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Breaking News: Bitcoin Hits ATH Of $112,000, Expert Predicts Rally Is Just Beginning
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Breaking News: Bitcoin Hits ATH Of $112,000, Expert Predicts Rally Is Just Beginning

A Close Look at Dogecoin's Price Throughout 2014

newsbtc
newsbtc
4 years ago
1 min read

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Dogecoin is by far one of the most popular coins among cryptocurrency fans all over the globe. Since its launch in late 2013, dogecoin has been endorsed by a strong supporting community and innovative marketing efforts. However, a closer look at doge/btc price charts reveals that throughout the majority of 2014, the price of dogecoin has been declining.

The price of dogecoin topped up to over 250 satoshis in Febraury, yet it fell down to 50 satoshis in June and since then, it stabilized around 50-60 satoshis. The dogecoin market capital exceeded 80 million US$ early in 2014, but within less than 3 months it fell down to 40 million US$.

The reasons underlying the decline of dogecoin are not completely understood; however, many believe that dogecoin’s inflationary economic model is the main reason behind the price decline. Inflation leads to price decline, because holders of dogecoins believe that the 5 billion annual increase in the number of dogecoins can dilute their investments. Accordingly, coin holders would liquidate their owned coins rather than hold them for longer periods, which can drive the price down, despite coin holdings of loyal community members, who will continue to support the coin regardless of price decline.

Dogecoin supporters are optimistic about the expected Bitlicense, which will represent the first legislation ever to regulate cryptocurrency transactions. Bitlicense can attract the world’s attention to the market of cryptos and virtual currencies, which can push the price of dogecoin to the moon in 2015!

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Comments 1

  1. me says:
    11 years ago

    the farthest thing from a “close look”. stupid clickbait

    Reply

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Comments 1

  1. me says:
    11 years ago

    the farthest thing from a “close look”. stupid clickbait

    Reply

Leave a Reply Cancel reply

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