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What is the point of Dogecoin?

By gmoney777 | Dog Money Daily | 29 Nov 2022


Why Crypto Is Necessary

To understand the point of dogecoin, we have to first understand the purpose of crypto in general. Crypto was created as a tool to fix the evils that control fiat money. What are these evils? The actions central banks can take to manipulate a currency's value. Look at covid. Central banks used the fear of not having enough liquidity to print vast amounts of money in a short time period in a process called "quantitative easing" which is banker jargon for "printing money". This devalued currencies rapidly as more money was chasing the same amount of goods and services, creating inflation. For people with most of their net worth tied into assets, this is a neutral phenomenon, as the value of money goes down but the value of assets goes up, keeping the total value constant or increasing. The people it hurts are the lower income and lower net worth individuals without as many assets as the value of the fiat money they do have rapidly decreases. Now, central banks have turned off the money printers and some have started "quantitative tightening" which is banker jargon for "destroying money". To counter inflation, the only option is to destroy the money for the system, leading to less money chasing the same amount of goods and services. While it may stop runaway inflation, prices will not come down to the initial values. Doing so is not the central bank's objective, as this causes "deflation". Central banks deem deflation bad as it makes the value of stored and uninvested and unspent cash increase, causing people to hoard money. For lower net worth individuals, this is a good thing, but for higher net worth individuals and their assets (corporations) that rely on continuously growing volumes of transactions to make money and increase in value, this is bad. Since the central banks serve to extract as much wealth as possible for their stakeholders, the large banks owned largely by rich people, this is a nightmare. So, they absolutely want to prevent this from happening. Clearly, the main issue is the fact that the supply and value of a fiat currency is completely controlled by cental banks (private institutions) and not by the people who rely on it. So what is the solution?

 

What Crypto Offers

The solution is cryptocurrency. Crypto uses set algorithms to increase the supply of currencies at very small fixed rates. For example, Dogecoin has a fixed rate of 10,000 Doge per block, and a new block every 10 minutes. At the current circulating supply of around 130 billion doge, this puts the annual doge supply increase rate at around 4%. But, over time as the total amount of doge increases, the proportion of new doge that is added decreases, meaning the rate that the doge supply rate decreases over time. In contrast, over the last two years the amount of dollars in existence increased by more than 40%. While the current supply is set to decrease slightly this next year, the decision is entirely up to the privately controlled central bank, the federal reserve. Meanwhile, the supply rate increase of dogecoin is set by the network algorithms and changes requires a majority of the network to update their nodes and agree on them. If there is a significant disagreement, the chain may be forked, allowing those that agree with a set of rules to use the network they would like. Therefore, dogecoin is more secure in terms of long-term predictability as well as putting decision-making into the control of the network and stakeholders as opposed to the private interests of a few ultra-wealthy individuals and massive stakeholding corporations.

 

What is then the purpose of dogecoin? The purpose is to take the power and control over money from central bankers and give it to the people. It is the people's crypto. And last, but certainly not least, there is the meme factor. Nobody makes memes about crypto except for dogecoin. It is the people's currency, both in terms of technical functionality, meme value, and overall joy. Therefore, the purpose of dogecoin is to prevent the theft of our money from the central banks and to return dividends in the form of happyness.

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gmoney777
gmoney777

I put it all in dog money


Dog Money Daily
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