The recent hike in value and hype over doge coin by the mainstream social media will convince the naïve investor that Doge is a good coin. But all that glitters is not gold.
What do I mean by this ?Let look at the history of doge coin.
Doge coin was created as a fun to poke Bitcoin. Doge coin was created as a fun to poke Bitcoin. It was not created with a need in mind by developers. Infact, the team has no purpose or goal but purely fun.
The absence of lifetime cap on the number of doge coins that can be created makes it a very risky investment. By absence of lifetime cap we mean that every day new doge coins are created or produced.
This daily production of the coin will drive down the value because there is no incentive to hold it.
How secure a cryptocurrency is also determine if you want to invest in it or not.And doge coin just do not have robust security as compared to its counterparts-bitcoin and ethereum. You wouldn’t want to invest in a crytocurrency whose block chain can easily be hacked.
Until,the above concerns are taken into consideration by the developers of doge coin, it is advisable to be wary of investing into doge coin for a long-term purpose. Ask yourself why Elon musk did not make doge coin a payment method for his Tesla despite promoting it in social media.
References
What is doge coin