Forget Dogecoin: These Tech Stocks Are Better Buys Right Now
Cryptocurrencies have generated lots of headlines recently. These digital assets don't have business plans and don't generate cash profits like regular businesses aim to do, which makes it impossible to find a fair value for them. But it doesn't take much of a news item to drive some cryptocurrencies much higher in a hurry. The meme-themed cryptocurrency Dogecoin (CRYPTO: DOGE), for example, has surged nearly a hundredfold in 2021, from less than half a penny to roughly $0.42 per token.
Many Dogecoin owners see the token as an easy way to get rich quickly. That's more like gambling than investing, especially since Dogecoin comes with some unique market risks. In particular, sector leader Bitcoin (CRYPTO: BTC) will never have more than 21 million tokens on the market, and runner-up Ethereum (CRYPTO: ETH) caps its annual generation at 18 million tokens. Dogecoin has no such limits, with a circulating supply of 129 billion tokens today.
It's not surprising that younger people, in particular, are attracted to cryptocurrencies. They view digital assets as a way to get rich quickly, which is really nothing more than gambling. This could end badly for carefree speculators, given the volatile and unpredictable nature of even the largest and most serious cryptocurrencies.
Source Fool.com
