Since May, many investors have wondered whether Dogecoin (CRYPTO: DOGE) is worth purchasing.
Since its introduction, the coin’s community has exploded. Fandom continues on. Notable billionaires on the list include Mark Cuban and Elon Musk. There are a few things to consider before buying Dogecoin.
Since it operates on its own blockchain and isn’t smart contract compatible, it can only be used for tipping today. However, considering the variety of options (including Shiba Inu), it is unlikely to be worthwhile.
Dogecoin, for example, is one of the best cryptocurrencies for payment and tipping. Dogecoin’s basic technology is better than Bitcoin’s, but not the best.
This is crucial information for anybody contemplating buying Dogecoin as a long-term investment. Speculative Dogecoin has been losing value for months owing to its inability to be used as a payment mechanism. Until Elon Musk made a recent big announcement.
So, Elon Musk said?
Last week, Elon Musk claimed Dogecoin could be used to buy Tesla items. This news caused a 21% increase in Dogecoin pricing in under 11 hours.
Gain expected. New companies accepting coins or new exchanges listing them raise a coin’s worth. That buys how much Dogecoin?
After increasing 20% in only 11 hours, the currency has only lost 1.7% after the announcement.
But not by 20% on Elon Musk’s comments. This shows how speculative Dogecoin is. This demonstrates that Dogecoin needs more corporations to invest in it.
What coins outperform Dogecoin in the price?
Even if Dogecoin is down over 75% from its high, there are better options.
XRP is a cryptocurrency that may be used for payments. XRP has a large development team and is already a top ten cryptocurrency.
Because Dogecoin lacks smart contracts, I think blockchains are the most promising cryptocurrencies today.
If you want to earn a fortune as Dogecoin did in 2021, I’d look for a high-quality blockchain network like Ethereum to invest in.
Elon Musk’s Recent Announcement is a Buy. Motley Fool Canada published it.
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