Crypto.IQ Altcoin Scouting Report #1: Dogecoin (DOGE). The Crypto.IQ Altcoin Scouting Report deep dives altcoins which have the most potential, in the same way, that baseball scouters thoroughly investigate the minor leagues to find major league caliber players. It is a difficult task for prospective altcoin buyers to sift through the thousands of different cryptocurrencies, but fortunately the Crypto.IQ Altcoin Scouting Report makes this task much easier by showcasing the altcoins which are the most active, unique, fundamentally useful, and decentralized.
The price of Dogecoin (DOGE) has risen from $0.02 at the beginning of January to as high as $0.0035 on February 8, simultaneous with the Dogecoin (DOGE) market cap climbing from $244 million to $430 million, a gain of $186 million. Since then the price of Dogecoin (DOGE) has leveled off a bit to $0.003 but is still up 50% so far in 2020, and the market cap is still up well over $100 million. Essentially, Dogecoin (DOGE) is in the midst of a rally, and this article will detail why this rally is happening, in addition to deep diving the fundamental characteristics that give Dogecoin (DOGE) solid long term potential.
The current Dogecoin (DOGE) rally is part of a broader Bitcoin (BTC) and crypto space rally, which has been sparked by fears that the economy will slow down. In particular, the Coronavirus, periodic geopolitical tensions with Iran, and speculation that the debt and equities bubbles will finally pop has driven investors to buy Bitcoin (BTC) and some major altcoins as an economic hedge, i.e. safe haven.
That being said, Dogecoin (DOGE) has gained value even faster than Bitcoin (BTC), with the price of Dogecoin (DOGE) relative to Bitcoin (BTC) rising from 28 satoshis to 30 satoshis. In other words, Dogecoin (DOGE) has gained 7% relative to Bitcoin (BTC), which is especially impressive when considering how strong the Bitcoin (BTC) market is, with Bitcoin (BTC) rising 40% and gaining roughly $2,800 since the beginning of the year.
It may seem surprising that Dogecoin (DOGE) has been gaining relative to Bitcoin (BTC), but it makes sense considering Dogecoin’s (DOGE) solid fundamentals, which will be discussed in the rest of this article.
Dogecoin Is Completely Decentralized, Unlike Most Other Top Altcoins
First off, Dogecoin (DOGE) is completely decentralized. There is no Dogecoin (DOGE) premine nor developer fund, which makes the Dogecoin (DOGE) market much healthier than some of the other altcoins which have to deal with centralized dumping due to premines and developer funds being cashed out.
Also, Dogecoin (DOGE) operates via Proof of Work (PoW) mining, and therefore Dogecoin (DOGE) is secured by a decentralized network of miners and nodes across the world. This high degree of decentralization ensures that Dogecoin’s (DOGE) code cannot be changed without a mining consensus, and transactions nor wallets can ever be frozen, seized, or reversed by a centralized authority.
Zooming out, cryptocurrencies like Dogecoin (DOGE) that have no centralized authority, no premine, and are guaranteed to be centralized via PoW mining, have become quite uncommon in the crypto space. Indeed, out of the top 31 cryptocurrencies on CoinMarketCap, only Bitcoin (BTC), Litecoin (LTC), Monero (XMR), Dash, and Dogecoin (DOGE) fit these criteria.
Dogecoin Is A Top Choice Among Scrypt Miners
The second fundamental factor that gives Dogecoin (DOGE) value long term is its active mining community. Numerous Scrypt miners still prefer Dogecoin (DOGE) over other Scrypt PoW cryptocurrencies.
Indeed, the Dogecoin (DOGE) hashrate is roughly 150 TH/s. This is just below the Litecoin (LTC) hash rate of 170 TH/s, likely because Dogecoin (DOGE) can be merge mined with Litecoin (LTC), meaning miners can mine both cryptos simultaneously using the same work.
Essentially, practically everyone who mines Litecoin (LTC) chooses to mine Dogecoin (DOGE) as well, because merge mining Dogecoin (DOGE) increases profits.
Thus, Dogecoin (DOGE) has a healthy mining community, ensuring the security of the network long term.
Dogecoin’s Community Is Known for Tipping and Is a Friendly Gateway to the Crypto Space
The third important fundamental factor that helps prop up Dogecoin’s (DOGE) value is the highly active community, particularly on r/dogecoin where there are 148,000 members and hundreds to thousands of people online at any given time.
The reason Dogecoin (DOGE) is so socially popular is that members of the Dogecoin (DOGE) community often give each other Dogecoin (DOGE) tips, whether it’s for posting helpful information, winning a contest, or just random acts of kindness.
Indeed, Dogecoin (DOGE) is an optimal cryptocurrency for tipping, since transaction fees are practically zero and it is easy to tip lots of Dogecoins (DOGE) even for small amounts of money. A $1 tip would be over 300 Dogecoins (DOGE), making that dollar tip feel much more significant and fun, as opposed to a $1 Bitcoin (BTC) tip which would be 0.0001 Bitcoins (BTC), which feels like practically nothing. And if someone tried to use $1 of Bitcoin (BTC) it could easily be wiped out by transaction fees. In other words, Dogecoin (DOGE) is ideal for micropayments, which led to the tipping atmosphere that surrounds it.
Dogecoin (DOGE) tips foster a sense of goodwill, friendliness, and fun in the Dogecoin (DOGE) community, unlike Bitcoin (BTC) and other major cryptocurrencies where discussion is usually serious and business-oriented. Although it is good to dive into the serious business side of the crypto space, the Dogecoin (DOGE) community is much more ideal for new crypto users.
Basically, Dogecoin (DOGE) can be considered the friendly gateway of the crypto space. Indeed, on r/dogecoin users can learn how to use their first wallet, trade on an exchange for the first time, and mine for the first time, while simultaneously being incentivized and motivated by Dogecoin (DOGE) tips.
Because of this, Dogecoin (DOGE) has fundamental strengths including being one of the only fully decentralized cryptocurrencies. It is also a top choice among Scrypt miners, which ensures security and having one of the friendliest and most welcoming communities in the crypto space.
Dogecoin (DOGE) is a good choice for anyone who is looking to diversify their crypto portfolio since it will likely continue to gain value and remain a top altcoin long term thanks to its fundamental strengths.