Should You Buy Dogecoin Under $1?

Core Insights - The price of Dogecoin (CRYPTO: DOGE) at approximately $0.16 may seem attractive, but this does not equate to a low valuation or a sound investment opportunity [1][3] - The focus should not solely be on price movements, as a significant increase to $1 would require a sixfold rise, which does not address the underlying issues of the asset [3] Supply Dynamics - Dogecoin has no supply cap, generating around 14.4 million new coins daily and approximately 5 billion annually, with a current circulation of 151.6 billion coins [4] - Continuous dilution of holders occurs unless demand grows faster than the issuance rate, raising concerns about the long-term value retention of the asset [5] Value Creation Challenges - There is no mechanism in place for burning coins to reduce supply, leading to potential dilution for holders over time [5] - The only hope for price appreciation lies in speculative market behavior, which is not a sustainable growth strategy [5] Future Considerations - For Dogecoin to transition from being a meme coin to a valuable asset, it would require increased utility and programmability, potentially through a Layer-2 (L2) network [6][8] - While there is a possibility for Dogecoin's price to exceed $1 or receive upgrades to enhance its utility, these developments are unlikely in the near term [7]