Dogecoin is a successful investment?

Dogecoin emerged in 2013 as a joke. It was created by Jackson Palmer and Billy Markus to satirize the growth of altcoins by making the doge internet meme into a cryptocurrency. While it was birthed as a joke, it actually led to some practicality as its large supply and low price facilitated efficient micro-tipping content on social media. It is a derivative of Luckycoin which forked from Litecoin and uses a Scrypt algorithm. Dogecoin has 1-minute block intervals making it faster than other blockchains. There is no cap to the supply of coins and thus the coin can inflate infinitely.

Reason to Invest in Dogecoin and Reasons Not to Invest in Dogecoin

So far, Dogecoin has had an incredible year. Its price has risen nearly 700 percent in the last month alone. As of this writing, it has increased by more than 8,500% since the beginning of the year.

It's difficult to ignore such returns, and many investors are rushing to join the cryptocurrency bandwagon in the hopes of making a fortune. Although it is possible for some investors to make a lot of money with Dogecoin, it is also possible for others to lose a lot of money.

Why should you invest in Dogecoin? You have some extra cash and are willing to take a chance with it.
If you had spent $1,000 in Dogecoin on January 1, 2021, you would now have around $85,000. Since cryptocurrency has become so volatile in the past, it's anyone's guess how big the price would rise. By saving now, you might be able to make some money if you're lucky.

Keep in mind that there's a lot of Risks

Why should you avoid Dogecoin?
1. The fundamentals are weaker than those of other currencies.

There are several different forms of cryptocurrencies, and it's easy to mix them up and conclude they're all the same. Investing in Dogecoin, on the other hand, is not the same as investing in a more developed digital currency like Bitcoin.
In 2013, Dogecoin was created as a joke. It has made real gains since then, but it is still not as solid as other currencies.
The fact that there are only 21 million Bitcoin tokens available, for example, is one of the reasons why investors are drawn to it. Bitcoin's value rises due to its small availability, and some analysts refer to it as "digital gold." Dogecoin, on the other hand, has a total supply of 129 billion coins. Since there are so many tokens available, their worth is diminished.
Furthermore, only a small percentage of merchants consider cryptocurrency in general. Those who do, however, are more likely to support Bitcoin rather than Dogecoin. The development of Dogecoin would be difficult to maintain without widespread adoption.

Finally, there isn't much that distinguishes Dogecoin from its rivals. Bitcoin has the most experience and is the most well-known cryptocurrency, giving it an advantage. Ethereum (CRYPTO: ETH) is the second-most common cryptocurrency after Bitcoin, and its blockchain technology is used for non-fungible tokens (NFTs) and decentralised finance, giving it a leg up on the competition. Dogecoin's transaction fees are smaller than those of lesser-known cryptocurrencies like Litecoin, Nano, and Stellar.

All of this means that Dogecoin lacks a competitive advantage in the cryptocurrency market, making it difficult for it to expand in the long run.

2. The bubble is likely to burst soon.

All signs point to a bubble that will burst sooner or later, given that there is nothing about Dogecoin that justifies its phenomenal returns over the past few months (aside from celebrity endorsements and internet hype).
Dogecoin is similar to stocks like GameStop and AMC, which saw their stock prices skyrocket almost overnight despite the fact that their market fundamentals didn't merit such rapid growth.
Dogecoin's meteoric rise is largely attributed to retail investors hyping it up online, fuelled by celebrities like Elon Musk endorsing it on social media, similar to GameStop and AMC. It's just a matter of time before the Dogecoin bubble explodes, much like GameStop and AMC.

Though Dogecoin has the potential to become a serious player in the crypto space, it is more likely to crash and burn. If you have some spare cash and want to try your hand at investing for fun, it's not a bad idea to invest in Dogecoin — after all, you never know what could happen. However, there are a plethora of other investments that are much superior.