Mark Cuban Defends Dogecoin’s ‘Infinite Supply’ – But is DOGE a Good Investment
Dallas Mavericks owner Mark Cuban defended Dogecoin inflation this week.
Responding to a Tweet from CoinDesk, the Shark Tank investor and long-time Dogecoin fan said:
“It’s the fact that Dogecoin creates 5b a year that keeps the per coin price low, which makes it more accessible. This is exactly why people will buy physical products with Dogecoin and not with BTC and rarely with ETH. It’s hard for someone with $100 to get excited about owning a fraction of BTC or ETH – it’s easy with DOGE.”
Cuban’s comments match Elon Musk, who in February praised ‘inflationary’ Dogecoin as it was this that separated DOGE from Bitcoin.
Back in February 2021, Elon Musk said Dogecoin was not ‘meaningfully so’. In a podcast interview in 2022 Musk again noted Dogecoin inflation but said that it helped DOGE to keep a ‘stable price’.
Curiously, Dogecoin co-founder Billy Markus has said that he constantly gets contacted by Dogecoin fans urging him to reduce the supply. Either that, or to change the Dogecoin code and make it deflationary. This is all because Dogecoin inflation helps to keep prices stable – which goes against the reason many people invest in DOGE.
Is Dogecoin inflation a good thing for investors?
First up, the bad news.
Some 5 billion Dogecoin enters the supply each year. What this means for investors is that a $1 price every year requires $5 billion more investment to reach. Whereas a $1 DOGE needed a $130 billion market cap last year, next year this will be over $140 billion.
This contrasts dramatically with fixed-supply tokens like Bitcoin, and hyper-deflationary tokens like EverGrow.
EverGrow for example is becoming famous for burning almost 1% of its supply in a single month. This puts EverGrow on track for a $1 price likely before Dogecoin – even though EverGrow is worth $0.0000001 today.
You can read more about EverGrow here.
Now for the good news. Because Dogecoin is inflationary, it should keep a more stable price than Bitcoin or EverGrow. This helps because it’s not expensive to own a few DOGE, and there’s not the worry that your DOGE could shoot up in price like Bitcoin and you kicking yourself you didn’t hold on longer.
In other words, if you love Dogecoin because you dream of the day crypto is used as an alternative to fiat – great!
But if you love Dogecoin because you’re expecting it to hit $1 and then $1,000 per DOGE like Bitcoin, you’re probably in the wrong coin.
Share This Article
Do the sharing thingy
About Author
More info about author
