

Dogecoin is a cryptocurrency first launched in 2013 to introduce people to blockchain technology and parody the other Bitcoin clones of the time. The \u2018Doge\u2019 mascot is a Shiba Inu dog that was a popular meme in the early days of the Internet.<\/p>\n\n\n\n

The \u2018internet\u2019s favourite coin\u2019 has been used to raise money for charitable causes, send the Jamaican bobsled team to the Olympics in 2014, and more. However, outside of Internet meme culture and fundraising, Dogecoin was not designed to solve any real-world problems. Dogecoin, and other meme coins like it, differ from the more traditional cryptocurrencies we\u2019re used to in a few significant ways:<\/p>\n\n\n\n

Valuation<\/strong><\/h3>\n\n\n\n

Dogecoin doesn\u2019t explicitly solve real-world problems, so market dynamics, speculation, and public perception are almost entirely responsible for its price. In other words, the coin is worth whatever you\u2019re willing to pay for it. In contrast, traditional cryptocurrencies solve specific problems or have real-world applications \u2014 Bitcoin is a store of value like gold, Ethereum can execute smart contracts, etc. <\/p>\n\n\n\n

As blockchain networks improve and new applications arise, the price of their native cryptos may rise. Dogecoin may rise or fall based on what Elon Musk is tweeting on a given day.<\/p>\n\n\n\n

Supply<\/strong><\/h3>\n\n\n\n

Bitcoin is primarily referred to as digital gold because of its limited supply. There will only ever be 21 million Bitcoins in existence \u2014 a feature designed to limit inflation. In contrast, there is no limit to the number of Dogecoins that can be minted \u2014 10,000 new ones<\/a> are created every minute.<\/p>\n\n\n\n

Security<\/strong><\/h3>\n\n\n\n

Compromising a blockchain network is virtually impossible. The level of computing power you would need is unheard of \u2014 that being said, the more nodes (computers running the blockchain) there are, the safer the network. Our favourite meme coin has just over 1,000<\/a> nodes, whereas Bitcoin has close to 8,000 worldwide<\/a>.<\/p>\n\n\n\n

The Pros and Cons of Investing in Dogecoin<\/strong><\/h2>\n\n\n\n

Although it wasn\u2019t designed to compete with the likes of Bitcoin and Ethereum, there are a few reasons you might want to buy Dogecoin (and some other reasons you might not):<\/p>\n\n\n\n

Dogecoin advantages<\/strong><\/h3>\n\n\n\n