DOGECOIN’S PRICE TO INCREASE 10,000%+ IN THE FUTURE

I wrote an article titled “The Past and Future of Bitcoin’s Price”, and for this article will be applying similar concepts to analyze the future price of Dogecoin. Currently 1 Dogecoin is worth $0.000447, or $0.447 for 1,000 Dogecoins. The highest recorded price per Dogecoin was $0.00222 in February 2014 during a speculative bubble, and since then price has declined. However price has consolidated over the last month, and another bubble is possible in the near future. This article focuses on the longer term possibilities for Dogecoin’s price however, rather than short to medium term bubbles.

Currently the marketcap for Dogecoin is $35 million, roughly 0.6% of Bitcoin’s $5.7 billion marketcap. To put Bitcoin’s marketcap in perspective, DirecTV was sold to AT&T this past week for $48.5 billion. Thus, Bitcoin’s entire marketcap is worth about 10% of DirecTV. And DirecTV isn’t even among the most powerful corporations, Apple and Exxon Mobil have market caps near $400 billion as of 2013. This means all the Bitcoin in circulation is only worth 1.5% of Apple. And then you multiply 0.6% by 1.5% to get Dogecoin’s total value relative to Apple, which comes out to 0.0009%.

These statistics get even more drastic when you compare Bitcoin and Dogecoin to the gross domestic product (GDP) of countries. Dogecoin actually has a marketcap on par with the GDP of Tuvalu, which is a small island nation in the Pacific Ocean. Bitcoin’s marketcap is similar to the GDPs of Bermuda and Monaco, which are small but fairly wealthy nations. The United States has by far the largest GDP at $16.25 trillion, the entire marketcap of Bitcoin is only 0.03% of the United State’s GDP.

Bitcoin and Dogecoin are revolutinary technology. Now people can send money anywhere in the world instantly, securely, with almost no fee, and with complete anonymity. It is the first payment service in the world that is entirely between users, there is no 3rd party which has control, unlike when using your credit card. Cryptocurrency has rapidly expanded in reach and value over the last few years, and this is probably only the beginning.

If the marketcap of Bitcoin hit $100 billion, which is well within reason, each Bitcoin would be worth around $7500. If Dogecoin mantained the same value relative to Bitcoin, it would have a marketcap of $600 million and each Dogecoin would be worth $0.0076, or $7.60 per 1000 Dogecoins. This would be a 1700% profit relative to the current price.

Now to take it a bit further. If Bitcoin became a truly global currency, it may reach a marketcap of $1 trillion; still much smaller than the GDP of the United States. This would give a value per Bitcoin of $75,000, and a value per Dogecoin of $0.076, or $76 per 1000 Dogecoins. This is a 17,000% profit over the current price of Dogecoin.

The fiat currencies of the world are currently weak, due to central banks around the world printing trillions of dollars of currency to deal with the recent economic crisis. The U.S. monetary base went from $0.5 trillion to $4 trillion over the past 8 years. There is a currency crisis looming most experts agree, you cannot print that much money without severely devaluing the dollar, euro, etc. Gold prices have risen drastically due to this, since gold isn’t subject to currency printing, and therefore retains value when governments decide to print extra money. Bitcoin and Dogecoin are the same way, they can be mined, but not printed at will. This means during an economic crisis Bitcoin and Dogecoin will increase in value, possibly rapidly, relative to the USD and Euro.

The econimic crises of the future are likely to be the impetus for the drastic increase in Bitcoin and Dogecoin marketcap. Cryptocurrencies will be a safe haven for money when fiat money is in collapse. It won’t happen overnight, but over a long period of time as Cryptocurrency becomes more well-known and popular.

I am fairly sure we will see Bitcoins worth thousands of dollars each. A big question though is if Dogecoin will maintain at about 0.6% of Bitcoin’s marketcap. It is impossible to tell, the marketcap of Dogecoin could increase or decrease relative to Bitcoin in the future. However, Dogecoin has a strong community which is constantly growing, and is consistently near the top of the list for most valuable Cryptocurrencies. We shall see what happens to the price of Dogecoin, this article is merely speculation. My main point is there is plenty of room to grow for both Dogecoin and Bitcoin.