Recently, the issue of infinite issuance of DOGE ($DOGE) has raised concerns among some investors. Let's take a deeper look at the essence of this issue.


DOGE indeed issues 5 billion tokens each year, averaging about 13 million new tokens added daily. However, we need to look at this issue from a more macro perspective. Currently, the circulation of DOGE has exceeded 150 billion, which means the annual issuance rate is only about 3.3%, and this ratio will gradually decrease over time.
From an economic perspective, an inflation rate of 2%-4% is typically considered moderate and healthy. The 3.3% issuance rate of DOGE falls right within this range. Therefore, this issuance mechanism may actually help maintain the stability of the coin's value rather than lead to its rapid depreciation.
More importantly, we need to compare the inflation rate of DOGE with the global economy, especially the inflation rate in the United States. If the global inflation rate is higher than the inflation rate of DOGE, then DOGE may actually appreciate. Conversely, if the global inflation rate is lower than the inflation rate of DOGE, DOGE may experience a certain degree of depreciation.
Considering the current global economic situation and the development trends of the cryptocurrency market, DOGE still has some room for development in the future. However, investors should act cautiously, fully understand the high-risk characteristics of the cryptocurrency market, and make informed investment decisions based on their own risk tolerance.
Overall, the issuance mechanism of DOGE does not necessarily lead to a continuous decline in its value. On the contrary, this mechanism may help maintain its function as a medium of exchange while providing stable growth potential for long-term holders.
DOGE6.19%
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GateUser-954f2c4fvip
· 08-08 01:49
Steadfast HODL💎
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