There are many cryptocurrencies out there; however, Bitcoin and Dogecoin are well-established and recognized in the crypto community. This isn’t to say, however, that they’re made equally. In this article, we’ll explore their differences (and similarities), so you can make an informed decision and which to purchase.
Let’s get started.
History
Both Bitcoin and Dogecoin have fascinating histories that are well worth exploring.
Bitcoin (BTC)
Bitcoin is the first cryptocurrency to achieve this degree of success. Some may even use the term cryptocurrency and the word Bitcoin interchangeably. The coin has had ups and downs over the decade (and a couple of years) since its release. However, it has since steadied to a very high value relative to its initial worth.
The concept of Bitcoin was put out there in 2008 by a developer under the pseudonym Satoshi Nakamoto before being released to the public on 3 January 2009. While many have claimed to be him, there has been no concrete proof that any of these people are him.
His identity remains a mystery, and he has not been heard from for some time.
Dogecoin (DOGE)
The open-source, peer-to-peer Dogecoin network was created in December 2013 by software engineers Jackson Palmer and Billy Markus. It’s considered the world’s first memecoin and boasts the face of a Shiba Inu dog as its logo.
And while it was only a joke, the coin has nevertheless persisted and is currently the 10th largest cryptocurrency in the world.
What It Does & Why It Was Created
But why were Bitcoin and Dogecoin created in the first place? And what utility do they even have? Well, that’s what we’re going to explore next.
Bitcoin (BTC)
Bitcoin was made in response to the global financial crisis of 2008 to 2009. It was created as a decentralized digital currency, offering the means of making transactions outside the central bank’s control. It functions well as a way of sending money over the internet.
Technology company Microsoft, streaming service Twitch, and British airline Virgin Airlines accept the currency as payment.
Dogecoin (DOGE)
Dogecoin has the same use as Bitcoin; it’s a means of transferring money over the internet. The creators of Dogecoin admitted that they only ever made it as a joke, and although it boasts a high market cap, it does have a low value.
Price History
Cryptocurrency has always had a somewhat inconsistent price history. Anyone who has bought and sold these coins long enough has realized that being a crypto investor comes with risk.
Bitcoin (BTC)
Bitcoin has a very long price history and was completely worthless when it was first released. The first Bitcoin transaction was just $0.00009 per crypto coin, and it wouldn’t be until 2010 that crypto would go up to a slightly higher $0.09 per coin.
It’d finally reach four digits in 2013 but wouldn’t find this type of success again until 2017, when it’d go up to five digits, maxing out at $19,000. It’d go even higher than this, where in 2021, the coin found itself momentarily being valued at over $600,000.
At the time of writing this, Bitcoin is valued at $19,210.50.
Dogecoin (DOGE)
Like other cryptocurrencies, Dogecoin was subject to significant price changes in the 2021 bull market (times in the financial market where prices are expected to go up substantially). It increased in value, from being worth around $0.0044 at the end of 2020 to a peak of approximately $0.69 in 2021.
And although prices have steadily declined since then, they’re still well above their 2020 prices and before.
Market Cap
The market cap is the total value of every cryptocurrency that has been mined. This is determined by multiplying the stock price by the number of outstanding shares.
Bitcoin (BTC)
As the most popular cryptocurrency in the world, Bitcoin has an incredibly high market capitalization. Currently, the coin boasts a market capitalization of over 368 billion dollars and a 24-hour volume of over 22 billion.
Dogecoin (DOGE)
Dogecoin, in comparison to Bitcoin, isn’t nearly as successful. It boasts a market capitalization of under 8 billion dollars and a 24-hour volume of over 300 million.
Main Similarities
Because Dogecoin was made as a parody of Bitcoin, it was, like Bitcoin, made to be transferable on a decentralized network. Dogecoin technology is quite similar to Bitcoin blockchain technology.
Main Differences
There are several distinct differences between the two cryptocurrencies, with one of the main differences being the fact that Dogecoin is much faster at processing transactions. While Bitcoin can only do 7-10 transactions each second, Dogecoin can do about 33 transactions per second.
Even Dogecoin’s block confirmation time is faster, ten times so. While Dogecoin takes only 1 minute to confirm a block, Bitcoin takes about 10 minutes. Dogecoin even has lower transaction fees than Bitcoin. While just a few months ago, Bitcoin averaged about $ 1.5, Dogecoin averaged $ 0.24.
Risks
Are there any risks to investing in BTC and DOGE? Well, in the following paragraphs, that’s exactly what we’ll explore.
Bitcoin (BTC)
Bitcoin is an inherently risky investment because of how unpredictable it can be. Trends from its release up till now show significant fluctuations. If you had bought Bitcoin at a certain point in 2021, you’d be at over a $ 30 000 loss.
Dogecoin (DOGE)
Because crypto platforms aren’t often well-equipped to deal with a large number of sudden trades, not many people will be able to sell, even when Dogecoin’s price goes up substantially. By the time you’re able to trade, the price might fall again.
And while all cryptocurrencies are pretty volatile, variables such as Elon Musk and his tweets about Dogecoin can make this coin even more so. In addition, a single person was reported to own 28% of all Dogecoin, and 70% is owned by just 100. This means that the price can be influenced very easily by just a few people.
Where You Can Buy It
So, where can you buy Bitcoin and Dogecoin? We’re going to be exploring this next.
Bitcoin (BTC)
Bitcoin is relatively easy to purchase because of its popularity; you can even buy it through financial applications such as Venmo and PayPal. You could also try various crypto exchanges such as Coinbase, Binance, Kraken, and Crypto.com; these generally offer the lowest costs and have wallets you can use to store your Bitcoin.
You might even be able to buy the digital currency from a more traditional broker, such as TradeStation or Interactive Brokers, or through Bitcoin ATMs. However, commissions may be higher than if you bought it through a crypto exchange.
Dogecoin (DOGE)
You can buy Dogecoin on various crypto exchanges, such as Binance.US and Kraken. The different trading platforms are usually relatively easy to use, although some may be more advanced and technical. Although the more complicated ones often boast lower fees.
You can even buy crypto through investment applications such as Robinhood but bear in mind that if you do this, you may not be able to take your coins off the app.
How You Can Exchange Bitcoin for Dogecoin
Right now, a single Bitcoin is worth over 30 000 Dogecoin. You should be able to trade these digital currencies quite easily on various crypto exchanges.
Future Plans
So, what does the future hold for crypto Giant BTC and memecoin introducer DOGE? Well, it’s complicated, but there are certainly some exciting predictions out there.
Bitcoin (BTC)
Bitcoin is not what it was intended to be. It was initially designed as a completely decentralized Bitcoin network where people could freely transfer money on the internet. But now, the cryptocurrency market has become controlled by investors with considerable holdings, and mass bitcoin mining farms have become a norm; in a way, it has become centralized.
In a more positive light, we can expect that Bitcoin will grow as the crypto of choice for international trade within the next decade. Considering how Tesla has purchased 1.5 billion dollars in Bitcoin and how many companies accept the currency as payment, we know that Bitcoin has a bright future.
Predictions also view this currency positively, with some valuing it at hundreds of thousands of dollars by the year 2030. It’s no wonder enthusiasts see it as digital gold. And while many cite that there’s only a finite supply of the currency, it’ll still be many years before it’s all been mined.
Dogecoin (DOGE)
Dogecoin’s future is difficult to predict; however, some say, like Bitcoin, that it may become a widely accepted payment method for companies across the globe. And that, over the next eight years, we can anticipate it to reach about $ 1 per coin.
The Dogecoin community is quite enthusiastic about the future of the Dogecoin network.
Sources:
https://www.geeksforgeeks.org/bitcoin-vs-dogecoin-7-differences-between-bitcoin-and-dogecoin/
https://coinmarketcap.com/currencies/dogecoin/
https://www.coindesk.com/price/bitcoin/
https://www.fool.com/the-ascent/buying-stocks/articles/the-dangers-of-dogecoin/
https://www.geeksforgeeks.org/bitcoin-vs-dogecoin-7-differences-between-bitcoin-and-dogecoin/
https://www.thebalancemoney.com/dogecoin-vs-bitcoin-how-do-they-compare-5219497
https://www.bankrate.com/investing/how-to-buy-bitcoins/#bitcoin
https://changelly.com/exchange/btc/doge
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