It’s important to grasp the concept of supply cap, as understanding it will aid you in for-sighting whether the crypto currency will hold its value in future or not. The basics shall be clear before you decide to invest in this venture. For example; having only 21 million coins proves to be an identifying mark for Bitcoin. There will be no coins, after this whole amount is mined. This characterizes Bitcoin to be a “rare currency”.
However there is a wide variety of crypto currency around the globe which differs from each other in one or another way. Some of these currencies do not exhibit the supply cap character, i.e. Dogecoin. Question here arises that, are there any chances of Dogecoin to be ever capped in future?
The guide entails the answer for this question.
Introduction: What is Dogecoin?
Dogecoin is somewhat an alternative-coin for Bitcoin and is characterized for providing the user best of following properties:
- Privacy (security)
- Offers decentralization
- Secure environment.
It forbids the intervention of any third party during the course of transactions. It in other words is a peer to peer open source crypto currency.
Dogecoin has been founded back in December, 2013 and exhibits Shiba Inu Dog as the representing logo. Originally it was launched as a silly gag however; it has a strong interconnected blockchain tech that has been derived from Litecoin.
Introduction: What is the Market Cap in Crypto?
The whole value of a cryptocurrency is represented by its market cap. The market capitalization of a company is determined on the stock market by multiplying share price by shares outstanding. The cost of the cryptocurrency is multiplied by the quantity of coins currently in circulation to determine the cryptocurrency market capitalization.
Very formulae can be used for determining the capitalization value of Bitcoin as well. Multiplying the number of coins in present with the price of Bitcoin will produce the result. Capitalization varies with the variation of its price in stock market.
Does Dogecoin exhibit any market cap?
Dogecoin unlike other crypto currencies i.e. Bitcoin does not consist of any supply cap, so calculating its market cap can be quite confusing. Having no supply can have some serious consequences such as the downfall in its price.
If explained in simpler words, the number of people getting the incentive to mine Dogecoins increase proportionally with the price of Doge. These mined coins can be then transferred to the Ledger Wallet. According to research conducted by Money Mong, it is the best wallet of Dogecoin.
With the increase in number of people coming out to sell their coins the value of Dogecoin will face sever downfall in market. The crypto exchange will be the platform for investors to purchase coins.
The experts have contradictory views on this subject; some of them believe that this setup makes Dogecoin the pump and dump scheme. While some confide that it is beneficial for broadening out horizons your portfolio.
Has Dogecoin ever capped in past?
Dogecoin has been retaining its feature of having no supply cap from its existence up till now. Shina Ibu Dog has been featured as the logo of Dogecoin, so it sparked some popularity at that time. However no one expected that its craze will have a consistent boost up over the years.
The fame game started back in 2017; this reputation boosted its valuation up to $1 billion. The investors thought of this sudden sky-rocket hype as an indication of insubstantiality and unreasonable energy in the market.
The enthusiasm soon died as it lacked any special feature of its own and was simple an emulation of Litecoin, and duplicate of Bitcoin. In addition to it, there was no update in software and other aspects by the developers.
The tables turned again in 2021 when it regained its position due to special shoutouts from world famous celebs such as Elon Musk, Snoop Dog, Mark Cuban and numerous others. It again ranked in amongst the top 10 crypto currencies of world
Are there any chances of Dogecoin being capped in Future?
The Dogecoin will ever be capped or not, anything being said on it will remain ambiguous. The software of almost all cryptocurrencies is updated on a regular basis to keep it updated, safe, and useful. The protocols of any crypto crurrency can be altered as per the standards and stakeholders, so it would be considered quite normal if Dogecoin also goes through this process.
Theoratically speaking the developers may impose cap on the existing or maybe on the production of new coins. However there is no rock-hard discussion on topic. Experts predict that there might be no supply cap ever on Dogecoin.
The amount of Dogecoin left:
As previously indicated, the supply of Dogecoin is infinite. As much Dogecoin as you desire can be mined. Additionally, it is very similar to other national authorized currencies like the INR, USD, and PKR etc.
Dogecoins can be created indefinitely. However, there is a significant distinction between DOGE coins and fiat money. Anyone can mine Dogecoins however; money can only be printed by central banks.
Why Dogecoins have not been capped: Reason
Numerous reasons have been cited on web for Dogecoins not being capped. One of them that seemed relevantly acceptable was the aim to produce money with infinite supple to encourage one on spending it.
It has been already mentioned before that the startup was initiated jokingly thus looking for logical reasons behind the basic protocols.
Summing up: There is no history of Dogecoins ever being capped and no concrete discussion or evidence that proves there are any chances of it happening. Experts assume that, this crypto currency will never be capped. However we do hope that it will further be upgraded for better in future.
Stay tuned to be updated about all the recent events.