Look at Dogecoin's (DOGE +5.55%) price chart, and you'll quickly realize just how volatile the cryptocurrency has been. It makes owning a growth tech stock look like a walk in the park. Nonetheless, the token has skyrocketed over the long term, generating massive wealth for bold speculators.
Even though the gains for some have been life-changing, I choose to stay away. Here are three reasons why I will never buy Dogecoin.
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Dogecoin doesn't solve a problem
The entire cryptocurrency market is valued at $3 trillion. Despite this being a significant size, it's easy to argue that the vast majority of these tokens don't solve a problem. In my view, Dogecoin falls into this bucket.
The crypto was launched in 2013 as a joke to Bitcoin. That's all there was to it. Unlike Bitcoin, which aims to be a superior monetary network than the current fiat system, Dogecoin's supply continues to expand with no cap. And it lacks the scale, network effect, and brand strength of Bitcoin.
To its credit, Dogecoin has lasted this long, and it now sports a market cap of $23 billion, mainly because there is a community of supporters behind it. This means that its price can primarily be driven by unpredictable hype cycles. But even these might be a thing of the past.
Dogecoin's price has tanked 48% in 2025 (as of Nov. 19). And it trades at a stomach-churning 76% below its peak from May 2021. This indicates that the market is starting to lose interest in this digital asset.
Dogecoin's developer community is tiny
In the world of cryptocurrencies, developers are a key stakeholder group. They help to maintain and push blockchain networks forward. Unfortunately, there are only 20 full-time developers working on Dogecoin. This pales in comparison to the 3,566 on Ethereum and the 789 on Bitcoin.
This adds to the previous point about Dogecoin not solving a problem. Developers don't really see the potential in the network. And because there are very few developers working on the Dogecoin blockchain, it dramatically reduces the likelihood that the crypto will introduce valuable real-world use cases to market. Consequently, Dogecoin will remain a tool for speculation, supporting the view that it's nothing more than a meme coin.
CRYPTO: BTC
Key Data Points
Bitcoin is the better choice
The third reason why I'll never buy Dogecoin is because Bitcoin is the only cryptocurrency that piques my interest. It's much more promising and safer to own. And it still presents significant long-term upside.
Dogecoin might have its bullish followers. But I'm not one of them.
