|1 DOGE||1K DOGE||100K DOGE||1M DOGE|
|At current DOGE price|
|At LTC-parity DOGE price|
|At BTC-parity DOGE price|
What is the BTC parity number?
This is an estimate of how much DOGE would be worth if it were as well-known, as widely accepted as payment, as trusted, and as easily converted into traditional currency as BTC.
It is NOT a prediction of future price. We don’t know what DOGE will be worth in the future, and neither does anyone else.
The same concept applies to LTC parity.
But what is parity really, how do you calculate it?This is going to get slightly technical, feel free to skip it unless you want to know EXACTLY how the numbers work:
Parity is equality in value. For our purposes the question is: “How much would DOGE be worth if it became as popular as BTC or LTC?” We cannot answer the question by simply equating BTC unit price to DOGE, because there will be 100 billion DOGE mined, and only 21 million BTC mined when all is said and done. We need to adjust the price for the difference in number of coins currently mined, and the potential maximum number of coins mined, for each currency.
To get to our answer, we use market capitalization. The market capitalization of a cryptocurrency is the number of units of the currency mined, multiplied by the dollar value per unit. For example, when we multiply the price of BTC in USD by the number of BTC in existence, we get the market capitalization for BTC in USD. To get the parity of BTC to DOGE, we simply set the DOGE market cap at the BTC market cap, and adjust for the number of DOGE issued.
Update: Some time after the introduction of Dogecoin, it was announced that mining will not stop after 100 billion coins, as originally intended. Approximately 5.2 billion new coins will be mined annually after the 100 billion mark is reached. This is so in order to support DOGE transaction speeds and make up for lost coins.
The additional mining generally means that the numbers above over-estimate the value of Dogecoin at parity with BTC and LTC, which are limited to 21 million and 84 million coins, respectively. On the other hand, it may encourage new users and help keep DOGE popular.