Author Topic: Challenges Dogecoin is facing.  (Read 1435 times)

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Offline SuperbeanZ

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Challenges Dogecoin is facing.
« on: January 04, 2014, 12:47:44 AM »
Hey guys! I guess by now everyone is aware that Dogecoin is freefalling on the market. I have given it a little thought and I have a few ideas.
First off, Dogecoin is probably one of the easiest ever coins to mine. According to Wikipedia, as of Jan 1 2014, 18.4% of the total amount of Dogecoins have already been mined. That puts the total amount of Dogecoins currently in circulation somewhere in the region of 19 billion coins. That's a LOT of coins to be floating around for a currency that's less than a month old. That's not necessarily a bad thing but there's a few things to keep in mind here. To have that many coins around in such a small amount of time can be beneficial IF the coins are spread across a large portion of the world and there is a large number of adopters. A lot of people that have been mining Dogecoins from the start with high-end/decent hardware are now in possession of millions of Dogecoins. Now let's say if a 1000 individuals with state of the art hardware have 10 million each ( this is not unrealistic considering that some people have already accumulated close 100 million coins, possibly more) that would mean that more than half of the total number of coins out there is being restricted to a very small community. And that is a very real problem. A lot of people are hanging on to/buying millions of Dogecoins in the hope that they will one day be worth a lot. It is way too early to have such ambitions. For a 'currency' to become viable, it has to have value and it has to be stable. Value is gained by trading the wannabe currency for currencies/items that have already been determined to be valuable. And stability is achieved by having the coin in the hands of as many people as possible. Here are a few ideas/suggestions.

1) In this early phase of the currency, wealthy Shibes should hang on to no more than 1 million Doges (less is better). It is better to have 1 million that is worth 500k USD than to have 100 million worth 10k USD.

2) Wealthy Shibes with a few millions should work out a give/sell ratio for their extra millions. While giving Doges away for free is a good way to achieve stability, selling Doges for real-world money is a good way to increase its value.

3) Shibes with millions should refrain from selling amounts of more than 100k Doges to a single person. It won't make any difference if the millions are simply changing hands. The idea is to allow for the maximum number of people a chance to get their hands on some Doges.

4) For Shibes that have decided to give away say a million to poor Shibes/ newcomers (and hopefully found a way to filter out scammers, although this is not essential), consider donating a substantial amount of Doges to each. I would say anything between 5000 to 10000 depending on how confident you are of being able to block abusers. Giveaways of substantial value brings empowerment and reinforce the sense of belonging to the community. While being tipped 100 Doges is always nice, giving away 10,000 to poor Shibes/newcomers is something else entirely because this is an amount that actually has real dollar value. People receiving such amounts are more likely to stick around and get involved with the community.

Ok that's just off the top of my head. There's a lot more to be said here but I think I covered most of the stuff I wanted to bring to attention (although it is quite possible that I forgot a few points while writing this lol)

Offline goindeep

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Re: Challenges Dogecoin is facing.
« Reply #1 on: January 04, 2014, 01:29:32 AM »
Appreciate the concern but Dogecoin is not "free falling".

If you look at the market 82% of all coins fell.

Coins go up for and down for a few very very simple reasons.

Coin value goes up when X Pays an higher> price for Y.

Coin values goes down when X pays a <lower price for Y.

.... and then it gets very complicated :)

Why does X pay a higher> or <lower price ? Several reasons such as speculation, news, X is just following the market trend, supply V demand, functional issues...

The you also have to consider volume.

The more volume a coin has technically the safer it is. Imagine if Y was only owned by 3 people. Those 3 people hold everything. Well lets say that person 1 holds his stock person 2 sells his stock high> and person 3 sells his stock <low.

What do do you think would be the outcome?

That is right?

No difference at all (forgive the simplicity, we live in simple land for the time being).

And that is because both trades offset each other and because person 1 held and did not make a favoring decision to either trades and follow suite.

If person 1 decides he is going to sell and he decides to play follow the leader with his best friend person 2 and sells high, then in simple land the stock or the value of the stock will magically rise as if riding a purple unicorn to cotton candy mountain.

But then you have to also remember supply v demand.

If person 1, 2 & 3 all sell low but the demand is high it may not matter that much, although it de-values the stock on paper, the demand is so great that the market will naturally raise the price and vice versa.


So then.

After our journey to simple land, what have we learned in context to Dogecoins apparent "freefall"?

We know that Dogecoin is still being traded with good volume comparatively, its distribution is wide so there is no real risk a handful of owners will dump and it will crush it and we know there will be another coin launched ruffling the markets feathers and adding to the "what will happen next" crowd, we call this negative speculation and we know that nothing has really changed technically with the product.

So, Doge will be fine... i say there is no better time to buy :)

Offline Garybirch

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Re: Challenges Dogecoin is facing.
« Reply #2 on: January 04, 2014, 09:39:46 PM »
I haven't worked out the numbers but just off the top of my head I have the feeling that we're holding about steady or down slightly in real terms...  most price comparisons are measured in BitCoins, and what has the price been doing there? Going up the past while, which means if the value of a Doge is going down against the BTC, because BTC is going up at about the same percentage... we're not really changing at all.

Like I said, I haven't run the numbers to see how accurate that is, but the basic idea holds water.

One other comment... it is always a positive when there is a steady and relatively high trading volume for a commodity in the financial markets. I want to see a good solid daily volume of trading of a stock before I'll invest, just because I don't want to get caught holding it with no buyers.
Hope this made sense!

Offline MuChHaPpyDoge

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Re: Challenges Dogecoin is facing.
« Reply #3 on: January 05, 2014, 08:46:41 PM »
 if doge goes to the moon, many hurdles doge must jump

do the developers plan on adding new features in the future
in necessary?
for my dogehouse:



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