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Why is Dogecoin rising so fast (Why is Dogecoin rising so sharply)

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Why is Dogecoin rising so fast? In the past few months, Dogecoin has risen by ov

Why is Dogecoin rising so fast (Why is Dogecoin rising so sharply)

Why is Dogecoin rising so fast? In the past few months, Dogecoin has risen by over 260%. This is due to a series of recent activities launched by the Dogecoin community and the recent historical high after the price of Bitcoin broke $40,000, exceeding $5,000 so far.

So, what is the reason for the popularity of Dogecoin?

Firstly, Dogecoin is very different from other cryptocurrencies such as Ethereum: Ethereum is a blockchain-based technology that creates an interoperable peer-to-peer electronic cash system; Ethereum is one of the blockchain-based payment protocols that allow anyone to send and receive encrypted assets (usually including BTC, ETH, and other digital tokens), not just transactions within the Ethereum network. Therefore, smart contracts allow users to transfer their funds to specific addresses through smart contracts. In addition, decentralized applications (dapps) on Ethereum are also affected.

Secondly, historically, people always want to have a novel technology or product – the emergence of this technology brings a new field – a decentralized financial system – and these innovations are changing the finance industry and business models. However, as the price of Bitcoin continues to rise and its market value expands, this issue becomes more important, as this emerging technology is referred to as “non-fungible inflation”. And there are many reasons behind this statement:

1. Bitcoin has built-in functionality but has no intrinsic utility.

2. Due to its anonymity, holders can easily obtain some form of cryptocurrency as a reward or savings.

3. When users want to buy certain types of cryptocurrencies, they choose not to sell. If they want to convert it into fiat currency or other encrypted assets and store it in their cold wallets, they need to provide some additional fees. If they believe they cannot control their private keys/passwords or even have no security measures, they will lose its value.

So when investors consider investing in altcoins, they often prefer Bitcoin to other encrypted projects such as Ethereum. However, when asked why Bitcoin can quickly develop into a mainstream cryptocurrency, many people say, “I do like it,” because it was created by a group of talented people.

Lastly, there is another factor that contributes to the main reason for Bitcoin’s volatility, which is that due to its scarcity restriction, many people view it as a speculative tool, so they tend to hold fewer cryptocurrencies to participate. Despite the existence of such risks, such as Bitcoin experiencing a long bear market cycle in recent months, in fact, Bitcoin is still the cheapest, most liquid, and best-performing thing in the market.

In summary, the word “Doge” actually vividly expresses his optimistic attitude towards the future of Bitcoin. He believes that Bitcoin can not only solve the current market downturn but also help improve the entire world.

Why is Dogecoin rising so sharply

Why is Dogecoin rising so sharply? At 4:30 pm today, Dogecoin suddenly surged more than 20%. According to coinmarketcap data, as of now, DOGE is priced at $0.049, with a 24-hour increase of 16.98%, ranking third among all cryptocurrencies. The value of Dogecoin is mainly reflected in two aspects:

1. Its community is decentralized;

2. It has no ICO and no other form of equity or token issuance;

3. It is a completely decentralized and custodian-free investment method;

4. It is the first thing to truly use blockchain to prove its scarcity. All of this is determined by the community: how many Bitcoins and Ethereums they own, and why they are popular.

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