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Why You Must Have Dogecoin

As do all other buyable and sellable goods, Dogecoin has a price that fluctuates based on the supply and demand of the coin. These fluctuations make it possible to treat Dogecoin as an investment for future gain.

Understanding Supply
Supply is the amount of a good that producers are willing and able to sell across different prices.


Understanding Demand

Demand is the amount of a good that consumers are willing and able to buy across different prices.

Influences on Supply: Number of suppliers, expectations of future profit, technology, price of other goods, and intervention from the government

Influences on Demand: Number of consumers, expectations of future price changes, tastes and preferences, price of other goods, and consumer income

Relating economic principles to Dogecoin
Dogecoin follows the same principles as do other goods and services. It has suppliers (those whosell Dogecoin) and consumers (those who buy it). Changes in the supply and demand of Dogecoin affect the trade volume of Dogecoin and the price at which Dogecoin is traded. Let's take a look at a few examples:

- A new cryptocoin is created that is known to be very profitable. Crypto sellers decide to stop selling Dogecoin in favor of the other cryptocoin, decreasing the supply of Dogecoin. As a result, the price of Dogecoin increases, but the trade volume drops.

- A charity drive from the Dogecoin subreddit makes it onto national news and encourages people to start buying cryptocoins, including Dogecoin. The number of consumers increases dramatically, increasing the demand for Dogecoin. As a result, both the price and trade volume of Dogecoin increase.

- Someone makes national news by being the first ever person to become a millionaire through sales of Dogecoin. Other suppliers take note and decide to start selling more Dogecoin as well, increasing the supply of Dogecoin. As a result, the trade volume of Dogecoin increases, but the price drops.

- It is revealed on national news that Dogecoin is used in black market sales of illegal drugs. People's tastes in cryptocoins shift away from Dogecoin, decreasing demand. As a result, both the price and trade volume of Dogecoin drop.

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