Thank you very much for participating! I received two excellent questions from my followers in the Binance Square post, I want to first thank you because you are always reading my posts and that makes me happy, because the questions you ask give me the energy to keep researching 🕵️♀️🔍 for you, we learn from each other. There are many new projects that debut every day, but not all of them are reliable. That's why we need to be in constant research and learning; this is a very complex world. We need to stay very updated and attentive to every detail. So I invite you to continue learning together about this wonderful yet complex world of cryptocurrencies! We need to stay one step ahead, so don’t get discouraged. Let's keep building and progressing in this world, now getting back to the topic.
I wanted to answer them with the honesty and detail they deserve. Both concerns touch the nerve center of the debate about Dogecoin, the dreaded inflationary supply. Let’s break this down!
- To put it in context, I invite you to visit my article where I talk about DOGECOIN and ELON MUSK
🔸Concern 1 is not a question, just an opinion, and I wanted to clarify what was being said to me: "Dogecoin has potential but it doesn’t need more users; it has to reduce the flow so that its utility and value are sustainable without excessive creation of more!!"
Response to the concern:
You have a super strong and valid point. From the heart, logic tells us that for something to be worth more, it must be scarcer. And yes, if Dogecoin were like Bitcoin, a fixed supply would be ideal.
But here’s the difference: Dogecoin was not born to be 'digital gold'; it was born to be a fast and cheap medium of exchange. Currencies (like cash in countries) need a constant supply so that people don’t run out of them while using them.
That’s why the sustainability of DOGE is not whether it should change its code and be scarce, but whether it will manage to get people to love it and use it enough. We need that wave of adoption (payments in X, massive integration) to be so great that it absorbs, and even surpasses, the 5 billion new tokens created each year. If people use it non-stop, demand supports it. If usage slows down, inflation takes its toll. It’s a pure bet of faith and mass adoption.
Concern 2: "You raised a doubt I had; the more that come out, the less it costs, it’s trash!!! Thanks for the information."
Response to the concern:
It’s an undeniable economic principle: inflation dilutes us. If they create more and people don’t want it, the value of what we already have decreases.
The risk is annual dilution, yes. But the opportunity is that this project, backed by such influential figures, could become the currency of the Internet. If that use case is fulfilled, the functional value (the ability to pay for something instantly and cheaply anywhere) could be so great that it would far exceed the small annual inflation. It’s a high-risk, high-reward project where the key is not scarcity, but real and massive utility.
Keep commenting!… I’m reading you 👀👀
📌 Remember that patience and education are always our best strategy. This is not investment advice, always research!
What other cryptocurrency would you like us to break down with this approach for the next post? Let me know in the comments! 👇
SUPPORT ME WITH A LIKE ❤️ AND FOLLOW ME FOR MORE ANALYSIS!
For the investor Detective 🤣🕵️♀️🔍
