Author Topic: Maintenance cost of Doge is an indicator for possible future values of Doge  (Read 760 times)

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Offline BeAfraid

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In an article on CryptoSource: They discuss how Doge currently has the highest maintenance costs of any coin, making it one of the worst investments in cryptocurrency.

Of course, as the comments have pointed out, this analysis is only part of the story with maintenance costs, as Bitcoin, too haas HUGE maintenance costs, yet it is the most valuable cryptocurrency, currently.

Due to Doge's volume, this cost isn't an issue so much currently, and due to the rapid halving(s) of the coin payout, the Maintenance costs of Doge will drop substantially in the future.

But this does not mean that we should completely ignore these costs, as we need to build a broader community and usage for the Coin in order to support these costs.

And we have the danger of market manipulators, who control significant amounts of the currency.

If a group of these manipulators suddenly decided to divest themselves of Doge, this could create tremendous stress on the value of the coin, resulting in a plummet in price (of course, that plummet in price could then see people snatching up bargain prices coins, which could STILL in a few year's time be worth something).

But this would be tremendously myopic (short-sighted) of these investors, who would be vastly better off for Doge to reach a price of between 1¢ and 50¢ (or, Dare I say $1!!!). If Doge reached 10¢, then many of these holders of 1Million, or more, Coins would see themselves become very, very wealthy over a coin that still possessed high maintenance costs, but which would, by that point (≈10¢/Doge), see a rather robust marketplace and economy being built around the coin. Such an economy would replace the trading responsibility of providing the maintenance costs, and we would see Doge grow to a very substantial value (roughly 50¢ - $1). Such a price is analogous to the mean of most global currencies (which typically are between 10¢ - $2).

So... Anyone have any thoughts about this?


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