Although both are digital currencies, Bitcoin is different from Dogecoin. The reason is that Bitcoin was the first digital currency released in 2009 and remains the market leader today. Dogecoin or doge, on the other hand, is a meme coin that First published in 2013 and creeping up due to promotion from Elon Musk.
So between the two, which is better? Bitcoin or Dogecoin? Check out his comments below:
What are Bitcoins?
Bitcoin or BTC It was the first digital currency to issue BTC, released in 2009 by the pseudonym Satoshi Nakamoto, still a mystery.
By using this currency We can conduct financial transactions without the supervision of a central bank. Fees will be cheaper and more efficient methods This is because the card issuance is done in a decentralized manner. As a result of this promising innovation, the popularity of BTC rapidly increased and prompted the emergence of similar currencies. One of them is Dogecoin.
As the most popular crypto asset in the world, Bitcoin can now be obtained not only for mining. but also by other means such as buying from crypto exchanges. receiving it as a gift or selling games and other means
What is Dogecoin?
Dogecoin It is a meme coin published by Billy Markus and Jackson Palmer in 2013. The asset was originally created as a satire and mockery of speculation in the cryptocurrency market at the time. You can say that Dogecoin is the world’s first meme coin.
However, after a promotion from Elon Musk and the Gamestop squeeze in 2021, DOGE’s price has risen 800% and has become the highest-capitalized meme coin.
In addition to this growing popularity, DOGE is widely traded on the Internet. crypto exchange and is widely used to buy and trade other crypto products.
Difference Between Bitcoin and Dogecoin
1. Supply limit
The first difference between Bitcoin and Dogecoin lies in the number of coins that can be mined and can circulate in the market. In this case, the maximum amount of BTC is 21 million units, of which approximately 19.12 million bitcoins are already on the market.
This means that if the number of BTC mined reaches 21 million, traders will no longer be able to mine this asset and can only purchase it on crypto exchanges, although DOGE does not have a limit on the maximum number of coins that can be mined and circulated on the market.
This supply limit is important for traders and investors in crypto assets. The reason is that the existence of supply limits affects asset prices. In other words, the harder it is to find crypto assets. The more likely it is that the asset’s price will go up.
Some sources say that the reason Doge developers didn’t limit the number of units was because they wanted the asset’s price to not increase too much. However, the risk is that traders may not benefit much from this tool. (especially long term)
2. Mining process and advantages
In addition to the difference between Doge and BTC in supply limits The developers of these two digital assets also offer different mining processes and advantages accordingly. geekforgeek.orgHere are some differences in the process and advantages of mining Bitcoin vs Dogecoin:
- It takes no more than 10 minutes to confirm the opening of a new blog.
- Miners who can open new blocks will be rewarded with 6.25 BTC, this figure is expected to continue to decline following the Bitcoin Halving scheme.
- BTC uses the SHA-256 algorithm which is actually harder to modify and requires stronger power.
- It takes up to 11 minutes to confirm the opening of a new blog.
- Miners who can open new blocks will be rewarded with 10,000 Doge.
- The algorithm for mining Doge is comparatively simpler and requires a lower hash rate compared to BTC.
Dogecoin is developed voluntarily by developers. So the technology wasn’t much improved before Dogecoin Core version 1.14.6 was released last August. The last update of this coin happened in November 2021.
As a result, DOGE’s security level tends to be lower than BTC accordingly. geekforgeek.orgBitcoin transactions are public. Therefore, traders will find it difficult to create fake BTC or use BTC that is not theirs.
4. Asset distribution
Asset distribution is one of the key factors that traders and investors should pay attention to. The more power these people have, the more they influence price movements.
In this case, the distribution of BTC is even greater compared to DOGE, since as of June 2022, 97 Bitcoin addresses (traders or investors) control only 14.15% of the total BTC in circulation.
On the other hand, as of September 2022, there are 9 vendors with more than 1% DOGE. There is 1 user with 21.96% of DOGE in the market (Coincarp). which means no matter what the person does Will affect the price of DOGE in the market.
Bitcoin or Dogecoin which is better?
There are several factors you should consider when deciding whether to choose Dogecoin or Bitcoin. Some of these factors include:
- price. Until now, Bitcoin remains the most expensive crypto asset in the world.
- Potential for short-term and long-term profits. In the opinion of the author with unlimited supply The long-term potential of DOGE tends to be more uncertain than BTC, but with the supply constraints and halving of Bitcoin, there is a possibility that the price of BTC will increase in the future.
- security level.
- useTheoretically, if digital assets are widely used in daily transactions. The more acceptable the economic condition of the asset will be.
- developer quality.
- project done.
- asset distribution. As mentioned above The more ownership of the centralized assets, the more The stronger the asset owner’s influence on price movements, the stronger.
from the above limitations At least it can be concluded that the risks involved in investing and trading on Dogecoin are comparatively higher than Bitcoin, as Dogecoin’s level of security, use, supply and distribution are more susceptible to uncertainty than BTC.