Topic: Why DOGE is so cheap, What am I missing?? - page 3. (Read 2614 times)

Yeah.  It is the time for crypto projects to evolve and be backed with something.  A business model, a commodity.. just something.  To me there's only BTC and LTC.  Those two are the ones worth holding.  The others, I like trading the momentum to acquire more BTC unless it is really backed with something.  An example of this is Cannabiscoin.  If they can pull it off, they could create a lucrative enterprise especially with the continued legalization of Cannabis in the states.  But we'll see.  It's nice to think about, and give support to.

I want LTC to be around as a safe haven coin in case shit happens with BTC.  Easy trades, storage and movement of funds.

edit:  And the volume is there to support big trades.

Too much supply, not much demand.  Community following can only go too far.

LTC and DOGE are very different and if forced to choose one or the other, I would choose LTC without hesitation.

I honestly think both LTC and DOGE are way overstaying their welcome as I really can't see any reason whatsoever that would warrant their current price. I'm curious though, why people think otherwise.

Dude I am sorry but DOGE is not cheap.
Honestly, it should be trading at 0.00000075 LTC.

I know exactly what you are missing, I too was as clueless until a few months ago and made similar mistakes.  It is the fundamental problem with most users in crypto.  Since they are not economists, they fail to grasp the core concepts of inflation and it's long and short term effects.  Additionally, these user's are young, very short sighted, impatient, and seek only instant gratification.  By only seeing what is in front of them at the given moment, they miss out on vast amounts of potential long term earnings and incur huge short term losses.  Perhaps, one or two may get lucky, but it's by pure chance.

I'll tell you why DOGE is 'so cheap' and you will hate the answer...  DOGE is designed/guaranteed to lose it's value over time.  It's a bad investment so miners just sell it as soon as they can.  In fact, DOGE is actually OVERVALUED.  Size and strength of the community doesn't change this truth.  By contrast, (dare I try to hijack this thread ) the 'other' coin I highly admire but do not hold much of (which starts with a 'Z' hehe), offers a better long term investment.  The same short sighted people dump it like it was DOGE not realizing the vast differences in it's economics.

Anyway... I have a load of DOGE (crap, pun intended!) that I purchased a while ago before I was any wiser.  I'm at a huge loss and don't expect to ever make that up.   I chose to invest in DOGE instead of 'other coin'.  Had my decision been based on facts instead of hype, I would be in a very good place today.

Oh! the mistakes we make!

What are you missing? I guess that the alt-coin market is largely irrational to give clone-coins any sort of market-value in the first place. Follow on questions/analyses are meaningless and futile.

The problem is that you are looking at this as if the cost of producing a product has anything to do with the price of a product. Cost is irrelevant. Supply and demand is king.

Imagine that it costs $100 to produce a hamburger. How many $100 hamburgers do you think that you could sell? Now imagine that you posses ALL the food in the world and Bill Gates is starving to death. I'll bet that that you could sell Bill Gates a $100 hamburger. Even if it only cost you 50 cents to produce.

When producing a commodity like oil, gold, silver, etc. ..., production stops or slows down when costs exceed income. Price only rises when the market raises the price. Crypto is the same way. Mining does have an effect on price, but it's a negative effect. Heavy mining tends to drive the price down because it increases the available supply. Then as prices drop, mining slows down and prices have an opportunity to go back up ( only an opportunity because demand must rise for prices to go up ).

It's unfortunate that the economics don't allow most people to mine many coins profitably any more, but mining is not dead yet. You just can't do it with coins like Doge any more.

Dogecoin is cheap, for sure, but it is relative.
To explain it better, there is another coin, I will not name it, just some characteristics:

1) The trade volume of coin used to be higher than Doge's one in 2014.
2) One of developers of this coin is a person on whose code Dogecoin was based.
3) There is an active community of this coin and this coin is not very much less known than DOGE, here on Bitcointalk, at least.
4) There is a good liquidity on Cryptsy.
5) It has much better name.
6) You can buy on Amazon, eBay, Overstock, Barnes&Noble, Groupon etc. with this coin.
7) Total supply is limited and year mining inflation is 5% only, pure PoW.

The market cap of this coin is under $200,000. Dogecoin's market cap is $19 mln.

The problem is: people don't invest in coins now. They would better buy an appartment in NYC than investing in Dogecoin, or buy a car than investing in above mentioned coin. You may tell them a lot, you may promote, people will not listen, will not buy - for the time being.
The boom will come a bit later.
We should wait and that is all.

I was one of the first miners for Doge coin back in late 2013 while I was working on the Marinecoin wallet, I had 20 MH GPU rigs huge scrypt hash back then and was very hard to mine DOGEs even back then, now the the Doge hashrate is over 1THs with the power of 3000 KNC Titan Asic Scrypt miners requiring 1700 Watt each and yet daily rewards total is merely 2,400 USD. not even close enough to cover electricity costs let alone the cost of manufacturing the rigs even if you had free electricty

You can buy entire days DOGE output for only for  2400 USD on the exchange, if you decide to mine that amount cheapest rig rental is 0.00045 BTC per MH per hour  would cost 45 BTC per hour x 24 hours = 1080 BTC cost per day to hire a rigs to mine a days supply of doge coin 240.000 USD, considering that many rigs are not available for hire it is also impossible to mine it if you were the richest man in the World.
 
Litecoin daily reward at 120.000 USD with just about the same hashrate.

Litecoin community pretty much doesn't exist, Doge community is by far the strongest and by far the most active same goes for their devs, usage of Dogecoin surpassed LTC and if a site accepts LTC it usually also accepts doge, same goes for exchanges, Doge in China is as big as BTC.

if a corporation decided to create a similar market awareness for anything it would cost 100s of millions in USD in just marketing yet entire Doge market cap can not buy a 5 bedroom apartment in NYC. and probably only could afford to get a 1 bedroom apartment in NJ if they really decided to sell their Dogecoins and get one.

Someone tell me what I am missing?

Marinecoin DEV