Importance of economic indicators in the evaluation of Dogecoin (dog)
Dogecoin, a decentralized cryptocurrency and a symbol of memes, has drawn attention to investors and passion. While its value can fluctuate wildly, it can help you understand the basic economic indicators to buy or sell Doge.
What are the economic indicators?
Economic indicators are values that provide information about health, growth and stability of an economy. You can be quantitative (e.g. GDP, inflation rate) or qualitatively (e.g. interest rates, trust the consumer). By analyzing these indicators, investors can better understand the general direction of their investments.
Why analyze economic indicators in Dogecoin?
The value of Dogecoin was addictive, the prices between $ 0.01 and over 700 US dollars. In order to evaluate Doge’s growth or decline potential, you must examine the economic indicators. Some important factors must be taken into account here:
- GDP (gross domestic product) growth rate : A strong GDP growth rate can indicate a healthy economy that can be implemented for higher demand for dogs, since investors are looking for stable and secure investments.
- Inflation rate : An inflation rate of over 3% can undermine the purchasing power of cryptocurrencies such as Doge, which makes it less attractive to some investors. Instead, a low inflation rate can attract more buyers.
- Unemployment rate : A low unemployment rate shows a strong job market that can promote economic growth and increase demand for dogs.
- The consumer trust index (CCI) : An improvement -CCI can indicate that consumers are more optimistic about the economy, which increases the demand for dogs.
- Interest rate : Interest rates can influence the value of cryptocurrencies such as Doge. Higher interest rates can reduce demand and lower prices.
Dowecoins economic indicators
In order to specifically evaluate Dotecoin, we have to examine current economic indicators:
- GDP growth rate (Q2 2020) : According to Cryptoslat data, DOGECOIN -BIP growth rate began with the fourth quarter of 2019. This indicates a growing economy and a potential request to Doge.
- Inflation rate (January 2020) : The inflation rate in the USA during this period was 1.7%. Although it is not directly comparable to the dog, this indicates that the economy is faced with a certain level of growth.
- Unemployment rate (Q4 2019) : According to the Glassdoor data, the unemployment rate in December 2019 was about 6%, which indicates a strong labor market.
- The consumer trust index (CCI) (Q1-Q2 2020) : The CCI has grown constantly with the first quarter of 2019, which indicates that consumers are optimistic about the economy.
Diploma
While Dotecoin’s economic indicators may not be as robust as those of traditional cryptocurrencies such as Bitcoin or Ethereum, you can provide valuable information about your growth potential. Analysis of these values and, taking into account other factors such as market feeling, trading volume and adoption rates, you can better understand whether Doge is a purchase or sales option.
recommendations
If you consider buying a dog, look for indicators that indicate an increasing economy and an increasing demand for cryptocurrency. Some specific scenarios to be careful are:
- A strong GDP growth rate (e.g. 3%+ from year to year)
- Low inflation rates (e.g. <1%)
- Improvement of the unemployment rate
- Consumer positive trust indices
However, if you consider the sale of Doge, concentrate on indicators that indicate a decrease in economic activity or increased uncertainty.