Every Dogecoin (DOGE) holder is keeping their fingers crossed. The recent price surge has brought the fun backed coin to the limelight. However, the question is whether to cap Dogecoin supply or not? Will the coin limited supply make it more valuable or should it remain uncapped?
Putting a cap on Dogecoin will mean its supply will be limited. This will make it scarce just like the digital market leader, Bitcoin (BTC). However, limiting the coins in circulation will increase its value and this will benefit a few holders. Growth in value is every crypto investors dream but it increases transaction costs among other downsides.
Why Cap Dogecoin Supply?
The interest around Dogecoin (DOGE) continues to elicit mixed reactions on social media. The debate on the coin has seen a clear divide between the supporters of the canine themed cryptocurrency. After the Elon Musk tweets, the coin price skyrocketed with many investors taking keen interest in the meme themed digital asset.
Shibetoshi Nakamoto who goes by the Twitter handle @BillyM2k has added a voice on how to make DOGE better. @BillyM2k is Billy Markus the co-creator of Dogecoin and he appears to oppose the notion of imposing a cap on Dogecoin and goes on to say:
If you are asking for a supply cap for Dogecoin, you are asking to make the currency worthless. The 1,000 coin per block subsidy is what keeps it functional, secure, with low transaction fees. If you want an insecure and worthless coin, keep asking-otherwise, educate yourself.
Cap Dogecoin Supply Implications
To cap Dogecoin supply has various implications and will suit different users differently. DOGE Hodlers will benefit if the coin total supply is capped. As adoption grows, DOGE whales will increase and these will determine the direction the price takes at their own convenience.
Secondly, despite being a fun coin, Dogecoin is designed for the masses. It is one of the best entry point digital assets out there. Putting a cap on it means it will soon get out of reach for the masses. According to Elon Musk, the coin has been taken over by a few individuals who control large amounts limiting its circulation.
Reaction to Cap Dogecoin Supply Tweet
In response to Nakamoto (@BillyM2k) tweet, another twitter user and Dogecoin supporter; Dogeman (Robert Patrick) goes on to add:
The problem is that this is democracy, we the people decide what we want, your opinion of the cap is not our opinion, and we know capping it will increase the value and it will be better for all of us, this is not a little game like you think this is, we want to make Dogecoin real DCEMK.
In his reply, @Bill6Mk2 advises the Dogecoin community to go for a fork so that users can put their money where their mouth is. However, GoodShibe @GoodShibe cautions users that a false DOGE scarcity will not increase the coin holder wealth but will instead make early adopters or hoarders richer.
To cap Dogecoin supply will work well for those holding substantial DOGE coins. However, for adorers anticipating to become adopters, an increase in value will keep them waiting longer. This will also mean the digital asset will become scarce and transactions cost will also go up.