Which is better: Bitcoin or Dogecoin?

Some crypto enthusiasts might consider the comparison of DOGE and BTC quite irrelevant. All in all, Bitcoin was the first digital coin in history, and now it’s the biggest asset in the segment of financial markets. This project was intended to introduce decentralization to the financial system, making the world of money faster, more powerful, and more convenient. DOGE team, on the other hand, did not have the same high purpose. Its main goal was to mock Bitcoin and enthusiasts of the new technology.

Nevertheless, some time has passed, and now DOGE is something much bigger than just a funny meme — it’s now considered a real cryptocurrency with huge growth prospects and a very loyal community. So, why not weigh up these two cryptocurrencies? Let’s get down to Bitcoin vs Dogecoin comparison!

Key Similarities

The biggest and most obvious similarity between Dogecoin and Bitcoin is that the meme crypto was developed on source codes from chunks of Bitcoin, Litecoin, and Lucky Coin. To some extent, DOGE is a fork of Bitcoin’s fork, meaning that it actually has many technical features in common.

The Dogecoin blockchain, similar to its predecessor, works on the Proof-of-Work consensus algorithm. This system is based on coin mining, which is necessary in order to add new blocks to the chain and validate transactions.

Dogecoins and Bitcoin are also quite similar from the perspective of utility. Both networks are used to store value. By this time, many businesses all over the world have accepted both BTC and DOGE as online payment methods that can be used as alternatives to fiat money.

The Biggest Differences

Despite technical similarities, Dogecoin and Bitcoin are different projects. Let’s discover what exactly makes them so contrasting.

Objectif

As you have just learned, the team behind the Bitcoin project had many different objectives than the developers of DOGE. Bitcoin developers aimed to change the global financial system by making it more secure, stable, transparent, and inclusive, whilst the DOGE team found its source of inspiration in a viral meme with Shiba Inu dogs and decided to introduce it to have the fun of the technology of cryptocurrencies.

Market cap

In terms of market capitalization, Bitcoin is an undisputed market leader. It’s the biggest blockchain ecosystem and the biggest digital coin. As of the date of writing, the BTC market cap is estimated at over $475 billion, whilst DOGE’s market cap is $11.8 billion, which makes the meme coin the 10th biggest digital asset.

What’s interesting, is that Bitcoin has been holding this position from the date of its foundation. DOGE’s rise, on the other hand, started in early 2021. Before that, there was no point in comparing its market cap with Bitcoin’s one, as it was even fat from the $1 billion point.

On the contrary, Dogecoin has a big room for improvement. It’s predicted that the project will scale and make the gap smaller if sustainable growth will continue at a current pace.

Speed of transactions

This is the difference that makes DOGE a better option than Bitcoin. On average, this network needs around 1 minute to confirm and process transactions based on the Scrypt algorithm. Bitcoin needs much more time to deal with it. To be more specific, the transaction time may be as long as 10 minutes.

This feature makes Dogecoin a more favorable system for developers and cryptocurrency enthusiasts. But on the other hand, the system of Bitcoin is more reliable and thanks to higher transaction time it can avoid network congestion.

Supply 

This characteristic is vital for all financial assets, and cryptocurrencies are no exception. The supply of coins affects their scarcity and drives their value.

Bitcoin is the biggest cryptocurrency with a decreasing supply. This means that the falling supply motivates the higher demand for the assets, and leads to a price surge. We have already witnessed occasions of Bitcon’s spikes that were caused by increasing scarcity driven by so-called halving. In general, no more than 21 million bitcoins can be issued. As of the date of writing, 19.2 million coins are in circulation.

At the same time, Dogecoin’s supply doesn’t have any limitations. More than 132 billion tokens are in circulation today. This is a very bad thing for the liquidity of the project. That’s why many experts don’t even consider DOGE a real financial asset.

The final thought

To sum it up, Dogecoin and Bitcoin have both similarities and differences. Each of these projects features some considerable advantages and pitfalls as well. Both are in the top-10 of cryptos by market capitalization. 

If you are wondering which of them is better as an investment, Bitcoin comes to mind as a more reliable option with a better track record. Dogecoin, on the contrary, can perform a huge spike and bring great returns overnight.

Whatever option you choose, make sure that your decision is driven by a well-thought-out strategy and evidence-based analysis.