How to view the unlimited issuance of DOGE
Whether the unlimited issuance of Dogecoin (DOGE) will have value in the future is highly uncertain. Here are some opinions supporting and opposing its value:
- Supporting opinions:
- Strong community support:
The community often initiates activities such as charitable donations, which enhances the public image and popularity of Dogecoin and attracts more people to pay attention to and participate in the Dogecoin ecosystem.
- Payment attributes and application scenario expansion:
Dogecoin has fast transaction speed, low handling fees, good payment attributes, and has been accepted as a payment method by some companies and services.
- The continued influence of the celebrity effect:
Tesla CEO Elon Musk is a well-known supporter of Dogecoin, and his remarks and actions have a great impact on the price of Dogecoin.
- Opportunities brought by technological upgrades and cooperation
: The Dogecoin team has been making technical improvements, such as reducing transaction fees and increasing transaction speed, to enhance its competitiveness in the payment field.
- Moderate inflation is conducive to market stability:
The inflation rate is increased by about 5% each year. Moderate inflation avoids drastic price fluctuations caused by supply scarcity, which is conducive to maintaining market stability and also allows Dogecoin to form a relatively stable supply and demand relationship in the market.
- Opposing views:
- Unlimited supply may lead to value dilution:
Unlimited issuance means that the supply of Dogecoin will continue to increase, which may lead to its value dilution in the long run.
- Limited practicality restricts value enhancement: Although Dogecoin has certain application scenarios in small payments, its application scope is still relatively limited compared with traditional legal currencies.
- High market volatility risk:
Global macroeconomic situation, policy changes, industry emergencies and other factors may cause market sentiment to fluctuate and cause its price to fluctuate violently.
- Uncertainty of regulatory policies:
As the market size of Dogecoin expands, it may face stricter regulatory scrutiny. Changes in regulatory policies may have a significant impact on the trading, use and development of Dogecoin.
