There’s a high probability that Dogecoin will reach $1 per coin. $10 per Dogecoin is also likely within this decade. However, it’s impossible that Dogecoin will ever get to $1000 per coin. Let’s explain.
Unlike other cryptocurrencies, Dogecoin doesn’t have a cap. In order to keep the network secure and operational, there’s always an incentive of 5 billion coins per year for miners. By the end of 2030, there will be 180 billion Dogecoin in circulation. If Dogecoin reaches $1 valuation per token, the total market cap of Doge would be $180 billion. It’s not that crazy high.
There are currently around 18 million Bitcoins in circulation, and it has a market cap of about $900 billion. The second-largest crypto Ethereum has a market cap of $200 billion. Similar to Dogecoin, Ethereum also doesn’t have a coin cap.
Over the years, Bitcoin and Ethereum have shown its strength and weaknesses.
Nowadays, Bitcoin is considered as an asset, an investment vehicle to grow money. Therefore, people now buy Bitcoin and hold on to it.
The transaction cost of Bitcoin is rising steadily. It’s already prohibitively high enough to be useful for daily retail transactions. Ethereum’s transaction fees are also high.
On the other hand, Dogecoin has promisingly low transaction fees. Moreover, as there are 5 billion coins per year for miners, the Dogecoin transfer fee will remain low. Furthermore, Dogecoin transfer time is 10x faster than Bitcoin.
So, there’s the tremendous growth potential for this coin. A market cap of $180 billion is not impossible. Therefore, $1 per Dogecoin is not a pipe dream. However, $1000 per Dogecoin is unachievable. Let’s explain.
The US has a GDP of around $21 trillion, and China has approximately $15 trillion. If we sum up all the countries’ GDP, the total GDP would be $87 trillion.
Source: https://www.statista.com/statistics/268750/global-gross-domestic-product-gdp/
For each dollar increase in Dogecoin price, the market cap would need to rise $180 billion. So, for $1000 per Dogecoin, the total market cap of Doge would be more than $180 trillion, two times that of the world’s economy. It’s absurd. Never going to happen.
Many people don’t trust the US government. As treasury printing money, the government adding debt recklessly, and inflation soaring, many are dissatisfied. They want a financial system that is independent of any government control. That’s why over the years, Bitcoin and other cryptocurrencies became popular.
Still, the regular currency has superior use cases and functionality than cryptocurrency. Wider acceptance, faster and easier transfer are a few of them. Our whole economy revolves around traditional money. On the contrary, cryptocurrency is still in its infancy. Only a few people know about it, and it isn’t widely accepted. Cryptocurrency is also highly volatile.
Nevertheless, Bitcoin, Ethereum, and other cryptocurrencies have shown great potential. But still, it’s not enough to replace the US dollar.
There are hundreds of cryptocurrency. Every coin has pros and cons. Therefore, it’s tough to predict which one will become mainstream cryptocurrency. Even if single crypto becomes the world’s de facto crypto still, there’s no possibility that Dogecoin will ever become more valuable than the whole world’s GDP. It doesn’t make any sense.
From our experience with Bitcoin and Ethereum, we expect that Dogecoin will reach $1 because it has far more potential than Bitcoin. Even Tesla and SpaceX CEO Elon Musk believes that Dogecoin is underestimated. Elon Musk is the founder of X.com, which later became PayPal. Therefore, he knows what he is talking about. However, Dogecoin will never reach $1000 per coin.