Yesterday one of my friend sent me some dogecoins, so out of curiosity i started digging information about how this coin work and how it is different from others as it is my first interaction with this Crypto-asset.
I found some interesting information regarding how it's origin is based on a popular internet meme and it's community active participation in various charity works and even in helping their fellow mates who lost their dogecoins in a cyberattack through various crowdfunding efforts, which is indeed appreciable.
If we specifically talk about speed of transactions - i have to say dogecoin is indeed fast. But the thing which caught my attention is there is no limit to its suppy, which means it is present in infinite amount.
Till today more than 100 billion dogecoins are in circulation. With as of today Oct-23-2017 , 1 DOGE = $0.00101075 .
We have been taught about price-supply-demand things in school , in simple terms a price of an asset will depend on demand in market and its suppy - if supply of an asset is more than demand price falls and if supply is less and demand in market is more then price of an asset increases. So we can relate this to the continous BTC price increase as demand for bitcoin is more and supply is limited which increases it's value.
Comming to the fact that dogecoins have no limit of supply i hardly think it can ever become an investment asset or a stable currency ever. I see some people on twitter who are investing in alt coins see it as an long investment on which i completely disagree.
If we want to see doge coin really succeed , here are my views what the developers should seriously take note of:
1. Limit its Supply:
More than 100 billion doge coins are in circulation with market cap of approx. USD 13.5 MIL . 100 billion is a big number and it's always increasing so unless community decide to limit it , i donot think it can attain any significant value in longterm.
I think, one of the reasons why dogecoin was once a big hit at some point is that people tend to go with the flow. It was once a trend and people love going along with latest trends. They got hyped with this altcoin, which is actually just a meme coin. Dogecoin is one of these trends, and was a victim of trend makers. If dogecoin is a person, I will compare it to a ONE DAY MILLIONAIRE who became popular in just a short period of time.
Also, you are right that the total number of circulating supply is too big. Going back to the basic concept of economics - The Law of Supply and Demand, a high supply of a product and low demand will lead to decrease/fall to its value. Dogecoin is not a popular nowadays, and it's not a surprise that its price has drastically fell in the course of time.
2. Ok if we limit it - what will we do with existing coins?:
Solution to above problem is quite simple. We just need to publish a new Crypto-token or currency which will derive it's value from previous currency in circulation. For Ex: Let the new currency be called Super Dogecoin denoted by S-DOGE. As per our convenience we can set it's base value like 1 S-DOGE could be equal to 1000 or 10K or say even 100k DOGEs . So not just it will decrease the numbers of coin but will also hold significant value. And this new currency could also be listed to the exchange if needed.
Thank you.
In my opinion, creating a sub-coin or new coin derived from dogecoin will make any change in dogecoin's value. There's already a lot of new tokens out there, and people will prefer to choose those projects with whitepapers than this dogecoin-cloned altcoin. Other than trying to revive the value of dogecoin, there's no other clear reason (at least, for now) to create new coin from dogecoin. Creating a coin from a meme coin is not a good idea.