Why DOGE is so cheap, What am I missing??

[lorylore]

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

[Omikifuse]

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

[lorylore]

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)

[pseudonymdude]

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.

[Hollingsworth]

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.

[pseudonymdude]

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.

[lorylore]

Check on the crypto market cap, the value of the cryptocurrencies varies from bitcoin, if bicoin is up others are up.

[mathgal23]

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

[lorylore]

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.

[Abiky]

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

[lorylore]

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