Dogecoin Price Prediction: Will Dogecoin Ever Reach $10?

Dogecoin is a meme-cryptocurrency created as a joke by software engineers Billy Markus and Jackson Palmer. It is an open-source peer-to-peer cryptocurrency, that initially was hard forked of a Litekoin. The founders were just trying to make fun of the huge token price speculations and the big cryptocurrencies like Bitcoin “threatening” to take over the world at the moment, giving birth to the first-ever meme-token and dog-coin. It features the Shiba Inu breed dog from the viral meme. 

The project was launched on December 6, 2013, and gathered a large community around it in a short time. After appearing on Reddit, the token became extremely popular. In just 2 weeks it got over 19000 followers and its price surged 300%. Despite its humorous origin, the token can be used to transfer value just like any other cryptocurrency. 

Unlike most other projects that are trying to bring more utility to the project, Dogecoin was not intended to have any. But over time the fans found and developed new use cases for the token. It became the tipping currency for the writers on Reddit and became a currency for charity. In 2014 the community transferred over $170000 worth of Doge to more than a dozen charitable cases, including one that supplied dog services for blind kids. 

The Dogecoin network operates on the Proof-of-Work consensus mechanism, with the users able to mint new tokens and get rewarded for it. The mining code of DOGE was copied from the other project named LuckyCoin, which is a fork of Litecoin, that itself is forked from Bitcoin. The mining rewards on the Dogecoin network are randomized, meaning the user can get anything from zero to potentially millions of tokens for adding a new block. This randomness was implemented to prevent taking Dogecoin seriously and mining it for a long time. The founders assumed that such an uncertain mechanism will annoy the users. 

After a little less than a year from the launch though the project appeared much more livable than expected and the founder decided to change the mining schedule to a fixed in March 2014. From that time each block contained 10,000 DOGE, meaning that around 5,2 billion tokens are minted yearly. The difficulty adjustment happens on the Dogecoin network each block. 

In 2014 the creator of Litecoin proposed to merge-mint Litecoin and Dogecoin, meaning that miners would mine both Dogecoin and Litecoin simultaneously, which boosts the network security of Dogecoin. When the proposal was accepted it caused faster block production. It produces blocks 10 times faster than Bitcoin, which means that transactions on Doge are faster than on Bitcoin. 

The issue with the project is its infrequent development. Other than the founders, the team consists of volunteers, that doesn’t update the network so often. Since the launch, it just released a few major code updates, the last ones are in February 2021 and in January 2019. Another part that is suspicious about the project is that over 40% of the assets are held in just 2 wallets with one of them having 28% of the tokens. 

The price of Doge got also affected a lot by the support of Elon Mask, that from the long back informs about his intention to take DOGE to the moon. He even proclaimed himself a Dogefather. 

DOGE token has an unlimited supply and its price isn’t supported by scarcity and relies on buyers constantly buying new tokens that enter the circulation to maintain their value. Initially, there was a fixed supply of 100 billion tokens, but later the limit was removed. The inflation rate also reduces over time. In 2019 it was 4%, and by 2027 it will reach 3% and then drop to 2% by 2035.