Dogecoin vs Bitcoin: A Comparison
If there were stars in the Crypto world, Dogecoin and Bitcoin would be it. Every site following Crypto movements follows the performance of both these Cryptos. Both of these Cryptos can be traded on websites like Bitcoin Code. Dogecoin’s vast army of dedicated followers and Bitcoin’s revolution of Cryptocurrency have an enormous number of differences between each other, and here are some of those:
Dogecoin was inspired by Shiba Inu’s popular meme, the “DOGE” meme. This peer-to-peer Cryptocurrency is open-source and aims to provide its users with an entirely decentralized, unknown, and secure environment to make their transactions. Dogecoin was originated as a joke between two software engineers, Billy Marcus and Jackson Palmer, but the coin rose to popularity soon after its release.
Designed as an alternative to traditional currencies, Bitcoin was released in 2009. It also allows peer-to-peer transactions without any intermediary making it a decentralized platform. Bitcoin was only intended to store value and a medium of exchange. All of its transactions are recorded on a public ledger called blockchain. Bitcoin has complete transparency and is highly secure. It also has the largest market cap in the Crypto market.
Bitcoin vs Dogecoin
Both Bitcoin and Dogecoin are volatile investments, but critical differences can help an investor choose one or the other. The blocks of the Dogecoin Network are mined using the Scrypt Cryptography, whereas Bitcoin blocks are mined using the SHA256 algorithm. Script language is a password-based algorithm, while the SHA256 ensures all personal data maintain anonymity during transactions.
Dogecoin is an Altcoin, meaning its programming language is inspired by Bitcoin, the first successful Cryptocurrency. The verification and validation of transactions to be added on the public ledger is similar for Bitcoin and Dogecoin. Dogecoin has a market cap of $26 billion compared to Bitcoin’s $893 Billion.
Dogecoin has a faster transaction speed compared to Bitcoin as it can complete almost 70 transactions in a second, whereas Bitcoin takes a second to achieve practically five transactions. It takes 2-3 minutes to confirm a transaction on the Dogecoin network, whereas 8-10 minutes to ensure one on Bitcoin. The transactions on Dogecoin are mainly to tip content creators digitally on social media sites like Reddit. Twitter, etc., whereas Bitcoin, intended to replace Fiat currency and is utilized in real-world payments and transactions.
Dogecoin has an unlimited supply, but it has a yearly limit according to which only 5 Billions coins can be issued every year, and approximately 113 Billion coins have been mined. In contrast, Bitcoin has a supply of 21 Millions, out of which 18 Million has been mined.
The Bottom Line
Some features of Bitcoin, such as its limited supply, market capitalization, and purpose of creation, among other things, make it a better investment than Dogecoin even though Dogecoin has given tough competition to Bitcoin for a coin that was inspired by a meme. This was very apparent with the 18,000% rise in the prices of Dogecoin.