Doge got a decent pump in the last few weeks and nobody knows what was the reason. This made a few people think if they should be investing in Doge or not. Some of my friends even decided to invest a little and let it sleep in the wallet. But I personally consider Doge as gambling than an investment.
One of the biggest advantages that Doge has is that it is being pumped by Elon musk. Do you think Doge will be accepted as a currency to purchase Tesla? If you think there is a possibility then you should go for it. But it is most unlikely that people who talk a lot about Doge are mostly doing the pump and the dumped game. Not only now but it has happened in the past as well.
One fine day Elon will talk something about Doge or BTC for that matter and it will start pumping. Small fish will get caught in this trap and lose some money. People get into it by investing a small amount of money thinking that it is not going to be a big deal even if they lose it, but at the end of the day on a large scale that will be huge money to feed some large whale. That's how gambling works. Not just doge but it happens with many small tokens.
People who usually go to the crypto market with a small value of money that they are even willing to lose are the people who are keeping this market alive, they don't care if they lose that small money but in the big picture, thousands of small losers make a big investor grab a full bag of profit.
Let's get straight to the point now. I would like to highlight some of the points that I gave me the perspective that Doge investment is a risk.
- Doge has an unlimited supply. Other than being a cryptocurrency for cheap transactions, there is no better use case for Doge.
- Whoever has the power to print Doge can print how much ever Doge they want and shill it out in the market.
- Many authentic places where cryptocurrency is accepted do not accept Doge as the payment option because there is still a debate if it is really a digital currency.
- Not just me but many crypto experts in the industry think that Doge is not an investment but it is gambling.
- Today even though it is the NFT era, we are still looking for good dapps to make sure the cryptocurrency is a good investment. In this case, Doge has no dapps or any application built on it. People might argue saying that Bitcoin doesn't have a dapp as well. But at least we know that Bitcoin has a finite supply.
- As Doge is a meme coin, there is no possibility for it to be accepted as a proper reputational coin in the future. People might still see that only as a non-serious coin all the time.
- The market fluctuations are totally unpredictable. Though it is good for traders, it also sometimes evades the rules of trading and acts as a pure gambling coin.
- Nearly 50 percent of Doge is being held by almost 12 addresses which keep the coin centralized to a group of people.
These are some of the facts that come to my mind when I think about investing in Doge. Then later I think it will be a risky investment. I might get my bags filled with Doge a little bit in the future when it goes back to the old price but I wouldn't be investing lots of money into it. Sometimes a joke can also be highly valued by the traders and manipulators. So it is good to have a small quantity at least in the portfolio which we afford to even lose.
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