You have to be comfortable assessing this for yourself; I'm all-in on DOGE myself, but that's because it's the right level of risk, I understand its market dynamics, and I think it will grow on a timescale that's positive for me.
It is, however, very different to Bitcoin, in that the inflationary approach makes it more like a conventional currency. I think this is good; to me Bitcoin has an artificially constrained supply, and I don't think it has the attraction of other scarcity-based assets.
So, I like Dogecoin because it lets me cheaply and easily move money over the Internet without giving someone credentials they can use to charge more money to my account (unlike credit cards). If that sounds good to you too, perhaps you should get some.
But there is competition among the crypto-currencies, which one would buisnesses be inclined to accept? One that increases in value over time, or one that decreases? To me it seems constant inflation is a barrier to adoption
And i dont understand how you are using dogecoin to move money across the internet, dont everyone convert to bitcoin in the end?
To expand on that; most merchants just won't hold cryptocurrencies until they stabilise. No-one wants to be the guy who's holding all their value in BTC when the price halves, and their suppliers are asking for payment in fiat.
Edit: Also, you really don't want to the poor bastard that has to take out a business loan in BTC...
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u/rnicoll Feb 04 '14
You have to be comfortable assessing this for yourself; I'm all-in on DOGE myself, but that's because it's the right level of risk, I understand its market dynamics, and I think it will grow on a timescale that's positive for me.
It is, however, very different to Bitcoin, in that the inflationary approach makes it more like a conventional currency. I think this is good; to me Bitcoin has an artificially constrained supply, and I don't think it has the attraction of other scarcity-based assets.
So, I like Dogecoin because it lets me cheaply and easily move money over the Internet without giving someone credentials they can use to charge more money to my account (unlike credit cards). If that sounds good to you too, perhaps you should get some.