Three reasons not to buy Dogecoin in 2023

Dogecoin had an incredible price rally over 150% back in late October.

The reasons, of course, were linked to Elon Musk. The Dogecoin price pumped at precisely the moment Musk walked into the Twitter HQ as its new private owner. 

Fast-forward two months and Dogecoin has erased all its price gains. 

Will Dogecoin breakout in price again in 2023?

Here are three reasons not to buy Dogecoin.

#1 – Dogecoin is pure speculation

Dogecoin has no use cases. The Twitter integration hype was based on pure speculation – though Musk has Tweeted about using Dogecoin on Twitter, he's never made any promises or announced any dates for it.

With Binance a major investor in the Twitter takeover, there's every chance that a blockchain network and payments provider like Binance gets the prize.

There's a slim chance that Dogecoin could be used as a form of alternative payment on Twitter. 

But there's also a big chance it won't.

If the latter is the case, then your Dogecoin investment has no clear signals it's going anywhere. Since the days of Benjamin Graham's The Intelligent Investor, no investment professional has ever recommended buying stocks and shares and currencies based on pure speculation alone.

#2 – Dogecoin is inflationary 

It's true. A total of 5 billion DOGE is added to supply each year. 

Inflation affects the Dogecoin price long-term. In the next 12 months, the DOGE price will fall over 3% if the market cap remains the same. Long-term the effect of inflation will keep Dogecoin price stable at best – and, in fact, this is why Elon Musk likes Dogecoin. A crypto with a stable price means more people would be willing to buy and sell it, rather than hold it.

Compare Dogecoin inflation to fixed-supply currencies like Bitcoin, or the current leading hyper-deflationary token in crypto: EverGrow.

EverGrow is on track to burn 10-20% of its supply in the next 12 months. This could make prices rise 21% even if the market cap remains the same. Add to that a crypto ecosystem helping thousands of users extra passive income through an NFT marketplace, a crypto content subscription app, and a play-to-earn gaming metaverse experience – EverGrow has both use cases and a deflationary nature.

While Dogecoin has popularity, its structural limitations (it was built in about three hours as a joke) may start to weigh on it in 2023.

Read more about EverGrow here: https://evergrowegc.com/

#3 – Dogecoin can't interact with smart contracts

Dogecoin faces other limitations besides inflation.

The Dogecoin blockchain can't interact with smart contracts. Smart contracts are the building blocks of decentralised finance (DeFi) and NFT applications, and without them it's hard to integrate Dogecoin payment systems and apps.

For example: an integration into Twitter would be tough.

While there's a lot going for Dogecoin in 2023, a majority 71% of industry experts surveyed by Finder.com urged investors to sell their Dogecoin. Lack of use cases and limitations were the key reason experts were not backing Dogecoin in 2023.