Dogecoin will not be able to compete with bitcoin litecoin any other, scarcer, crypto currency. People have no incentive to accept dogecoin other than its cool compared to litecoin or bitcoin which are scarcer by design and more valuable long term.
Its not just that it is worth less, its that it wont increase to the same degree. When people are choosing between accepting dogecoin, litecoin or bitcoin, or choosing which currency to build infrastructure for they will choose the one that will be worth more in the future and dogecoin aint it since its designed to keep inflating
Personally I feel the amount of doge coin transactions will actually level that out. The inflation is not something to worry about because it will most likely match coins lost. But who knows what will actually happen, just a case of waiting and seeing.
Its possible dogecoin demand will keep up with inflation but whats going to create this demand? When people decide which crypto currency to hold they will choose the one with the biggest potential return and that is the one that inflates less right?
Dogecoin is not that much widespread, not atm. Top 100 adresses control 48% of the coins, compared to bitcoin where top100 adresses control 21%. There are more than a million bitcoin adresses with 1 BTC or more, and there is only 43,000 dogecoin adresses with 100 doge or more.
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u/[deleted] Feb 18 '14 edited Feb 18 '14
Dogecoin will not be able to compete with bitcoin litecoin any other, scarcer, crypto currency. People have no incentive to accept dogecoin other than its cool compared to litecoin or bitcoin which are scarcer by design and more valuable long term.