the situation with Doge

[tspacepilot]

I know it was a hot commodity for a little while last summer.  But I also read somewhere that it was completely inflationary.  If I understand this right, it means that people's DOGE are getting less and less valuable over time.  Is that right?  What's the situation now?  Why would anyone buy Doge at this point?  Not trolling just curious to understand how an inflationary currency can be valuable.

[CryptoMrM]

I know it was a hot commodity for a little while last summer.  But I also read somewhere that it was completely inflationary.  If I understand this right, it means that people's DOGE are getting less and less valuable over time.  Is that right?  What's the situation now?  Why would anyone buy Doge at this point?  Not trolling just curious to understand how an inflationary currency can be valuable.

Certainly inflation isn't always good but it's not a reason for a coin not to be successful.

In theory yes inflation will make it decrease in value because basic economics says that an excess in supply and the same demand will lead to this. However it's not always the case and you can look at bitcoin as an example of this, which is also inflationary.

A few days ago there was an announcement that a tiny country in Europe were going to adopt the currency and this created a hype which lead to a massive jump in value. The country is a bit of a joke though and really does nothing for doge but give it some news coverage.

I personally share no interest in Dogecoin and one of its key founders has also been noted to call it a 'joke' coin. Yet it continues to have a large market cap and loads of transactions compared to others which is where the majority of its value to investors is.

Before the jump many people would have considered it slowly dying, maybe in the short future it will go back to that.

In short I can't see it offering much practical use and its community (particularly key members) have been reluctant to welcome markets (e.g. gambling). Therefore for anything other than short-term investment speculation, I wouldn't want to touch it.

[MicroGuy]

I know it was a hot commodity for a little while last summer.  But I also read somewhere that it was completely inflationary.  If I understand this right, it means that people's DOGE are getting less and less valuable over time.  Is that right?  What's the situation now?  Why would anyone buy Doge at this point?  Not trolling just curious to understand how an inflationary currency can be valuable.

Most cryptocurrencies are inflationary, otherwise there would be little incentive to mine other than to collect transaction fees. If new users are coming in at a rate that supports inflation levels, the price will not suffer. If the inflation rate exceeds the amount of new interest, the price will suffer.


I think 5 years from now, the ultimate winners will be those coins with codebases that are independent of other coins. That means dogecoin will need to evolve or die.

[pc888]

Far too many coins for me.

[Undermood]

It is just the clone of litecoin and has nothing new features developed since it was launched. It is popular for its use in tipping. As most of the other good coins can take the place of dogecoin, so dogecoin becomes redundant. I wouldn't invest in dogecoins.   

[Este Nuno]

From what I've been told Doge is currently a lot less inflationary than Bitcoin is. Something like Bitcoin is around 100% more inflationary.

[Snail2]

Inflationary nature isn't really an issue for a coin if you can buy services with it and enough new users and money flowing in. I guess the low number of new users is the problem with doge. 

[NorrisK]

From what I've been told Doge is currently a lot less inflationary than Bitcoin is. Something like Bitcoin is around 100% more inflationary.

Indeed, and bitcoin will be highly inflationary for many many years to come. You will probably not even see the end of the inflationary period in your life.

[canth]

Litecoin with a dog logo. Who would have thought that wouldn't last the test of time?

[tspacepilot]

I must be missing something because many of you guys have said that bitcoin is inflationnary.  But I don't think this is correct insofar as there's a known number of bitcoins going to be produced ever.  Some bitcoins will inevitably be lost, so this seems deflationary to me.  Maybe I didn't understand what was said to me about dogecoin being inflationary.  Isn't there something doge where it will never cease to produce more and more coins faster and faster, or somerthing like that?

Also, thanks to the poster who talked about the rumor about the "joke" country adopting Doge.  But, I have to follow up, what country was it?  And was the news itself a joke?

[DaveyJones]

I must be missing something because many of you guys have said that bitcoin is inflationnary.  But I don't think this is correct insofar as there's a known number of bitcoins going to be produced ever.  Some bitcoins will inevitably be lost, so this seems deflationary to me.  Maybe I didn't understand what was said to me about dogecoin being inflationary.  Isn't there something doge where it will never cease to produce more and more coins faster and faster, or somerthing like that?

Also, thanks to the poster who talked about the rumor about the "joke" country adopting Doge.  But, I have to follow up, what country was it?  And was the news itself a joke?

The country was the joke... can´t remember its name but some guy claimed his "own" country somewhere in middle/eastern europe. So yes the country and the news itself was a joke

[andy35]

Inflationary nature isn't really an issue for a coin if you can buy services with it and enough new users and money flowing in. I guess the low number of new users is the problem with doge. 

Dogecoin will get real into trouble once one coin cost 0.00000001 BTC because then they will only be able to trade against LTC or NxT. After that they will lose a lot of volume.
This is the only problem with inflation in Bitcoin world.

Cryptsy has opened ripple markets for very low priced coins. One ripple is worth less than one NXT.

[sdmathis]

I must be missing something because many of you guys have said that bitcoin is inflationnary.  But I don't think this is correct insofar as there's a known number of bitcoins going to be produced ever.  Some bitcoins will inevitably be lost, so this seems deflationary to me.  Maybe I didn't understand what was said to me about dogecoin being inflationary.  Isn't there something doge where it will never cease to produce more and more coins faster and faster, or somerthing like that?

Also, thanks to the poster who talked about the rumor about the "joke" country adopting Doge.  But, I have to follow up, what country was it?  And was the news itself a joke?

Bitcoin is inflationary until it hits it's upper limit of coins, then it becomes slightly deflationary due to lost coins.

All POW coins and most POS coins are inflationary to some degree as long as new coins are created. It's just that some coins are more inflationary than others. Ideally, a small amount of inflation is actually beneficial whereas too much inflation will kill a coin (e.g., Balls, 10K, etc...).

[Bit_Happy]

DOGE has a history of good/great percentage rallies and "dead dog" bounces. You can make a LOT of profits, if you know how to trade a bear market. 

[Foerster]

Isn't there something doge where it will never cease to produce more and more coins faster and faster, or somerthing like that?

Quite the opposite.
Doge inflation will be lower and lower and in the long run will strive towards zero but never reach it (maybe in real terms when factoring in lost Dogecoin).
This year Dogecoin inflation will be ~5%, the year thereafter 4.76% etc.

As of now the Dogecoin inflation formula is:
5/(100+5*(x))
Where x is the number of years from now. So in 6 years the Dogecoin inflation is around ~3.8%

I think out of the top 10 crypto-currencies, Dogecoin probably has one of the lowest inflation rates at the moment. Most coins have far bigger supplies that are about to be released.

[tspacepilot]

Isn't there something doge where it will never cease to produce more and more coins faster and faster, or somerthing like that?

Quite the opposite.
Doge inflation will be lower and lower and in the long run will strive towards zero but never reach it (maybe in real terms when factoring in lost Dogecoin).
This year Dogecoin inflation will be ~5%, the year thereafter 4.76% etc.

As of now the Dogecoin inflation formula is:
5/(100+5*(x))
Where x is the number of years from now. So in 6 years the Dogecoin inflation is around ~3.8%

I think out of the top 10 crypto-currencies, Dogecoin probably has one of the lowest inflation rates at the moment. Most coins have far bigger supplies that are about to be released.

Thanks for the straight-up info, Foerster.  So, if I understand you correctly, the number of doge to be produced is non-finite, but the number of coins created per year asymptotically approaches 0?  Is DOGE one of the POS/POW hybrids?  Above people were calling it a litecoin clone with a dog logo, but I don't think litecoin has any staking, does it?

[RaginglikeaBoss]

Isn't there something doge where it will never cease to produce more and more coins faster and faster, or somerthing like that?

Quite the opposite.
Doge inflation will be lower and lower and in the long run will strive towards zero but never reach it (maybe in real terms when factoring in lost Dogecoin).
This year Dogecoin inflation will be ~5%, the year thereafter 4.76% etc.

As of now the Dogecoin inflation formula is:
5/(100+5*(x))
Where x is the number of years from now. So in 6 years the Dogecoin inflation is around ~3.8%

I think out of the top 10 crypto-currencies, Dogecoin probably has one of the lowest inflation rates at the moment. Most coins have far bigger supplies that are about to be released.

Thanks for the straight-up info, Foerster.  So, if I understand you correctly, the number of doge to be produced is non-finite, but the number of coins created per year asymptotically approaches 0?  Is DOGE one of the POS/POW hybrids?  Above people were calling it a litecoin clone with a dog logo, but I don't think litecoin has any staking, does it?

Doge is PoW only.  It's merge mined with Litecoin.

[onewiseguy]

Doge coin is still a community run coin and has a wide user base, regardless of price.

[Bit_Happy]

Doge coin is still a community run coin and has a wide user base, regardless of price.

Recently, it keeps going higher, and higher, and higher; I don't know if there will ever be a chance to buy Doge so cheap again.........LOL? 

[Snail2]

Dogecoin will get real into trouble once one coin cost 0.00000001 BTC because then they will only be able to trade against LTC or NxT. After that they will lose a lot of volume.
This is the only problem with inflation in Bitcoin world.

Trading against LTC or NXT isn't an issue until these coins worth more than 1 sat . But I think 0.00000001 BTC/doge it a bit too pessimistic today.