Dogecoin Cryptocurrency Price Rise – What Drives Up the Prices?
Dogecoin is a form of virtual currency that has grown in popularity lately. It started out as a kind of joke among internet-savvy individuals who were trying to test the waters when it came to investing in virtual currencies. The joke was that anyone who had any money put into dogecoins would receive a special dog, thus defining the coin as a unique kind of virtual currency.
While it is true that no one will actually pay with doge Coins, the funny aspect of this story is that the value of DOGEUSD has risen sharply since the original joke, to the point where it is now the second most highly valued currency after the US dollar.
One reason the value of DOGE has been increasing is because it has a solid value proposition. Unlike traditional virtual currency, dogecoins are easy to buy and transfer. Also unlike traditional currencies, it has no standard rate of exchange. It is up to users to set their own rate, which may be influenced by factors such as supply and demand, although this kind of market has not yet developed to the degree that other currencies have.
As an example of how easily a virtual currency can be exchanged, think about online shopping. With popular sites like eBay, Amazon, and Macy’s opening up virtual stores on the internet, individuals no longer need to go into a brick-and-mortar store to purchase the items they want. Instead, they can simply make a buying decision on the internet and transfer the money directly into the merchant’s account. There is no physical product to carry, no need for a salesperson or check book, and no chance of leaving your house to make the actual purchase. This is how people are converting their interest in the dogecoin marketplace into actual dollars.
Another reason the value of DOGE has been able to increase so much is because it has established itself as a superior value proposition over time. Like gold, dogecoin is a physical commodity that is not tied to any particular form of government or central economy. Because there are no restrictions on how much of this virtual currency can be purchased or sold, there is no capped amount that can be spent.
Unlike gold, which can be manufactured and hoarded in large quantities, doge is generated by a system of automatic computer generated transaction that results in the transfer of one dogecoin from one recipient to another. This leads to an increase in its overall value as more units are added to the pool.
The great thing about dogecoin at https://www.webull.com/cryptocurrency is that it is one of the few coins that truly has no known physical source or underlying commodity. Unlike the United States’ gold standard, the value of this virtual currency is not tied to anything that can be manufactured or owned. This means that while it may seem like a good investment at the time, a few months down the road there may not actually be an actual market need to purchase more units since the trend continues to go in the opposite direction.