1. How is Dogecoin connected to the global money supply (M2)?
Dogecoin’s price often rises when the global M2 money supply increases, as higher liquidity pushes investors toward riskier assets like cryptocurrencies.
2. Why does rising M2 impact cryptocurrencies?
When central banks expand M2, more cash circulates in the economy. This extra liquidity reduces borrowing costs and encourages investment in assets such as Bitcoin and Dogecoin.
3. Can Dogecoin realistically reach $1?
Reaching $1 would require Dogecoin’s market capitalization to exceed $150 billion. This could happen only if global liquidity stays high and institutional demand rises sharply.
4. What role does Dogecoin’s inflationary supply play in its price?
Dogecoin continuously adds new coins through mining, increasing supply each year. To maintain or raise its price, demand must grow faster than this new supply.
5. What are the main risks to Dogecoin’s growth?
Global liquidity tightening, regulatory restrictions, and declining investor sentiment could all slow Dogecoin’s rise, even if M2 and other economic indicators remain strong.
