Started as a joke, Dogecoin has now become an important virtual currency and attracts a lot of users. It has also reached highest daily trading volume compared to other competitors.
According to Bitinfocharts.com, Dogecoin transactions have reached more than 102,252 in the past 24 hours, far ahead of its popular competitor such as Bitcoin (around 56,169 transactions) and Litecoin (9329 transactions). The figure below shows how Dogecoin dramatically overtakes Bitcoin to be a popular cryptocurrency just last December.
Although Dogecoin has achieved great success, it’s unlikely to be the future leader of virtual currency. This is because its developmental direction is different from other digital currencies.
Bitcoin and Litecoin are suitable for reserves because of their higher prices, and they have room for developmental improvement.
Dogecoin is purely designed for trading. Unlike credit cards or other payment methods, Dogecoin transactions have no extra costs, and the transaction amount can be as small as $0.001.
Micropayment has great potential as it opens new windows for service and good trading. It’s seen as a future developmental direction of Bitcoin.
Jackson Palmer, Dogecoin’s founder said:” Currency should be used for exchange of goods and services, there’s no benefit in storing the digital currency. We hope to promote cryptocurrency’s growth and usage through Dogecoin’s creation.
Dogecoin has higher stability than other digital currency. It doesn’t have volatility in price, and some of its features make it a good choice for investors.
And now there are many Dogecoins waiting to be excavated, the pie chart below shows the number of unmined Dogecoins. It has huge potential in the cryptocurrency market.
In addition, Dogecoin has comparatively lower prices, and can maintain its prices at relatively stable level. All 102,252 transactions have a total value of less than $13.5 million. Compared to Bitcoin’s average hour trading volume of $23 million, and Litecoin’s hourly turnover of $6 million, Dogecoin’s transactions are relatively small-scale.
We are not saying that talk coins bad, the attraction it gains has shown its significant value. However, it’s unlikely that Dogecoin will replace the Bitcoin to be the world’s number one crypto currency. We should continue to observe this cute little doggie.