There are a lot of proven ways to build wealth, but few, if any, have delivered consistently better returns over the long run than the stock market. Stocks might not top bonds, gold, or housing every year, but they’ve performed far and away better than these other asset classes over the very long-term.
But over the past decade, the supremacy of equities has been called into question by the rise of cryptocurrencies. For instance, the world’s largest digital currency, Bitcoin, moved from around $1 per token to more than $64,000.
Yet, it’s not Bitcoin that’s creating the most buzz in the cryptocurrency space. Instead, it’s the so-called “people’s currency,” Dogecoin (CRYPTO:DOGE).
Seven reasons Dogecoin is the worst cryptocurrency you can buy
Why Dogecoin? Enthusiasts often point to its lower transaction fees, relative to crypto’s Big Two (Bitcoin and Ethereum), its increasing adoption, and the growing support of Tesla CEO Elon Musk, who frequently tweets about Dogecoin.
Unfortunately, all of these catalysts are misplaced or based on misinformation within the Dogecoin community. If you do any sort of digging on Dogecoin, you’ll find seven reasons to completely dump it or ignore it. Here’s a quick rundown:
- Dogecoin’s transaction fees may be lower than Bitcoin and Ethereum, but they’re considerably higher than Ripple, Nano, Ethereum Classic, Dash, Stellar, Bitcoin Cash, Bitcoin SV, and a long list of other coins. In other words, you’re not getting the full story.
- Dogecoin is handling about 50,000 transactions daily on its blockchain. At this rate is would take more than 38 years for it to handle as many transactions as Visa and Mastercard process, combined, in one day.
- It lacks meaningful utility outside of crypto exchanges. After eight years, Dogecoin has approximately 1,300 worldwide businesses that accept it.
- “Hodlers” are being diluted by the release of more than 5.2 billion Dogecoin annually. This might only increase the outstanding token count by 4.1% in 2021, but it’s been more than a decade since we’ve seen actual price inflation this high in the U.S.
- Elon Musk’s tweets are the primary catalyst. Think about this… your investment thesis is based on tweets from one person.
- Dogecoin is centralized. Around 100 addresses control two-thirds of all outstanding tokens.
- Every single bubble in history has eventually burst, and Dogecoin will be no different.
This trio of stocks makes for a smarter investment
Instead of throwing your money away with a baseless cryptocurrency like Dogecoin, you should consider buying into companies with tangible long-term growth prospects. The following trio of superior stocks have all the tools needed to put Dogecoin to shame.
If you think Dogecoin’s returns are impressive, wait till you get a closer look at what Warren Buffett’s company, Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B), has achieved since he’s been at the helm. Since 1965, Berkshire has averaged an annual return of 20%. That may not nominally sound like much, but investors who’ve been holding on for 56 years are up more than 2,800,000%!
One of the keys to Buffett’s success is playing the numbers game. Although recessions are a normal part of the economic cycle, downturns tend to last only a few months or a couple of quarters. By comparison, bull markets and periods of expansion often last many years. Berkshire Hathaway’s investment portfolio is chocked full of cyclical companies in the technology, financial, and consumer goods space. Buffett knows that if he’s patient, his strategy will pay dividends.
Speaking of which, another reason the Oracle of Omaha’s company is such a success is because it generates a boatload of income. Berkshire Hathaway should easily top $4 billion in dividend income this year, with the company’s yield on cost (i.e., its yield based…