Bitcoin vs Dogecoin- Here are the Differences to Know About

Bitcoin and Dogecoin
Jan 5, 2024 Reading time : 4 min

The globe has been steadily embracing the new digital or virtual currency industry, rising at an astounding rate for many years. However, as the crypto industry gains traction, numerous trading cryptocurrencies have arisen in the virtual money market that provides some incredible returns. 

When it comes to trading in bitcoin or other cryptocurrencies, you can choose to safely and securely deal with the transactions. Even though many individuals have started to invest in virtual currency, few people are aware of the differences between Dogecoin and Bitcoin and which is preferable. 

If you’re unsure which one to buy and which is the best, this site will offer you all the information you need to know about various cryptocurrencies. Read on to know further.

What is Bitcoin? 

Bitcoin is regarded as the most valuable cryptocurrency. Diving deep into history, Bitcoin reached a record value of over $65,000 per coin in April 2021. Countries are beginning to embrace Bitcoin as an official form of government money. Volatility and risk are inherent in all cryptocurrencies, and Bitcoin is the least hazardous of the several cryptos available. This is large because Bitcoin is more developed than the other varieties and is more widely recognized as a payment method. 

What is Dogecoin? 

Jackson Palmer and Billy Markus founded Dogecoin in 2013. Doge was established to satirize the plethora of altcoins that sprung out after Bitcoin’s meteoric surge. The Shiba Inu, a Japanese dog breed famous in social media memes, is featured on the coin. Dogecoin was selling at half a cent per coin by the end of 2020. Since then, Dogecoin has benefited from its most ardent admirer, Tesla entrepreneur Elon Musk.  

Key Difference Between Bitcoin and Dogecoin

#1. Purpose of the Cryptocurrencies

Each of these two cryptocurrencies was created to serve a certain function globally. This cryptocurrency was created as a spoof on the increasing popularity of Bitcoin, as well as the doge meme, which featured a charming Shiba Inu as the central character. While Bitcoin was designed for a more serious purpose, such as facilitating transactions or serving as a store of wealth, it was not intended to be used for these purposes.

#2. Market Capitalization 

The market capitalization in cryptocurrency plays the most significant role. Both in the case of Bitcoin and Dogecoin, the market capitalization is calculated by multiplying the coins by the current trading price. According to CoinMarketCap, the most valuable cryptocurrency is Bitcoin, with Dogecoin being within the top ten. Because traders prefer to congregate around the most popular cryptocurrencies, the number of transactions below the top 20 is dramatically reduced.

Among these two popular forms of cryptocurrencies, Bitcoin has proved to stand out from the crowd every time. As time progresses, Bitcoin is becoming more accessible due to the many acquiring and holding the money available on current programs such as PayPal and Robinhood.

#3. The Coinage Scandal

It is also important to observe how many coins may be minted in each cryptocurrency. Because of Bitcoin’s hard restriction on the issue, which is about 21 million coins, a large number of traders have chosen it as their digital currency of choice. However, if money continues to pour into Bitcoin, increasing demand for the cryptocurrency, this set cap effectively assures that the price of Bitcoin will climb over time. Although this is beneficial to traders, it will make Bitcoin even more difficult to use as money. On the other hand, Dogecoin has an endless supply, which is intended to be a humorous device in the joke. The fact that Dogecoin may be issued indefinitely seems to have not affected the currency’s meteoric rise in value in 2021. 

Final Words

Given that both Bitcoin and Dogecoin have advantages and disadvantages, it is impossible to say which is the superior cryptocurrency. However, there is a definitive answer to the question of whether Bitcoin or Dogecoin is the better choice for you.

Despite their price discrepancies, it’s crucial to remember that both Bitcoin and Dogecoin have provided significant returns for their investors at various points in time. Overall, based on either project’s pricing history, Dogecoin looks to be a more short-term investment for many, while Bitcoin appears to be a long-term investment for many. Many see Bitcoin as an alternative form of payment and Dogecoin as a store of wealth and who have gained from it in both situations.