Celebrities love Dogecoin. They may not have agreed on much, but at the moment celebrities who couldn’t even see eye to eye unanimously support Dogecoin. But veteran crypto investor London Crypto labels this a mere passing fad, calling it a “cool kid’s shiny new 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 Dogecoin supporter, won’t be for much longer.
It started as a joke. Dogecoin was supposed to be a meme for the clown on Bitcoin. Made in 2013, it was all just light hearted comedy. Today it stands shoulder-to-shoulder with the very Bitcoin it once ridiculed. This can mainly be attributed to Elon Musk calling it his favorite cryptocurrency. London Crypto lists some reasons why it could never continue to be his favorite.
To begin with, unlike most major cryptocurrency projects, Dogecoin has no actual community or team. This means that there is no one to come to your rescue if necessary. If in an emergency you need a quick solution from the Dogecoin team, you may end up waiting for a few months.
“The security is as big a joke as the meme itself,” says The London Crypto. Dogecoin is plagued with issues – from problems related to wallet hacking to negligible computing power. No cryptocurrency can continue much longer with problems as severe as these, and over time such projects usually suffer staggering losses before being forced to shut down. London Crypto points out that such issues are usually something expert investors like Elon Musk are already well aware of. Which makes Dogecoin and its plethora of problems a ticking time bomb that could go off in the face of any novice investor who wasn’t smart enough to run away in time.
While Dogecoin is bogged down by its many problems, other crypto projects are making rapid progress and catching up quickly. With tons of competition threatening to take over the market, Dogecoin has no chance of recovery – it will fall sooner or later. Projects with better, more sophisticated technology and highly qualified experts will trump 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. That supply limit makes it anti-inflationary. Dogecoin, on the other hand, has no such cap, making it inflationary. Inflation is something nobody wants, and it’s one of the reasons Bitcoin was created in the first place. Take that away and Dogecoin doesn’t really help the economy that much.
While Dogecoin enjoyed unprecedented levels of love and excitement with the help of unexpected celebrity endorsements, The London Crypto is confident that there is only so much good marketing and advertising can do. If the product does not have a quality offering, there is no real possibility that it can ever continue to thrive. When its many flaws become apparent to chief investor Elon Musk, London Crypto says there is little chance he would voluntarily choose to continue supporting it.
