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The official Dogecoin X account shared a fun fact about the biggest dog cryptocurrency by market capitalization, Dogecoin (DOGE).
The official Dogecoin X account brings attention to the fact that five billion DOGE are minted every year, which keeps Dogecoin's inflation rate declining. It highlights the implication of this: "More DOGE means less hoarding and more spending. Money is for moving, not collecting like rare Pokemon cards."
Dogecoin has a diminished inflation rate as it has a fixed yearly issuance of five billion coins. This annual issuance is needed to pay miners and keep the network secure. The implication of this is that each year, the rate of inflation drops compared to the total supply. Developers say this feature makes Dogecoin the perfect candidate to be used as a currency.
Dogecoin is not meant to be hoarded, as hoarding is a major barrier to a cryptocurrency being used as an actual currency. This set path implies that there is no need for Dogecoin burning, unlike other cryptocurrencies.
Dogecoin’s supply is also not unlimited, as it has an absolute limit of issuance per block, per day, per year. The only difference between Dogecoin’s issuance and other coins is that it does not have an end date. Therefore, Dogecoin is only "infinite" over "infinite time." Over a finite time, its issuance remains finite. Developers believe that putting a cap on Dogecoin would render the network insecure and vulnerable to attacks.
Dogecoin price
Dogecoin reversed a five-day drop after reaching a low of $0.087 on Feb. 11. However, the rebound has failed to reach $0.10, with Dogecoin remaining in the $0.09 range.
At the time of writing, Dogecoin was up 0.87% in the last 24 hours to $0.093 and up 3.37% weekly.
If Dogecoin returns above $0.10 from which it turned down on Feb. 6, it might suggest that the bearish momentum is weakening. Dogecoin may then jump toward the barrier at $0.122, which coincides with the daily MA 50.
Alternatively, if the price continues lower, it might drop to the $0.08 level, which is likely to attract buyers. If Dogecoin breaks below $0.08, it might signal the start of fresh selling, and it might fall to $0.06 next.
Vladislav Sopov
Dan Burgin