Dogecoin is unlikely to truly make people rich:
- Highly speculative: Dogecoin was initially just a joke on the internet, born out of meme culture, lacking the value foundation based on technological vision and economic models like Bitcoin. Its price is often hyped through social media popularity and celebrity endorsements; a few tweets from Musk can send its price soaring or plummeting, and investors who buy in at high prices often find themselves deeply trapped once the hype subsides.
- Infinite supply risk: Unlike Bitcoin's capped supply of 21 million coins, Dogecoin has no upper limit, meaning that over time, the inflation risk is extremely high. The continuous production of new coins will keep diluting the value of existing coins, and those who hold onto it hoping for appreciation and wealth may instead watch their assets continuously depreciate.
- Intense market competition: The cryptocurrency market sees new products emerging constantly, with all sorts of innovative projects popping up every day. Dogecoin has a single function and lacks prominent technical advantages, making it easy to be marginalized in the competition. Investors betting on it to achieve financial freedom are likely to be disappointed.
- Regulatory uncertainty: Global regulatory trends are unpredictable; if policies tighten against these high-heat, high-volatility niche cryptocurrencies, Dogecoin will be among the first to be affected. At that point, trading channels may be restricted, and market panic selling could turn the dream of sudden wealth into a mere illusion.
