How does Dogecoin's uncapped supply affect its price compared to Bitcoin's limited supply?

How does Dogecoin's uncapped supply affect its price compared to Bitcoin's limited supply?

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Dogecoin's uncapped supply, which means new coins are continuously minted, fundamentally differentiates its economic model from Bitcoin's finite supply and has a significant impact on its dogecoin price dynamics. Bitcoin, with its hard cap of 21 million coins, is often seen as a deflationary asset, where scarcity theoretically drives up value over time, especially with consistent demand. Dogecoin, on the other hand, issues 10,000 new coins every minute, leading to an inflationary model. In traditional economics, continuous supply increases without corresponding demand typically lead to depreciation of value. However, for Dogecoin, this inflationary pressure is often offset by its immense popularity and speculative demand. While the uncapped supply might limit its potential for long-term scarcity-driven appreciation, it also allows for lower transaction fees and easier accessibility, contributing to its "people's currency" appeal. The balance between continuous new supply and sustained, often meme-driven, demand dictates its price trajectory, making it unique in the copyright landscape.