Critics argue Dogecoin lacks technological differentiation or scarcity mechanisms, making it purely sentiment-driven. Unlike Ethereum's smart contracts or Bitcoin's store-of-value narrative, DOGE offers minimal utility beyond payment transfer. However, proponents counter that money itself is a social construct, and community belief constitutes legitimate value. This philosophical divide creates polarized investment theses and unpredictable valuation models.
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Inflation offset legacy — Auction bonding helped counter DOT’s inflationary issuance (historically ~10%). With the new 2.1B hard cap and coretime burns, auctions’ deflationary role has evolved into a more sustainable burn mechanism.
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From a diversification perspective, stablecoins help reduce overall portfolio volatility. By allocating a portion of assets to stablecoins, investors can smooth returns and lower drawdowns during periods of extreme market stress. While stablecoins do not offer significant price appreciation, their stability can improve risk-adjusted returns when combined with more volatile assets such as equities or cryptocurrencies.
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