In a bizarre twist of fate, Dogecoin has risen to become one of the most valuable cryptocurrencies in terms of market capitalization, reaching a peak of $75 billion in May last year. Bitcoin’s market capitalization is currently over $1 trillion. The people have selected the meme coin while a hype of Bitcoin vs dogecoin going around, but does it stand a chance against the Crypto giant?

Dogecoin began as a joke to help people learn about blockchain‘s possibilities in a fun and meme-like fashion. Billy Markus and Jackson Palmer, the developers of Dogecoin, copied the Litecoin source code, added a Shiba Inu logo, and released the Doge as a full-fledged Crypto coin.

Dogecoin is an open-source project that has evolved over time and now has some significant technological variations from the Bitcoin code it was based on when it first started. But, what exactly are these distinctions, and do they offer value to the digital currency compared to Bitcoin? Which is the better investment for someone like you!? Let’s find out here on cryptocurrencysimple.com. 

Before I go deeper into comparison, let us look at Bitcoin and Dogecoin & How they work in this crypto Blockchain world!

What exactly is Bitcoin?

Satoshi Nakamoto invented Bitcoin in 2008, and it was first used in 2009. Satoshi Nakamoto is a pseudonym for someone yet unknown to the rest of the world. Satoshi argued that a public creator could not exist for a product such as Bitcoin since it would undermine the decentralized principle.

Since the 1980s, Bitcoin’s decentralized ledger became the first genuine blockchain implementation despite comparable notions within the crypto community. Satoshi then realized that a network might make spam uneconomical by demanding energy-intensive, complex computations. This mechanism, known as proof of work (PoW), allowed individuals willing to pay a fee for network access to perform trustless, peer-to-peer Bitcoin transactions.

The money was delivered to the miners, a decentralized network of individuals who do these complicated calculations to share the profits. PoW simultaneously eliminated spam and provided random people worldwide with a way to earn money from their home computers. As more users choose to contribute their processing power to the Bitcoin network, the value of Bitcoin increases.

What is Dogecoin?

Many Bitcoin clones were produced in the middle of a wave of irrationally overbought Bitcoin clones, and Dogecoin was one of them. Billy Markus and Jackson Palmer had no intention of getting millionaires; all they wanted to do was a meme on other shitcoins. But, unfortunately, that is precisely what they did.

Markus claimed in a Reddit rant that the project took around three hours to complete and that he spent “the most of that time modifying the client’s code to make the text Comic Sans.”

If that isn’t enough to persuade you of Dogecoin’s over $75 billion market worth, check Dogecoin: A Full beginner Guide to know more about it!

6 Reasons/facts to know who is better between Bitcoin vs Dogecoin

#1 ) The Purpose for the Coin

Its creators made Bitcoin work a little bit like digital gold. This means that while Bitcoin can process about seven transactions per second (TPS), it’s worth far more than any other coin. The reason people use BTC for significant money transactions is because it’s easy to send and receive money.

Some people also think of Bitcoin as an investment, which has worked out well because Bitcoin has grown at an average rate of 100 percent to 200 percent each year. From March 2020 to July 2021, the value of Bitcoin went up about 800 percent, which made great money for people who were able to hold on through the ups and downs.

On the other hand, meme-based Dogecoin started as a way for people to learn about cryptocurrency fun and easy. It was a coin that people could send for educational purposes or as a unique hobby. The price was so low that people could send it to each other for a small amount of money. Many online businesses now accept DOGE, but it’s not as common as BTC.

#2 ) Bitcoin is more than just a money-transfer method.

Let’s start with the notion that Doge might become a usable cryptocurrency one day. It has the potential to outperform Bitcoin. Transactions are speedier, more eco-friendly, and less expensive. However, it’s a crowded market, and I’d be wary of investing in anything that is only a means of payment.

The following are some of the critical factors:

 Other Altcoins: Dogecoin is one of many alternative coins that improve Bitcoin’s payment capabilities. The problem is that they’re all volatile. Would you want to take money for a meal only to have the value decrease in a couple of days if you were running a restaurant? It would have a negative impact on your cash flow.

Stablecoins: Stablecoins address the issue of volatility. Because these cryptocurrencies are linked to stable assets like dollars or gold, their value does not change dramatically from day to day.

Government coinage: such as the digital dollar, are another possible competitor in the digital payments sector. The Federal Reserve ( FDR ) has stated that it is considering creating its coin, while China has already begun testing a digital yuan. Because they are both stable and supported by the government, they have the potential to blow the alt currencies out of the water.

We don’t yet know how this will play out, but one thing is sure if Doge is to succeed as a digital currency, it will face stiff competition from all sides. Bitcoin, on the other hand, is competing in a separate race. Some regard it as a gold-like digital store of value. Others see it as a stable, safe platform to build additional cryptocurrencies.

#3 ) Market Capitalization

There is no contest when comparing the two cryptocurrencies regarding market capitalization. Bitcoin’s market valuation was over $867 billion at writing, whereas dogecoins were slightly over $31 billion. Bitcoin is presently the most valuable cryptocurrency, with Dogecoin ranking ninth.

DOGE was formerly rated somewhere between the 30th and 50th most valuable cryptocurrencies by market capitalization, if not considerably lower. However, during the altcoin craze of 2017 and 2018, the meme coin surpassed the $0.01 barrier and hit a market worth of $1 billion for the first time.

Bitcoin has always been the most significant valuable cryptocurrency in market capitalization. Other coins can’t compete for the top rank in the same way as Bitcoin can since it has the oldest history, the most secure network, and the largest community of users and volunteer developers. So when big-time investors with a lot of working cash want to go into crypto, they usually put the majority of their money into Bitcoin, deeming the other choices too hazardous.

Although the speed with which specific cryptocurrencies, like Dogecoin, have ascended the ranks, it appears that Bitcoin will remain the most valuable currency by market capitalization.

#4 ) Big group of people supports Bitcoin.

The Bitcoin Foundation and other organizations fund a big development crew to maintain Bitcoin bug-free and up to date. Although Bitcoin is sluggish, developers consider building additional technologies on top of it. In addition, the IT specialists are working on upgrades that would make transactions more straightforward and less expensive.

Dogecoin has announced that its first update in years will be released shortly. Dogecoin has four part-time developers who claim that Doge 1.21 will be released soon. That’s fantastic news for Doge, but it’s only a drop in the bucket. Because Doge lacks full-time developers, what happens if the platform is hacked or a technical issue arises in the middle of the night?

#5 ) Block Time and Transaction Speed

This really is one area where Dogecoin outperforms Bitcoin, as the DOGE network executes transactions more swiftly and cheaply than the BTC blockchain.

Every minute, the DOGE blockchain processes a new block of transactions. Every 10 minutes, the BTC Blockchain processes a new block. While this makes DOGE more appealing as a medium of trade, it is less attractive as a store of value.

A larger quantity of new Dogecoins entering the market tends to push down the price since DOGE miners earn 10x the block rewards as Bitcoin miners.

#6 ) Total / circulating supply 

It’s tough to compare the supply and demand for Dogecoin and Bitcoin because they are very different.

One of the things that makes Bitcoin valuable is that it has a low-inflationary money policy. There is less and less Bitcoin over time, not more. If you’re a miner, you get a block reward every four years or so. This process is called “the halving.” There will only be 21 million Bitcoin ever mined, so there will never be more than that.

On the other hand, Dogecoin has a policy that causes money to grow. There is no limit to how many DOGE coins miners can make, but there is a cap of 5 billion coins each year. In addition, the reward for mining DOGE hasn’t changed in a long time, so 10,000 DOGE is still the reward for each block.

In other words, people can keep mining DOGE and dumping it on the market until there is no more of it left to mine. DOGE’s supply and demand make it more likely that the price will fall toward the center of the Earth as time goes on.

#7 ) Bitcoin is a superior long-term investment.

The Motley Fool, Tesla, MicroStrategy, The Ascent’s parent company, and other big MNCs hold Bitcoin because it believes in the currency’s long-term potential. It isn’t aiming for quick profits; instead, it is willing to retain Bitcoin, hoping that it will do well over time.

Is a long-term investment in Dogecoin a wise idea? It may continue to astonish us all. However, the coin was developed as a joke with no real purpose, and its market capitalization has now surpassed that of some well-known corporations. I would not invest in a company that did not have a business strategy, regardless of its prominence on the internet.

At the end of the day, all cryptocurrencies are high-risk investments. There’s a lot we don’t know about how they’ll play out. However, Dogecoin appears to be riskier than most. It has exceeded enormously, and I hope it continues to do so for the Dogecoin community. But it’s just too much of a risk for me.

{ Conclusion } So, What’s Better: Bitcoin vs. Dogecoin?

Bitcoin is the best cryptocurrency for most investors, especially over the long term. With the endorsement of major institutional investors like Tesla and PayPal, it’s become clear that Bitcoin is a sound investment. Moreover, Bitcoin’s hard-capped supply ensures investors of the digital asset’s scarcity continue forward. Given the current level of buzz around Dogecoin, the cryptocurrency might outperform Bitcoin shortly if the current trend persists.

FAQS on Bitcoin vs dogecoin:

1) Is Dogecoin on its Way to Becoming the Next Bitcoin?

Dogecoin would have a hard time displacing Bitcoin as the most popular cryptocurrency. Bitcoin has 98 percent of the hashing power of all proof-of-work currencies, and there’s no reason to believe Dogecoin or any of the other altcoins will be able to compete with it.

2) Is Dogecoin worth buying?

I don’t suggest Dogecoin to investors because it has no real-world application. However, when the price is much lower than its previous peak, buying this meme currency now may appear to be a low-risk, high-reward decision.

3) Who owns the most Dogecoin?

With the address ‘DH5yaieqoZN36fDVciNyRueRGvGLR3mr7L’, the top account currently holds 36,711,943,025 DOGE or 28.28% of all Dogecoin.

4) Is Dogecoin safe? 

While all cryptocurrencies carry some level of risk, Dogecoin is one of the most hazardous. So before you even consider purchasing, examine how this investment will perform over time.

5) So, Where to Buy Dogecoin?

Bitcoin is now accepted practically everywhere, including petrol stations. However, we do not encourage squandering your hard-earned cash on extortionate Bitcoin ATM fees. Instead, Coinbase, CoinDCX, Gemini, Robinhood, Kraken, BlockFi, Binance, and other exchanges provide them. Check out cryptocurrencysimple guide to the Best Cryptocurrency Exchanges if you’re new to crypto.