While gauging whether a cryptocurrency investment inKenya is good or not, we look at several factors. Firstly, the initial ethos behind the creation of the coin, or its business proposition. What problem in the society does is it seek to solve? Dogecoin was created as a parody coin; it is sometimes referred to as a joke coin. The ethos behind the Dogecoin is therefore not strong. Secondly, we consider the total and circulating supply. Unlike Bitcoin, Dogecoin has an unlimited supply. Billions of Dogecoin are mined annually, making it highly unlikely to maintain stability in the long term and inflationary.
Price history is also a factor to consider before deciding if dogecoin $DOGE is a good investment. The price history of a currency shows a particular pattern with its value, making it easy to predict future prices. Dogecoin has in the past had bull runs then majorly depreciated. We also look at the developer activity; a strong project has consistent developer activity. Dogecoin was first updated in 2021, after its creation in 2013. This trend shows very minimal developer activity. Bitcoin contains 10,000 nodes, while Dogecoin contains 1090 nodes, making Dogecoin more susceptible to security attacks.
Despite Dogecoin defying all traditional sense of a good investment, it has seen growth by more than 2000% within a short period. Like a good investment, Dogecoin has high community activity, which has been its main and probably only driving force. Dogecoin has enjoyed high-profile support from Mark Cuban, the Mavericks basketball team owner, and Elon Musk, CEO of Tesla. Dogecoin has also been the subject of many memes on Reddit, making it trend and acquire more buyers. The Dogecoin Twitter account has a large following which is also a community activity. For most people, buying Dogecoin is not to make money (which might also happen) but to be a part of something bigger.
So, is Dogecoin a good investment in Kenya? The answer to that question should be personal. It is advisable to carry out research and only invest money you can afford to lose. While looking for a long-term investment, it is recommended to buy into value and not hype. Click here to learn how you can buy and trade in DOGECOIN in Nairobi
