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Dogecoin seems to have a great use case due to its cheap price: bringing money in and out of exchanges.

Also, it tends to be very stable against Bitcoin because it priced in Satoshis, and there is only so much rounding up you can do with low amounts.

I do not think Dogecoin was intended for that use, but I see much worse in their list.



>Dogecoin seems to have a great use case due to its cheap price

What does the price per token have to do with anything? You can buy a fraction of a bitcoin, so I don't see how doge has any advantage over BTC here.


I see you downvoted my comment, but I think you do not understand the practical issues: there is a limit to the divisibility of Bitcoin : 1 Satoshi, or 0.00000001 which is easier to write as 1x10^-8

In Bitcoin, Dogecoin is priced in almost the smallest fraction you can divide a Bitcoin in: about 39 Satoshis, or 3.9x10^-7 BTC

You can indeed buy fractions of a bitcoin, but no smaller than 1 Satoshi. Even before you reach that hard limit, the issue with transaction costs make small amounts of Bitcoin "dust", that is not economically recoverable if the transaction cost is greater than the amount that could be recovered.

Most exchange are limited by their use of floating point precision: if the price of Bitcoin to another currency changes by less than 1 Satoshi, it will not be reflected in this crypto to Bitcoin price.

So Dogecoin/Bitcoin is more stable than another pair for which this division would be possible, simply because a 2% variation would mean less that a 1 Satoshi (0.02x39=0.78) 0.78<1 so Dogecoin/Bitcoin will not change for fluctuations of less than 2% around its current price.

Even better: there are something like 1.15x10^11 Dogecoins. If you buy in Dogecoins, you can buy things that would cost less than what you can price in Bitcoin.

So for sell/buy, Dogecoin brings you more arithmetic precision.

Simply because it is old (therefore ubiquitous on the exchanges) and also so cheap, I think the issues with floating point gives Dogecoin a bright future!

EDIT: and yes, many exchange seem to be using floating point to deal with monetary values. Maybe for database or frontend optimization? Anyway if you don't believe it, try to place 2 different order with the 2nd one different from the 1st one by 1 Satoshi, then see how it goes if they execute. Or look at their API and see what precision they advertise, and how by pure coincidence it seems to match limits that floating point would impose!


God I hope exchanges don’t use floating point math for anything, that’s literally dealing with money 101. If you can’t even manage to do that how can you be trusted with storing value? This is why God (and I use that term VERY loosely) gave us arbitrary precision arithmetic libraries. Kidding aside anyone who proposes using floats to track money is getting fired.


1 Satoshi is currently worth $0.000069, and transactions are being approved for as low as 2¢. So this isn't currently a big problem.

In the future, bitcoin could be extended to have more digits. Or perhaps this will be dealt with on a second layer. Lightning transactions could deal with sub-satoshi quantities.




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