Title: Why DOGE is so cheap, What am I missing?? Post by: marine4u on July 04, 2015, 07:24:16 PM I was one of the first miners for Doge coin back in late 2013 while I was working on the Marinecoin wallet, I had 20 MH GPU rigs huge scrypt hash back then and was very hard to mine DOGEs even back then, now the the Doge hashrate is over 1THs with the power of 3000 KNC Titan Asic Scrypt miners requiring 1700 Watt each and yet daily rewards total is merely 2,400 USD. not even close enough to cover electricity costs let alone the cost of manufacturing the rigs even if you had free electricty
You can buy entire days DOGE output for only for 2400 USD on the exchange, if you decide to mine that amount cheapest rig rental is 0.00045 BTC per MH per hour would cost 45 BTC per hour x 24 hours = 1080 BTC cost per day to hire a rigs to mine a days supply of doge coin 240.000 USD, considering that many rigs are not available for hire it is also impossible to mine it if you were the richest man in the World. Litecoin daily reward at 120.000 USD with just about the same hashrate. Litecoin community pretty much doesn't exist, Doge community is by far the strongest and by far the most active same goes for their devs, usage of Dogecoin surpassed LTC and if a site accepts LTC it usually also accepts doge, same goes for exchanges, Doge in China is as big as BTC. if a corporation decided to create a similar market awareness for anything it would cost 100s of millions in USD in just marketing yet entire Doge market cap can not buy a 5 bedroom apartment in NYC. and probably only could afford to get a 1 bedroom apartment in NJ if they really decided to sell their Dogecoins and get one. Someone tell me what I am missing? Marinecoin DEV Title: Re: Why DOGE is so cheap, What am I missing?? Post by: KlondikeBear on July 04, 2015, 08:28:07 PM I was one of the first miners for Doge coin back in late 2013 while I was working on the Marinecoin wallet, I had 20 MH GPU rigs huge scrypt hash back then and was very hard to mine DOGEs even back then, now the the Doge hashrate is over 1THs with the power of 3000 KNC Titan Asic Scrypt miners requiring 1700 Watt each and yet daily rewards total is merely 2,400 USD. not even close enough to cover electricity costs let alone the cost of manufacturing the rigs even if you had free electricty You can buy entire days DOGE output for only for 2400 USD on the exchange, if you decide to mine that amount cheapest rig rental is 0.00045 BTC per MH per hour would cost 45 BTC per hour x 24 hours = 1080 BTC cost per day to hire a rigs to mine a days supply of doge coin 240.000 USD, considering that many rigs are not available for hire it is also impossible to mine it if you were the richest man in the World. Litecoin daily reward at 120.000 USD with just about the same hashrate. Litecoin community pretty much doesn't exist, Doge community is by far the strongest and by far the most active same goes for their devs, usage of Dogecoin surpassed LTC and if a site accepts LTC it usually also accepts doge, same goes for exchanges, Doge in China is as big as BTC. if a corporation decided to create a similar market awareness for anything it would cost 100s of millions in USD in just marketing yet entire Doge market cap can not buy a 5 bedroom apartment in NYC. and probably only could afford to get a 1 bedroom apartment in NJ if they really decided to sell their Dogecoins and get one. Someone tell me what I am missing? Marinecoin DEV Dogecoin is cheap, for sure, but it is relative. To explain it better, there is another coin, I will not name it, just some characteristics: 1) The trade volume of coin used to be higher than Doge's one in 2014. 2) One of developers of this coin is a person on whose code Dogecoin was based. 3) There is an active community of this coin and this coin is not very much less known than DOGE, here on Bitcointalk, at least. 4) There is a good liquidity on Cryptsy. 5) It has much better name. 6) You can buy on Amazon, eBay, Overstock, Barnes&Noble, Groupon etc. with this coin. 7) Total supply is limited and year mining inflation is 5% only, pure PoW. The market cap of this coin is under $200,000. Dogecoin's market cap is $19 mln. The problem is: people don't invest in coins now. They would better buy an appartment in NYC than investing in Dogecoin, or buy a car than investing in above mentioned coin. You may tell them a lot, you may promote, people will not listen, will not buy - for the time being. The boom will come a bit later. We should wait and that is all. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: sdmathis on July 04, 2015, 08:43:12 PM The problem is that you are looking at this as if the cost of producing a product has anything to do with the price of a product. Cost is irrelevant. Supply and demand is king.
Imagine that it costs $100 to produce a hamburger. How many $100 hamburgers do you think that you could sell? Now imagine that you posses ALL the food in the world and Bill Gates is starving to death. I'll bet that that you could sell Bill Gates a $100 hamburger. Even if it only cost you 50 cents to produce. When producing a commodity like oil, gold, silver, etc. ..., production stops or slows down when costs exceed income. Price only rises when the market raises the price. Crypto is the same way. Mining does have an effect on price, but it's a negative effect. Heavy mining tends to drive the price down because it increases the available supply. Then as prices drop, mining slows down and prices have an opportunity to go back up ( only an opportunity because demand must rise for prices to go up ). It's unfortunate that the economics don't allow most people to mine many coins profitably any more, but mining is not dead yet. You just can't do it with coins like Doge any more. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: Melbustus on July 04, 2015, 09:09:45 PM What are you missing? I guess that the alt-coin market is largely irrational to give clone-coins any sort of market-value in the first place. Follow on questions/analyses are meaningless and futile.
Title: Re: Why DOGE is so cheap, What am I missing?? Post by: Zetacoin Express on July 05, 2015, 01:46:52 AM I know exactly what you are missing, I too was as clueless until a few months ago and made similar mistakes. It is the fundamental problem with most users in crypto. Since they are not economists, they fail to grasp the core concepts of inflation and it's long and short term effects. Additionally, these user's are young, very short sighted, impatient, and seek only instant gratification. By only seeing what is in front of them at the given moment, they miss out on vast amounts of potential long term earnings and incur huge short term losses. Perhaps, one or two may get lucky, but it's by pure chance.
I'll tell you why DOGE is 'so cheap' and you will hate the answer... DOGE is designed/guaranteed to lose it's value over time. It's a bad investment so miners just sell it as soon as they can. In fact, DOGE is actually OVERVALUED. Size and strength of the community doesn't change this truth. By contrast, (dare I try to hijack this thread :) ) the 'other' coin I highly admire but do not hold much of (which starts with a 'Z' hehe), offers a better long term investment. The same short sighted people dump it like it was DOGE not realizing the vast differences in it's economics. Anyway... I have a load of DOGE (crap, pun intended!) that I purchased a while ago before I was any wiser. I'm at a huge loss and don't expect to ever make that up. I chose to invest in DOGE instead of 'other coin'. Had my decision been based on facts instead of hype, I would be in a very good place today. Oh! the mistakes we make! Title: Re: Why DOGE is so cheap, What am I missing?? Post by: JobCreator on July 05, 2015, 02:03:22 AM Dude I am sorry but DOGE is not cheap.
Honestly, it should be trading at 0.00000075 LTC. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: bathrobehero on July 05, 2015, 02:05:20 AM I honestly think both LTC and DOGE are way overstaying their welcome as I really can't see any reason whatsoever that would warrant their current price. I'm curious though, why people think otherwise.
Title: Re: Why DOGE is so cheap, What am I missing?? Post by: Zetacoin Express on July 05, 2015, 02:11:16 AM I honestly think both LTC and DOGE are way overstaying their welcome as I really can't see any reason whatsoever that would warrant their current price. I'm curious though, why people think otherwise. LTC and DOGE are very different and if forced to choose one or the other, I would choose LTC without hesitation. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: tokeweed on July 05, 2015, 02:19:34 AM I was one of the first miners for Doge coin back in late 2013 while I was working on the Marinecoin wallet, I had 20 MH GPU rigs huge scrypt hash back then and was very hard to mine DOGEs even back then, now the the Doge hashrate is over 1THs with the power of 3000 KNC Titan Asic Scrypt miners requiring 1700 Watt each and yet daily rewards total is merely 2,400 USD. not even close enough to cover electricity costs let alone the cost of manufacturing the rigs even if you had free electricty You can buy entire days DOGE output for only for 2400 USD on the exchange, if you decide to mine that amount cheapest rig rental is 0.00045 BTC per MH per hour would cost 45 BTC per hour x 24 hours = 1080 BTC cost per day to hire a rigs to mine a days supply of doge coin 240.000 USD, considering that many rigs are not available for hire it is also impossible to mine it if you were the richest man in the World. Litecoin daily reward at 120.000 USD with just about the same hashrate. Litecoin community pretty much doesn't exist, Doge community is by far the strongest and by far the most active same goes for their devs, usage of Dogecoin surpassed LTC and if a site accepts LTC it usually also accepts doge, same goes for exchanges, Doge in China is as big as BTC. if a corporation decided to create a similar market awareness for anything it would cost 100s of millions in USD in just marketing yet entire Doge market cap can not buy a 5 bedroom apartment in NYC. and probably only could afford to get a 1 bedroom apartment in NJ if they really decided to sell their Dogecoins and get one. Someone tell me what I am missing? Marinecoin DEV Too much supply, not much demand. Community following can only go too far. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: tokeweed on July 05, 2015, 02:21:27 AM I honestly think both LTC and DOGE are way overstaying their welcome as I really can't see any reason whatsoever that would warrant their current price. I'm curious though, why people think otherwise. I want LTC to be around as a safe haven coin in case shit happens with BTC. Easy trades, storage and movement of funds. edit: And the volume is there to support big trades. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: tokeweed on July 05, 2015, 02:29:14 AM What are you missing? I guess that the alt-coin market is largely irrational to give clone-coins any sort of market-value in the first place. Follow on questions/analyses are meaningless and futile. Yeah. It is the time for crypto projects to evolve and be backed with something. A business model, a commodity.. just something. To me there's only BTC and LTC. Those two are the ones worth holding. The others, I like trading the momentum to acquire more BTC unless it is really backed with something. An example of this is Cannabiscoin. If they can pull it off, they could create a lucrative enterprise especially with the continued legalization of Cannabis in the states. But we'll see. It's nice to think about, and give support to. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: bathrobehero on July 05, 2015, 02:46:46 AM I honestly think both LTC and DOGE are way overstaying their welcome as I really can't see any reason whatsoever that would warrant their current price. I'm curious though, why people think otherwise. I want LTC to be around as a safe haven coin in case shit happens with BTC. Easy trades, storage and movement of funds. edit: And the volume is there to support big trades. I see but I think that if BTC would flop for some reason then so would LTC/DOGE. I just don't think there's anything that LTC/DOGE does better than BTC. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: tokeweed on July 05, 2015, 04:31:30 AM I honestly think both LTC and DOGE are way overstaying their welcome as I really can't see any reason whatsoever that would warrant their current price. I'm curious though, why people think otherwise. I want LTC to be around as a safe haven coin in case shit happens with BTC. Easy trades, storage and movement of funds. edit: And the volume is there to support big trades. I see but I think that if BTC would flop for some reason then so would LTC/DOGE. I just don't think there's anything that LTC/DOGE does better than BTC. I would disagree. There's just so much potential in the cryptocurrency space that it just can't go away because BTC "failed". If that happens the coin to go to is LTC for practical reasons. edit: Tbh, I can see BTC being replaced by something better, more scalable in the future. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: pooya87 on July 05, 2015, 06:23:19 AM i think the reason why Dogecoin is at this value is simply because of the ridiculous available supply of the Dogecoin . right now it is 100 billion Doge available. additionally every block will give a reward of 10,000 Doge and the miners will dump it on the market as soon as they get it.
with not enough demand this amount of supply will keep the price down. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: o0‡0o on July 05, 2015, 07:48:02 AM Constant reward of 5 Bill so inflation for the next 100 year is like so:
Code: Year 1 5.00% Title: Re: Why DOGE is so cheap, What am I missing?? Post by: reRaise on July 05, 2015, 10:31:27 AM doge is a ltc copy with a different name and logo slapped on top, it's the most overpriced alt.
Title: Re: Why DOGE is so cheap, What am I missing?? Post by: hiddensphinx on July 05, 2015, 11:55:58 AM A coin with consistent high volume is what that matters most
Title: Re: Why DOGE is so cheap, What am I missing?? Post by: bathrobehero on July 05, 2015, 12:41:07 PM i think the reason why Dogecoin is at this value is simply because of the ridiculous available supply of the Dogecoin . right now it is 100 billion Doge available. additionally every block will give a reward of 10,000 Doge and the miners will dump it on the market as soon as they get it. with not enough demand this amount of supply will keep the price down. Currently there are 10 BTC worth of coins are being mined every day. Compare that to the daily volume and it's safe to say the mined amount is nothing and the market can easily absorb it. A coin with consistent high volume is what that matters most I agree, I just don't see why Doge has this much volume. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: reRaise on July 05, 2015, 05:41:34 PM A coin with consistent high volume is what that matters most This is an ignorant post, if you want volume go fcking trade s&p or something. Alt coins need to have usability, innvation. Bitcoin already covers everything what 99% of alts offer including the overpriced dogecoin. There are a very, very, very few that offer a use case and a purpose, which bitcoin doesn't over. dogecoins creator abandoned his stupid coin, nuff said. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: Foerster on July 05, 2015, 06:17:31 PM The market obviously disagrees with you reRaise. ;D
What market cap would be the fair value for Dogecoin in your opinion? Title: Re: Why DOGE is so cheap, What am I missing?? Post by: Xialla on July 05, 2015, 07:02:34 PM ahh you know why? because you can't by anything with dogecoin, their creators left the community and there is simply no demand and usage, except pump and dump scenarios..
Title: Re: Why DOGE is so cheap, What am I missing?? Post by: sdmathis on July 05, 2015, 07:22:24 PM ahh you know why? because you can't by anything with dogecoin, their creators left the community and there is simply no demand and usage, except pump and dump scenarios.. Actually, you can use Doge as well as Litecoin and Bitcoin at egifter. I just noticed that the other day when I was buying an Amazon gift certificate there. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: Xialla on July 05, 2015, 07:32:11 PM ahh you know why? because you can't by anything with dogecoin, their creators left the community and there is simply no demand and usage, except pump and dump scenarios.. Actually, you can use Doge as well as Litecoin and Bitcoin at egifter. I just noticed that the other day when I was buying an Amazon gift certificate there. and why should somebody use dogecoin and not bitcoin? because of meme dog?:) sorry, but I'm generally missing the point, what is advantage of dogecoin over bitcoin..they had amazing start, creators and community but after scam with dogeparty, leaving creators and moolah.io story...well, they are done.. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: marine4u on July 05, 2015, 07:48:13 PM Who is mining doge and why are they selling the coins at a loss? That was the original question. if anyone can answer that I would appreciate. because there is significant amount of electricity expanded everyday on Dogecoin and I don't understand this low price compared to cost of mining there is a huge gap, merged mining pools DOGE/LTC with auxpow does not explain this imo.
Title: Re: Why DOGE is so cheap, What am I missing?? Post by: Foerster on July 05, 2015, 07:51:48 PM Quote but after scam with dogeparty, leaving creators and moolah.io story...well, they are done.. So you think Dogecoin has had relatively more scams than Bitcoin and I can't even remember how many extreme scams Bitcoin had. Quote Who is mining doge and why are they selling the coins at a loss? Dogecoin can be merge mined with Litecoin (AuxPoW). So in addition to Dogecoin you also get the full LTC reward. This is what most Doge & LTC miners do, hence the hash rate of DOGE & LTC is very similar.Title: Re: Why DOGE is so cheap, What am I missing?? Post by: sdmathis on July 05, 2015, 07:58:00 PM ahh you know why? because you can't by anything with dogecoin, their creators left the community and there is simply no demand and usage, except pump and dump scenarios.. Actually, you can use Doge as well as Litecoin and Bitcoin at egifter. I just noticed that the other day when I was buying an Amazon gift certificate there. and why should somebody use dogecoin and not bitcoin? because of meme dog?:) sorry, but I'm generally missing the point, what is advantage of dogecoin over bitcoin..they had amazing start, creators and community but after scam with dogeparty, leaving creators and moolah.io story...well, they are done.. There is no advantage. You said that you can't buy anything with Doge and I simply pointed out that you can. I didn't say anything about there being any advantage to using Doge. If there were an advantage, I'd use Doge. Instead, I use Bitcoin like most other people. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: lorylore on July 06, 2015, 10:22:34 AM Dogecoin i think is not cheap as you say.
I remember when it was below 0.00000050 and when we see now it is 0.00000072 Title: Re: Why DOGE is so cheap, What am I missing?? Post by: pooya87 on July 06, 2015, 01:17:21 PM ahh you know why? because you can't buy anything with dogecoin, their creators left the community and there is simply no demand and usage, except pump and dump scenarios.. i see a lot of places that you can spend dogecoin.some of the things that you can buy with dogecoin:
i personally have only used Doge for doing giveaways, buying games and donating to charity. more info: http://www.dogecoins.com/spend.php https://www.reddit.com/r/dogecoin/wiki/shop_with_dogecoin Title: Re: Why DOGE is so cheap, What am I missing?? Post by: shanem on July 06, 2015, 02:17:35 PM Dogecoin was 50 a few months ago.
I don't see much future for Dogecoin except that it is good way to attract more people to cryptocurrency. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: Netnox on July 06, 2015, 02:31:11 PM ahh you know why? because you can't buy anything with dogecoin, their creators left the community and there is simply no demand and usage, except pump and dump scenarios.. i see a lot of places that you can spend dogecoin.some of the things that you can buy with dogecoin:
i personally have only used Doge for doing giveaways, buying games and donating to charity. more info: http://www.dogecoins.com/spend.php https://www.reddit.com/r/dogecoin/wiki/shop_with_dogecoin You can do all these with BTC already, nothing special. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: Xialla on July 06, 2015, 03:48:49 PM ahh you know why? because you can't buy anything with dogecoin, their creators left the community and there is simply no demand and usage, except pump and dump scenarios.. i see a lot of places that you can spend dogecoin.some of the things that you can buy with dogecoin:
i personally have only used Doge for doing giveaways, buying games and donating to charity. more info: http://www.dogecoins.com/spend.php https://www.reddit.com/r/dogecoin/wiki/shop_with_dogecoin doesn't matter how long you list is, you can buy all stuff mentioned above with bitcoin. I enjoyed initial hype, strong community, cool leaders (Palmer, Doernberg..) and charity projects..but for last couple of months, there is nothing new (if something except meme pictures with shiba inu, let me know..) and dogecoin just stuck somehow as many similar projects.. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: pooya87 on July 07, 2015, 05:17:04 AM ahh you know why? because you can't buy anything with dogecoin, their creators left the community and there is simply no demand and usage, except pump and dump scenarios.. i see a lot of places that you can spend dogecoin.some of the things that you can buy with dogecoin:
i personally have only used Doge for doing giveaways, buying games and donating to charity. more info: http://www.dogecoins.com/spend.php https://www.reddit.com/r/dogecoin/wiki/shop_with_dogecoin doesn't matter how long you list is, you can buy all stuff mentioned above with bitcoin. I enjoyed initial hype, strong community, cool leaders (Palmer, Doernberg..) and charity projects..but for last couple of months, there is nothing new (if something except meme pictures with shiba inu, let me know..) and dogecoin just stuck somehow as many similar projects.. it is a dead coin with nothing new as far as i am concerned. nowadays it has a price rise but after the litecoin hype ends , Doge will start going down again. Doge is just a meme and i only enjoy the community that is all. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: JobCreator on July 14, 2015, 03:10:58 AM Here is something else you can buy with DOGE:
https://bleutrade.com/exchange/ZET/DOGE Title: Re: Why DOGE is so cheap, What am I missing?? Post by: Zetacoin Express on July 14, 2015, 03:13:18 AM Here is something else you can buy with DOGE: https://bleutrade.com/exchange/ZET/DOGE Hehe, that's the best use for DOGE LOL! ;D Not much sell order's though. Makes sense. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: Ingatqhvq on July 14, 2015, 10:05:54 AM Cheap?
In my opinion, doge is too expensive now. Come on, it is just a copy of litecoin. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: cryptonikus on July 14, 2015, 11:16:53 AM there is nothing valueable in doge... old joke is old.
Title: Re: Why DOGE is so cheap, What am I missing?? Post by: hiddensphinx on July 14, 2015, 12:35:41 PM there is nothing valueable in doge... old joke is old. yeah all this talk about going to moon....slap on the haters face it does happen ::) Title: Re: Why DOGE is so cheap, What am I missing?? Post by: Abiky on July 14, 2015, 01:36:27 PM I was one of the first miners for Doge coin back in late 2013 while I was working on the Marinecoin wallet, I had 20 MH GPU rigs huge scrypt hash back then and was very hard to mine DOGEs even back then, now the the Doge hashrate is over 1THs with the power of 3000 KNC Titan Asic Scrypt miners requiring 1700 Watt each and yet daily rewards total is merely 2,400 USD. not even close enough to cover electricity costs let alone the cost of manufacturing the rigs even if you had free electricty You can buy entire days DOGE output for only for 2400 USD on the exchange, if you decide to mine that amount cheapest rig rental is 0.00045 BTC per MH per hour would cost 45 BTC per hour x 24 hours = 1080 BTC cost per day to hire a rigs to mine a days supply of doge coin 240.000 USD, considering that many rigs are not available for hire it is also impossible to mine it if you were the richest man in the World. Litecoin daily reward at 120.000 USD with just about the same hashrate. Litecoin community pretty much doesn't exist, Doge community is by far the strongest and by far the most active same goes for their devs, usage of Dogecoin surpassed LTC and if a site accepts LTC it usually also accepts doge, same goes for exchanges, Doge in China is as big as BTC. if a corporation decided to create a similar market awareness for anything it would cost 100s of millions in USD in just marketing yet entire Doge market cap can not buy a 5 bedroom apartment in NYC. and probably only could afford to get a 1 bedroom apartment in NJ if they really decided to sell their Dogecoins and get one. Someone tell me what I am missing? Marinecoin DEV Dogecoin is cheap, for sure, but it is relative. To explain it better, there is another coin, I will not name it, just some characteristics: 1) The trade volume of coin used to be higher than Doge's one in 2014. 2) One of developers of this coin is a person on whose code Dogecoin was based. 3) There is an active community of this coin and this coin is not very much less known than DOGE, here on Bitcointalk, at least. 4) There is a good liquidity on Cryptsy. 5) It has much better name. 6) You can buy on Amazon, eBay, Overstock, Barnes&Noble, Groupon etc. with this coin. 7) Total supply is limited and year mining inflation is 5% only, pure PoW. The market cap of this coin is under $200,000. Dogecoin's market cap is $19 mln. The problem is: people don't invest in coins now. They would better buy an appartment in NYC than investing in Dogecoin, or buy a car than investing in above mentioned coin. You may tell them a lot, you may promote, people will not listen, will not buy - for the time being. The boom will come a bit later. We should wait and that is all. I'm interested in the name of this coin. Could somebody PM the name? I would really appreciate it. Thanks Title: Re: Why DOGE is so cheap, What am I missing?? Post by: lorylore on July 14, 2015, 10:22:03 PM Doge was much more cheaper (like @48) but now it is ok, it is not best but it is ok.
Title: Re: Why DOGE is so cheap, What am I missing?? Post by: okbit on July 16, 2015, 01:00:52 PM Doge really isn't cheap. It still is 5th in market cap.
Title: Re: Why DOGE is so cheap, What am I missing?? Post by: lorylore on July 16, 2015, 01:13:45 PM Doge really isn't cheap. It still is 5th in market cap. Market cap is $ 17,931,253 , the price has dropped a bit as the bitcoin price drops had it effect Title: Re: Why DOGE is so cheap, What am I missing?? Post by: Omikifuse on July 16, 2015, 01:15:11 PM Joke is a joke coin.
What I don't get is why too many people took it seriously and decided to buy such expensive stuff to mine Doges Title: Re: Why DOGE is so cheap, What am I missing?? Post by: lorylore on July 16, 2015, 01:42:00 PM Joke is a joke coin. What I don't get is why too many people took it seriously and decided to buy such expensive stuff to mine Doges Before mining doge was very fun and very high profit (if you ever heard for cointellect which scammed at the end) Title: Re: Why DOGE is so cheap, What am I missing?? Post by: pseudonymdude on July 16, 2015, 05:11:26 PM Unfortunately, not many actually use cryptocurrencies. Cryptocurrencies are better thought of as a commodity like gold than a currency.
Even if doge has 50,000 users who spend $5 a year on products, it's marketcap doesn't need to be anywhere near what it is. It's marketcap is so high because people are investing in what they believe the future will bring, and unfortunately, it has lost its momentum. That doesn't mean it couldn't be pumped much higher at one point. Litecoin was pumped from .007 to .03 in a very short period of time, until recently falling back to .013; but dogecoin is very unlikely to have a serious increase of adoption. Superior technology is the only thing that can set altcoins apart, with the hope adoption will come later. The only coin that I've seen with a talented developer who's trying to solve all the problems with Bitcoin is Vanillacoin. Current Features: -Can be compiled on any platform, including Windows, MacOS, Android, iOS, game consoles, etc. No other cryptocurrency can do this. -Full, staking mobile wallets with transferable wallet.dat -Only other coin besides BTC to require only 1 confirmation on Poloniex. -Unlike Bitcoin, Vanillacoin's global transaction pool is highly synchronized, which makes malicious block reorganizations nearly impossible. -Active dev, most talented I've seen in the altcoin space. Look into it for upcoming features. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: Hollingsworth on July 17, 2015, 06:14:51 AM The problem is that you are looking at this as if the cost of producing a product has anything to do with the price of a product. Cost is irrelevant. Supply and demand is king. Imagine that it costs $100 to produce a hamburger. How many $100 hamburgers do you think that you could sell? Now imagine that you posses ALL the food in the world and Bill Gates is starving to death. I'll bet that that you could sell Bill Gates a $100 hamburger. Even if it only cost you 50 cents to produce. When producing a commodity like oil, gold, silver, etc. ..., production stops or slows down when costs exceed income. Price only rises when the market raises the price. Crypto is the same way. Mining does have an effect on price, but it's a negative effect. Heavy mining tends to drive the price down because it increases the available supply. Then as prices drop, mining slows down and prices have an opportunity to go back up ( only an opportunity because demand must rise for prices to go up ). It's unfortunate that the economics don't allow most people to mine many coins profitably any more, but mining is not dead yet. You just can't do it with coins like Doge any more. This is a very good analysis. Also throw in the random premine/instamine factor, where devs/miners can crash the price of their alt coins in an instant, and you pretty much know why coin prices are the way they are. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: pseudonymdude on July 17, 2015, 06:39:34 PM The problem is that you are looking at this as if the cost of producing a product has anything to do with the price of a product. Cost is irrelevant. Supply and demand is king. Imagine that it costs $100 to produce a hamburger. How many $100 hamburgers do you think that you could sell? Now imagine that you posses ALL the food in the world and Bill Gates is starving to death. I'll bet that that you could sell Bill Gates a $100 hamburger. Even if it only cost you 50 cents to produce. When producing a commodity like oil, gold, silver, etc. ..., production stops or slows down when costs exceed income. Price only rises when the market raises the price. Crypto is the same way. Mining does have an effect on price, but it's a negative effect. Heavy mining tends to drive the price down because it increases the available supply. Then as prices drop, mining slows down and prices have an opportunity to go back up ( only an opportunity because demand must rise for prices to go up ). It's unfortunate that the economics don't allow most people to mine many coins profitably any more, but mining is not dead yet. You just can't do it with coins like Doge any more. This is a very good analysis. Also throw in the random premine/instamine factor, where devs/miners can crash the price of their alt coins in an instant, and you pretty much know why coin prices are the way they are. His analysis is not that good, in my opinion. He's right that supply and demand is all that matters, but the number of coins per block is hard-coded. Less hash doesn't decrease the amount of coins being created (well, maybe it does until difficulty adjusts); it just decreases the number of hands and the cost of obtaining those coins. The honest demand for dogecoin was based on its future potential. The growth was explosive for the first few months. Since it had a high marketcap and it was being mined out so quickly, its hashrate even overtook Litecoin's at one point. It was getting press on major financial news stations and hitting the front page of reddit for sponsoring the Jamaican bobsled team and the dogecoin car, but its brand growth/adoption started to wane around mid 2014 (its price started collapsing even earlier, around the first halvening, when its hashrate went back down below Litecoin's - mid Feb. 2014) and screeched to a halt around Q4 2014 when the moolah fiasco unraveled. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: lorylore on July 20, 2015, 11:10:38 PM Check on the crypto market cap, the value of the cryptocurrencies varies from bitcoin, if bicoin is up others are up.
Title: Re: Why DOGE is so cheap, What am I missing?? Post by: mathgal23 on July 20, 2015, 11:55:58 PM DOGE has good distribution, but there are a LOT of coins in circulation and inflation is high
It will be interesting to see how things play out. Other coins could learn from DOGE marketing Title: Re: Why DOGE is so cheap, What am I missing?? Post by: lorylore on July 21, 2015, 07:54:42 PM DOGE has good distribution, but there are a LOT of coins in circulation and inflation is high It will be interesting to see how things play out. Other coins could learn from DOGE marketing Yes, i loveed the DOGE coin since when it was launched for the first time, the wallet the design the coin it self. Title: Re: Why DOGE is so cheap, What am I missing?? Post by: Abiky on July 22, 2015, 12:07:41 AM DOGE has good distribution, but there are a LOT of coins in circulation and inflation is high It will be interesting to see how things play out. Other coins could learn from DOGE marketing Yes, i loveed the DOGE coin since when it was launched for the first time, the wallet the design the coin it self. I think DOGE is pretty good for tipping. Maybe that makes DOGE a pretty useful crypto. The devs should have limited DOGE supply to 25 million in order to reduce inflation and thus price would be higher. At this pace, looks like it's pretty far for DOGE to become worth at least $1 Title: Re: Why DOGE is so cheap, What am I missing?? Post by: lorylore on July 22, 2015, 12:14:32 PM DOGE has good distribution, but there are a LOT of coins in circulation and inflation is high It will be interesting to see how things play out. Other coins could learn from DOGE marketing Yes, i loveed the DOGE coin since when it was launched for the first time, the wallet the design the coin it self. I think DOGE is pretty good for tipping. Maybe that makes DOGE a pretty useful crypto. The devs should have limited DOGE supply to 25 million in order to reduce inflation and thus price would be higher. At this pace, looks like it's pretty far for DOGE to become worth at least $1 What i like most to DOGE is that it has its fee very very low when we compare to bitcoin which is pretty high at least for me. Yeah, for tipping is great, the confirmation to go to the person is very fast |