Dogecoin vs. Bitcoin: Which is the Better Investment?
In recent years, cryptocurrency has grown in popularity and use. And investors now have an ever-expanding menu of digital assets to consider include in their portfolios, ranging from huge mainstream coins like Bitcoin to innovative altcoin offerings such as Dogecoin.
This article gives a detailed comparison of cryptocurrency pioneer Bitcoin and popular meme-inspired rival Dogecoin. We evaluate and contrast the origins, technical operations, supply dynamics, institutional support, use cases, and investment prognosis for these popular cryptocurrencies. While they both use blockchain for transaction validation, their approaches differ in areas such as emission rates, network support, and intended utility.
Dogecoin vs Bitcoin investment: A Brief History of Bitcoin and Dogecoin
Palmer built Dogecoin on the popular ‘Doge’ Shiba Inu meme and combined it with a cryptocurrency. Palmer then joked about his idea on Twitter, but Markus spotted it and reached out to help establish Dogecoin.
Before Palmer could answer, Markus created Dogecoin in three hours by forking Lucky Coin, which is a fork of Bitcoin in its own right. Essentially, Markus constructed Dogecoin by cloning and modifying core pieces of Bitcoin, Litecoin, and Lucky Coin source code before launching the project.
Palmer and Markus expected their meme effort to fail soon after Dogecoin was launched. Instead, DOGE gained a sizable audience thanks to the Reddit social media network. The Dogecoin subreddit was buzzing with DOGE enthusiasts exchanging DOGE, discussing DOGE knowledge, and welcoming new members to the DOGE community.
Eventually, Tesla creator Elon Musk became involved. Musk repeatedly tweeted about DOGE in early 2021, suggesting he would send the cryptocurrency to the moon. Musk’s tweet led the DOGE price to surge as investors rushed to participate. It also sparked a swarm of memes about DOGE, bringing the asset even more exposure.
However, during Christmas 2013, the Dogecoin network was hacked. A hacker compromised DogeWallet, a third-party Dogecoin platform, and stole 11 million DOGE. Just two days later, the Dogecoin community gave 15 million DOGE to DogeWallet in a show of kindness.
Many in the crypto world still consider DOGE to be more of a meme than Bitcoin. Nonetheless, the general public has ongoing exposure to DOGE because popular exchanges such as Coinbase and Robinhood support the asset.
With increased accessibility, traditional investors may be more likely to invest in DOGE. DOGE’s growing popularity has prompted engineers to begin on a scalability and security update, which is scheduled for deployment in early 2022.
Bitcoin or Dogecoin which is better
We will compare Bitcoin and Dogecoin based on several factors. Here are they:
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Price history: Bitcoin vs. Dogecoin
Both cryptocurrencies have seen volatility, but Bitcoin has demonstrated significant long-term gain, rewarding patient investors. Dogecoin peaked in 2021, and following price increases failed to match previous highs. While the history of Bitcoin demonstrates stability and value appreciation, Dogecoin’s wild changes indicate its popularity among short-term traders.
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Use & Utility: Bitcoin vs. Dogecoin
Bitcoin is a form of ‘digital gold,’ designed for peer-to-peer, decentralized payments and long-term value storage. Dogecoin is based on community interaction and enjoyment, rather than financial foundations.
Bitcoin’s progress has led to its recognition as a viable alternative to fiat currency, notably as an inflation hedge. Institutional assistance has helped to solidify its reputation. Meanwhile, Dogecoin remains mostly hypothetical, with critics pointing out that it serves little use other than as a fun, meme-based initiative.
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Supply and inflation: Bitcoin vs. Dogecoin
Bitcoin’s fixed quantity of 21 million units prevents inflation while increasing scarcity-driven value. Dogecoin, on the other hand, has a limitless supply, with 5 billion new coins generated each year, making it inflationary and potentially devaluing over time.
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Security: Bitcoin versus Dogecoin
Both cryptocurrencies use the Proof of Work (PoW) consensus technique. However, Bitcoin’s large network of miners makes it significantly more immune to future attacks than Dogecoin’s smaller network.
Is Bitcoin or Dogecoin a safer investment?
Bitcoin and Dogecoin are safe investments, considering how far they have come. If you are looking for a long-term investment to hold, Bitcoin should be your consideration. However, Dogecoin is the best option for a short-term hold.
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The Dogecoin network is constantly pumping in new coins, devaluing the asset over time. Many investors believe that depreciation will hurt Dogecoin’s future value. Bitcoin, on the other hand, is intended to be appreciated over time because of its scarcity. Demand will determine if Bitcoin’s value rises further, but there is no disputing the asset’s potential.
Palmer and Markus created Dogecoin as a meme, remember? There is little in the way of long-term philosophy programmed into the Dogecoin network, especially given diggers’ ongoing pumping of more DOGE. However, despite Markus and Palmer’s intentions, the community has taken over the Dogecoin project. Dogecoin’s future scalability and security updates will allow the community to validate its existence.
Overall, based on the pricing history of both projects, Dogecoin appears to be a more short-term investment for many, whereas Bitcoin is a long-term investment. Certainly, some people see Bitcoin as an alternative cash and Dogecoin as a store of wealth, and they have gained from it in both situations. Historically, the figures indicate that Dogecoin was a short-term investment while Bitcoin was a long-term one. However, the position of both networks might potentially change depending on future news and developments.