Celebrities love Dogecoin. They may not have agreed on much, but right now, celebrities who couldn’t even see each other are unanimously supporting Dogecoin. But veteran crypto investor The London Crypto calls it just a passing fad, calling it “a shiny new cool kid’s toy.” We sat down for a candid chat with The London Crypto about why he thinks a billionaire like Elon Musk, who is currently an ardent supporter of Dogecoin, won’t be around for too long.
It started as a joke. Dogecoin was supposed to be a meme for clowning around at bitcoin. Created in 2013, it was just a light comedy. Today, he stands side by side with the same Bitcoin he once ridiculed. This can mainly be attributed to Elon Musk calling it his favorite cryptocurrency. The London Crypto lists a few reasons why it could never continue to be its favorite.
For starters, unlike most big cryptocurrency projects, Dogecoin doesn’t have a real community or team. This means that there is no one who can come to your rescue if needed. If in an emergency situation you need a quick fix from the Dogecoin team, you may end up waiting a few months.
“His safety is as big a joke as the meme itself,” says The London Crypto. Dogecoin is plagued with problems – from problems with wallet hacks to negligible computing power. No cryptocurrency can last longer with problems as severe as these, and over time such projects usually suffer staggering losses before being forced to shut down. The London Crypto points out that these issues are usually something that expert investors like Elon Musk are already well aware of. Which makes Dogecoin and its plethora of problems a ticking time bomb that could explode in the face of any novice investor who wasn’t smart enough to get away in time.
While Dogecoin is bogged down by its many issues, other crypto projects are making rapid progress and are catching up fast. With abundant competition threatening to take over the market, Dogecoin has no chance of recovery – it will fall sooner and later. Projects with better, more sophisticated technology and highly skilled experts will win out over the project, observes The London Crypto.
Finally, Bitcoin has a cap on the number of Bitcoins that can be mined – 21 million, to be exact. This supply limit makes it anti-inflationary. Dogecoin, on the other hand, does not have such a cap, which makes it inflationary. Inflation is something no one wants and is one of the reasons Bitcoin was created in the first place. Take that out and Dogecoin doesn’t really help the economy that much.
While Dogecoin has seen unprecedented levels of love and adulation with the help of unexpected celebrities, The London Crypto is certain there isn’t much that good marketing and advertising can do. TO DO. If the product does not have a quality supply, there is no real possibility that it can continue to thrive. Once its many flaws became apparent to its lead investor Elon Musk, The London Crypto says there’s little chance it will voluntarily choose to continue backing it.