Dogecoin is becoming more popular as time passes by, and this has led to a serious fan following of the digital coin. People are searching for it on the internet and actually investing in it. And what just happened recently shows that how much attention Dogecoin is getting. A website of the Hello Pal international suffered a crash due to a server overload. And this happened after the company announced that it’s purchasing a part of the Dogecoin mining facility.
The website crash!
The increase in traffic for the website was too much to handle. As Hello Pal International announced, its mining facility purchase Dogecoin fans flooded their website. You may be thinking about how much the increase would have been? 1x, 2x, 3x…..No. The increase was about 10x the normal traffic, and everything expects their app crashed. This also shows the enthusiasm in the general public for crypto in general. The part of the mining facility purchased by the company contributed to about 35% of the entire DOGE hash rate globally.
As the price of Dogecoin continues to go up and down significantly, it seems that the contribution of Musk in its price has reduced. It is expected that the price of Dogecoin could increase by more than 10 times and even touch $1 dollar in times to come. Mark Cuban the owner of the Mavericks team also said the same about the cryptocurrency. But there is one catch to all this that is the sole nature of the coin.
Dogecoin is not limited by nature that makes it very difficult to be used as a hedge to inflation like many other coins. There is no limitation to the number of Dogecoins that can ever exist making it really difficult to push the price much higher. Till now the price of the coin has only increased on the base of hype created around it. Most of it was through Reddit groups and influential personalities like Elon Musk speaking about it. There is no actual fundamental backing of the cryptocurreny. So, even though the price might increase to even $1, investing in it is actually more of a gamble than an investment.
What are your thoughts on the price increase of Dogecoin? And were you one of those fans that led to the website crash? Let us know in the comments below. Also, if you found our content informative do like it and share it with your friends.