The crypto industry has made waves in the market over the last few years. While Bitcoin – the first crypto token – has continued to rise in popularity, so have other notable coins. But one coin which has had a tremendous cultural impact even outside the crypto world is Dogecoin. From internet communities to celebrities like Elon Musk, everyone is talking about it. So what are these two tokens and which one should you choose?
What Is Bitcoin?
Launched in 2009, Bitcoin is the first crypto token ever created. It was made by Satoshi Nakamoto, an unknown person or group who intended for it to be used as digital money. It operates on a peer-to-peer, decentralised network with all transactions being recorded in a publicly-available ledger known as a blockchain.
The technology promises lower transaction fees than traditional payment methods, along with security, privacy and decentralisation of the entire payment network. Since Bitcoin is open-source, it also enabled other tokens to build using its foundation.
What Is the Dogecoin?
Dogecoin is a “memecoin”. This means it was made as a joke by its founders who wished to poke fun at the abundance of crypto tokens in the market like Bitcoin. The popular meme token was created by Billy Markus and Jackson Palmer in just a few hours through a Litecoin fork in 2013.
While the coin can be used for transactions, it is not an effective store of value. This is because the founders never intended for it to be a realistic alternative to projects already in the market. Rather, it served to bring more user interest to crypto tokens as it incorporated a popular meme into the token.
Bitcoin VS Dogecoin: Comparison
|Year of Launch||2009||2013|
|Purpose||To reduce reliance on banks and financial institutions for transactions. Bitcoin can be used as digital money||Created as a joke to incorporate a popular meme into the crypto world.|
|Maximum Supply||21 million BTC||Uncapped supply|
|Transaction Speed||7 transactions per second||30 transactions per second|
|Block Confirmation||10 minutes||1 minute|
|Market Capitalisation||$360.36 Billion||$7.95 Billion|
BTC VS Doge: Advantages and Disadvantages
Advantages of Bitcoin
- Most Popular Token – Bitcoin is the oldest coin in the crypto market. However, it has still managed to maintain its popularity. It has proved itself in the market and many users and businesses are familiar with the coin.
- Anonymity – Your personal information is not at risk on the Bitcoin blockchain. Since it only requires your public and private keys, transactions can be completed even without providing your name.
- Decentralisation – Bitcoin is a completely decentralised system of payments. No central authority can impact transactions or accounts on the platform. This means the network is entirely user-driven.
Advantages of Dogecoin
- Faster and Cheaper – Dogecoin can process more transactions per second than Bitcoin. It also has an average transaction fee of only $0.45.
- Unique Appeal – Dogecoin has managed to garner a dedicated user base with its unique appeal as a memecoin.
Disadvantages of Bitcoin
- Inefficient – Bitcoin requires a lot of energy and specialised hardware to mine. It also takes 10 minutes for each block to be confirmed. This makes scalability and sustainability harder to achieve.
- Lack of Applications – Bitcoin is a gen 1 blockchain. It does not have any widespread smart contract functionality that can extend its use cases beyond simple payments.
- Expensive to Mine – As mentioned above, mining bitcoin requires a lot of energy and hardware. This hardware can cost tens of thousands of dollars and may not even be profitable to mine.
Disadvantages of Dogecoin
- No Real Applications – Since Dogecoin was created as a joke, it was not made to substitute a regular crypto token. This means there are better coins you can use for payments or storage than Doge.
- Volatility – The coin’s nature makes it highly volatile. Additionally, its user base might fade away with time as people lose interest in the meme.
- No Supply Cap – The Dogecoin network may experience extremely high inflation due to there being no cap on the total number of coins.
The difference between dogecoin and Bitcoin is stark. One is a successful crypto token which provides highly secure and decentralised transactions to users around the world, while the other is an internet joke created as a parody of Bitcoin. However, Dogecoin has grown a lot since its release all thanks to its dedicated community.
Unfortunately, this does not reduce the disadvantages of Dogecoin. Bitcoin is certainly the better investment in the long run.
What is Better Dogecoin vs Bitcoin?
While Dogecoin can provide faster and cheaper transactions than Bitcoin, Bitcoin is still the better option due to its supply cap and robust network security.
Is Bitcoin More Secure Than Dogecoin?
Yes, Bitcoin employs SHA-256 hashing, which is more secure than Dogecoin’s security systems. It also requires specialised hardware for mining, which acts as a deterrent against malicious actors in the mining process.
Is Dogecoin Going To Be The Next Bitcoin?
It is unlikely that Dogecoin will become the next Bitcoin as the network’s rules are not financially sound. Since there is no limit to the total supply of tokens, Dogecoin tokens will continue to lose value over time. Further, Bitcoin provides a more secure blockchain.