Dogecoin vs Bitcoin
A few years ago, there was only one cryptocurrency, i.e Bitcoin. If someone wanted to start working with a payment system created by a cryptographic method, then he could only use Bitcoin. Now there are many more of them. There are lesser-known projects on the market with relatively small capitalization, which large investors prefer to avoid. However, together with a small amount of capitalization, such cryptocurrencies often have an interesting idea and serious growth prospects. Doge with its personal currency DogeCoin (DOGE), which no one has taken seriously before, is one of these projects.
What is Bitcoin (BTC)?
Bitcoin (BTC) appeared in 2009 and it is a peer-to-peer, decentralized and anonymous cryptocurrency. All transactions take place directly between subjects on the p2p principle; there is no currency central governing body and emission centers such as a central bank; all transactions from one subject to another occur using cryptological (encrypted) keys that protect the transfer from the intervention of third parties.
There is no reliable information about its creator. Until now, many states considered it as a surrogate currency that has no future. Despite all that, it is becoming more expensive in price, and the number of users who have started using Bitcoins is increasing day by day. There are already many Internet sites where you can pay with this currency. For the most part, it is recommended to be considered as a tool for paying for goods and services, as well as getting rewards.
When Bitcoin was being created, the main idea was to make an analogue of gold and not analogs of paper currency. Gold is a limited resource. To get gold, you need to mine it. It takes the time of people who are directly involved in this process. Something similar is happening to Bitcoin. The number of “coins” is limited to 21 million. When the total supply of Bitcoins reaches this value, any further emission will be stopped to prevent inflation. And mining Bitcoins requires certain costs. If in the case of gold, human labor is spent on mining, then the “labor” of a computer is spent on mining BTC.
What is Dogecoin (DOGE)?
It is believed that this digital asset is a parody of a real cryptocurrency, which was created just for a joke. There is a legend that Doge was invented on the 4chan imageboard and was actively promoted by its users. The DOGE cryptocurrency is not just a dummy or some kind of fraudulent project with a funny image of the famous red-haired Shiba Inu meme, which is so widespread on the Internet, but a brand that has been steadily entrenched in the market with good growth prospects in the future.
The Dogecoin cryptocurrency was created back in 2013 by two programmers Jackson Palmer and Billy Markus. The developers took the Litecoin blockchain as the basis for the DOGE currency, making changes in the time between blocks, which is 1 minute (in the Litecoin network it takes starting from 2.5 minutes), as well as during the reassignment of the difficulty. As a result, having slightly tweaked the Litecoin code, the developers created a completely new digital asset with their own unique Blockchain.
What is the Difference between Bitcoin and Dogecoin?
First of all, Bitcoin vs Dogecoin differ in price and quantity. Bitcoin emission is limited to 21,000,000 coins, Dogecoin does not have such restrictions. Secondly, the low price of the DOGE allows carrying out transactions for small amounts with a negligible commission. Further, the Dogecoin is easier to mine, so you do not need heavy devices to mine coins. Weak computer parameters can mine a block, for which the owner of the computer gets a reward in the form of DOGE coins. And then, at its discretion, DOGE is exchanged for US dollars or other crypto coins.
And most importantly, the main component of Dogecoin is still its incomparable and extraordinary attractiveness. The cryptocurrency was created in an environment of educated and highly cultured citizens. These are supporters of unforgettable and respected traditions, or, more simply, “tips”, as vending and rather incomparable DOGE memes. As a cryptocurrency for many users, it is an extremely inexpensive analogue of Bitcoin. That’s the whole difference.
What is the similarity between Bitcoin and Dogecoin?
From a technical point of view, Dogecoin is notable only for the fact that it is very fast to mine: one block is created about 10 times faster than in the case of Bitcoin. Otherwise, it is just a clone of Luckycoin, i.e. which is a clone of Litecoin, and the latter in its turn is copied from Bitcoin. In fact it is an inflationary clone as there is no maximum amount of DOGE, there can be as many coins as you like.
BTC vs DOGE: price
Let’s have a look at DOGE vs BTC in terms of price.
The quotes of Dogecoin cryptocurrency are very susceptible to verbal intervention from large investors. Elon Musk, whose tweets raise Dogecoin quotes by 10-15% or more, is one of them. But Musk is not alone in driving the price of Dogecoin higher. Several companies announced this year that they would accept this cryptocurrency as an alternative means of payment. Among them is the American medical company CovCare. In March 2021, Mark Cuban, the owner of the Dallas Mavericks basketball team, told The New York Times that the club had begun selling tickets to its matches with Dogecoin. In May, California-based baseball club Oakland Athletics joined the Dallas Mavericks, offering fans a ticket for two people for 100 Dogecoins. The price jump was caused by the news that the popular online trading platform eToro would enable its clients to trade this cryptocurrency.
By May 2021, Dogecoin hit an all-time high of $ 0.7, with a market cap of $ 50 billion which was more than 20,000% growth over the year. After that a rollback began: interest in the coin subsided, traders began to take profits, so by mid-July 2021 DOGE rate slowly fell to the minimum of $ 0.16 but even this cost is ten times higher than that one which was fixed at the beginning of the year. And then the growth happened again, albeit it was not so impressive.
As of today BTC according to data from CoinMarketCap the price is equal to $57.43 thousand with the market capitalization of $ 1.08 trillion. The number one cryptocurrency is recovering after a record fall to $ 55.6 thousand on November 19 this year. Experts associate the recent anti-record with the news of a new stage in the fight against miners in China. In May 2021, the authorities completely banned the production of digital currencies in the country, and in November they announced the possible introduction of new punitive measures. The PRC may raise electricity prices for companies that continue to ignore the ban on mining the coins. The positions of Bitcoin and a number of other cryptocurrencies have noticeably shaken because of this, while Dogecoin almost did not depend on large players. This attracted the attention of investors and provoked an increase in the DOGE rate.
On November 10, 2021,Bitcoin also reached an all-time high, the cost of coins exceeded $69 thousand. Since then, the asset’s price has dropped nearly 14 percent. Some market participants expect Bitcoin to continue its growth with its value by the end of 2021 amounting to $ 100 thousand.
Is Dogecoin better than Bitcoin?
For many crypto enthusiasts the question whether Dogecoin or Bitcoin is still on. According to the billionaire Mark Cuban, Dogecoin is more often used as a means of payment than BTC. The billionaire is known for supporting DOGE and he is the owner of the Dallas Mavericks basketball team. Team fans can purchase tickets and merchandise on the team’s website with Dogecoin as well, although the products can also be purchased with Bitcoin. According to the billionaire, Bitcoin is not very popular, because clients do not have the financial possibility to own an asset, moreover, Bitcoins are more often stored and not spent. The reason is that Bitcoin is perceived as a store of value, and Doge is nothing more than a short-term convenient investment.
In addition, the DOGE price is much lower than BTC cost, it is simply easier to pay off with DOGE. And the transaction fees are also lower than in the case of Bitcoin. Perhaps for Bitcoin supporters, this attitude of the billionaire will be very unpleasant, but for those who do not have the finances to own Bitcoin, DOGE is quite a working financial instrument.
By the way, Bitcoin over time may become an asset that will only be available to wealthy users, while the rest will have to be content with lower value assets. Therefore, a situation may arise when a new division of classes in society by the ownership of digital assets may occur.
Is Dogecoin worth buying?
Dogecoin (DOGE) is just a long-running joke with a $ 28 billion cap. Can a coin that does not even try to be serious be considered as an investment object at all?
DOGE is one of the most unpredictable cryptocurrencies in the entire crypto market, and certainly the most unpredictable in the top-10 digital coins. Its rate depends not so much on some objective reasons but on fluctuations in the information field and the words of opinion leaders (including Elon Musk’s tweets). However, perhaps it is the memeticity and glory of the “folks” cryptocurrency that will allow Dogecoi
At least, this is the opinion of many investors who simply keep DOGE and use it out of loyalty to the idea of the asset. Dogecoin does not have a deficit, which is used by Bitcoin, and the chart of the coin rate resembles a roller coaster, but the unique positioning of this cryptocurrency leaves the potential for growth behind it.n to surprise us more than once.
Will Dogecoin ever reach the value of Bitcoin?
Dogecoin is currently traded at $ 0.2168. The token’s market capitalization is also estimated at $ 28.7 billion, which is striking considering Dogecoin was launched in 2013 based on an online prank involving a Shiba Inu dog. The bullish sentiment has been linked to a number of factors, including the endorsement of DOGE by celebrities on social media. Michael Kamerman, the CEO of Scandinavia-based Fintech Skilling, told Express.co.uk that renewed interest in Dogecoin could be an enticing offer for investors. Dogecoin holders are already making over 6,000% of last year’s investment returns, but many of them are preoccupied to see the token hit new $ 1 highs. But does Dogecoin have a chance of striking the $ 1 target before the end of 2021? According to the XBT trading platform, Dogecoin may well achieve this ultimate goal by 2025. Some of the сrypto enthusiasts vowed to hold DOGE until the price hit an even more astounding $ 10.
Bloomberg Intelligence strategist Mike McGlone predicted that the price of Bitcoin could reach $ 100 thousand this year. As stated by the opinion of various crypto analysts there are many reasons why Bitcoin can cost $ 1 million, $ 2 million, $ 5 million. Or it can cost $ 10 thousand if demand disappears and people understand that Ethereum is more interesting as a technology.
Disclaimer: Please keep in mind that the content of this article is not financial or investing advice. The information provided is the author’s opinion only and should not be considered as direct recommendations for trading or investment. Any article reader or website visitor should consider multiple viewpoints and become familiar with all local regulations before cryptocurrency investment. We do not make any warranties about reliability and accuracy of this information.