Dogecoin, rumours say it could go sky high tomorrow.
By: Something to do with Elon Reeve Musk. The initial amount of Dogecoin in circulation was 100 billion tokens, with a price of just a tiny fraction of a cent. It was designed in such a way that the circulating supply is not fixed, but continues to increase by approximately 5 billion coins a year, leading to a modest rate of inflation. This is fundamentally different to other coins like Bitcoin, which have what is known as a ‘hard cap’ - a fixed amount of coins in circulation (for $BTC this is 21million). These differences are intentional and give us an insight into the intended use of the coins. BTC’s value is derived in part by its scarcity, and it was intended as a store value (although this is still highly debated). Dogecoin on the other hand, was designed to be actively used and spent, hence the inflation rate. It’s initial use cases were tipping on Reddit and in-game micro transactions.