Many analysts’ analysis is that Dogecoin will eventually reach $ 1 in recent years, but in this article on the shetcoiner site, let’s take an economic look at whether Dogecoin can reach $ 100 or $ 1,000, or this is impossible!
Unlike other crypto currencies, Dogecoin does not have a maximum number of coins to maintain network security and performance. So there are $ 5 billion a year in coins for miners each year, and by the end of 2030, that amount will be $ 180 billion in circulation. So if the value of Dogecoin reaches $ 1 per token, the total market value of Dogecoin will be $ 180 billion.
Why is it impossible for Dogecoin to reach $ 100?
This number will not be a large number for a popular crypto currency, but the question is whether it is possible or impossible to reach 100 times this volume of market cap for Dogecoin in terms of economic calculations and in comparison with the GDP (GDP) of countries.
At the time of writing, about 18 million Bitcoins are in circulation, with a market value of $ 900 billion) (currently the total value of the global crypto market is $ 2.04 trillion. Also, the value of the second currency of the crypto market, Ethereum, is about $ 200 billion, and Ethereum does not currently have a maximum number of coins and is produced and supplied by miners to an infinite amount. PoW will change to PoS, that means from proof of work to proof of stock and Staking, and no new Ethereum will be added by the miners to the number of Ethereum cycles)
Over the years, Bitcoin and Ethereum have shown their strengths and weaknesses and become the benchmark for the growth of other crypto currencies in crypto. In this situation, the cost of Bitcoin transactions is constantly increasing, and this transaction fee is so high that it is not useful for daily retail transactions; Ethereum transaction fees are also very high at the moment.
Dogecoin has much lower transaction costs due to its lower price but has attracted a lot of attention, and having 5 billion Dogecoin coins in the hands of miners annually will continue to help keep Fee transactions low. You may be interested to know that at the moment, despite the low transfer fee in Dogecoin, the transfer in Dogecoin network is 10 times faster than Bitcoin.
Therefore, with these descriptions, reaching the $ 180 billion Dogecoin market cap will not be a strange and unattainable, but reaching $ 100 is very impossible and inaccessible. Now we explain to you why it is impossible for Dogecoin to reach $ 100.
The US gross domestic product and China is about $ 21 trillion. Also, if we calculate the GDP of all countries in the world, this figure in 2020, has reached about 87 trillion dollars.
Now let’s imagine that Dogecoin will reach $ 100 with a market cap of $ 1 billion and a market value of $ 180 billion, the total market value of Dogecoin will be more than $ 18 trillion and this market value is more than the GDP of China. It will be equal to the US economic GDP. So this is completely irrational and impossible!
What are the items that will increase the price of Dogecoin?
Many domestic and foreign economic items can affect the Dogecoin Blockchain network and increase its value and price; some of them are mentioned in the list below.
- Increasing the speed of money printing by world governments due to the corona crisis or large financial loans and economic recovery.
- Increasing the attention of people and communities to the role of government inflation in devaluing national currencies.
- Increasing public awareness of the importance of neutralizing government monetary inflation using crypto currencies.
- The corona pandemic spread and as a result more money was printed by central banks and governments.
- Software updates and new forks that are released from the Dogecoin
- Rising prices of market lead to currencies such as Bitcoin.