Where Will Dogecoin Be in the Next 5 Years?

Electronic Money Dogecoin (CRYPTO: DOGE) started as a joke, but many people have made real money from it. This coin skyrocketed in the spring of 2021 and after the 2024 election. Those lucky or smart enough to buy near the bottom and sell at the top of each bullish wave could have pocketed profits ten times over in just a few days. But this high price won't last long. On June 24, Dogecoin was trading 65% lower than its 52-week peak in December. This meme coin has gone through many ups and downs in the past five years, but where will it go from here? Can Dogecoin Bullish Again? Let's start with a bullish analysis. Dogecoin has come a long way from its silly origins. "Doge Army" consists of coin holders and developers who are very passionate about this project, and anyway, it is quite similar to Bitcoin (CRYPTO: BTC). In fact, it is better for some purposes, thanks to fast transactions and low fees. Bitcoin is built to store long-term value, but Dogecoin focuses on speed. Some people argue that Dogecoin could be an efficient alternative to Bitcoin, dollars, and credit cards for handling daily transactions. Thanks to these qualities and the relentless spread of social media, Dogecoin has been accepted by a large number of retailers. If the community can maintain this growth momentum, one day, this could become a widely used payment method. In this scenario, the coin could rise from $0.16 to $1 or more. Dogecoin has previously nearly reached that benchmark, peaking at $0.73 per coin in May 2021 -- and that was just one bullish phase of the meme coin. A more serious move with actual trading volume skyrocketing could push the price of this electronic money much higher. Why Does Dogecoin Only Bark and Not Bite However, on the other hand, Dogecoin is built on a questionable platform. The long-term value of Bitcoin is based on strong supply and demand calculations. There will never be more than 21 million of that coin in circulation, and 94.7% of that supply has already been created. There is not much room for inflation in the Bitcoin system, and increasing demand will drive the price of the coin higher over time. Dogecoin operates under different rules. Quick transaction resolution comes at a cost, using a less secure encryption algorithm. The meme coin also does not have a fixed supply limit like you see in Bitcoin, so the amount of Dogecoin you hold can be inflated significantly. There are currently 149.8 billion Dogecoin available, up from 144.8 billion a year ago and 124.8 billion in June 2020. Dogecoin operates under different rules. The rapid resolution of transactions comes at a cost, using a less secure encryption algorithm. The meme coin also does not have a fixed supply limit like you see in Bitcoin, so the amount of Dogecoin you hold can be significantly inflated. There are currently 149.8 billion Dogecoin available, up from 144.8 billion a year ago and 124.8 billion in June 2020. The inflation rate will slow down over time as Dogecoin adds 5 billion đồng of new money each year. This is by design, as the creators of Dogecoin want people to use it rather than hoard it -- similar to how governments aim for a modest inflation rate for traditional fiat currencies. However, the stable cash flow undermines the long-term value of this coin. The Next 5 Years of Dogecoin History Looks Familiar At first glance, Dogecoin looks like a useful financial tool. But this coin is too volatile to play that role. I believe you could set up Bitcoin to hold your assets for the long term and convert a portion into Dogecoin when needed, just as one might do with a savings account and a checking account in an old-fashioned bank. However, that is unlikely to happen in the near future. Many Dogecoin fans are not interested in other electronic money and the dream is often to catch the next bullish surge. As long as social media posts can control the price fluctuations of Dogecoin, it is hard to take it seriously. Therefore, unless the Dogecoin community makes some fundamental policy changes in the next five years, I'm afraid you'll see many similarly unpredictable price charts. There may be a few major jumps along the way, but the price chart of Dogecoin will tend to decline over time. I want to include Bitcoin in my long-term investment portfolio more. The electronic money was originally built to last long.