Bitcoin vs Dogecoin: Which One is Better for you?

CIOReviewIndia Team | Wednesday, 23 February 2022, 13:19 IST

  • No Image

Ever since their launch in 2009 with Bitcoin, cryptocurrencies have dominated discussions and interest around the world. With more than 11,000 cryptocurrencies in circulation and more than 60 million investors, crypto is getting more and more mainstream each day.

That brings us to a comparison between these virtual currencies and how they work differently for different people. Two of the oft-compared currencies are Bitcoin and Dogecoin. While Bitcoin is the world’s first and largest crypto, the other is its meme that’s equally exciting and is hitting record highs.

To understand how they work, it is essential to know their key differences. Read on to know more:

History of Bitcoin and Dogecoin?

When Satoshi Nakamoto launched Bitcoin by introducing it in a whitepaper as a decentralised virtual currency that used peer-to-peer networks to allow people to transact. It was built on blockchain’s open-source technology that made it resistant to frauds and cyber-attacks.

On the other hand, Dogecoin was launched as a joke using the image of Shiba Inu, a Japanese breed, as its mascot. Dogecoin was created in three hours by copying core chunks of Bitcoin including Lucky Coin and Litecoin and tweaking their features a bit.

Though its creators Jackson Palmer and Billy Markus expected their ‘fun’ project to fall off within a few days, the reverse happened. Dogecoin grew exponentially in its popularity with people beginning to invest in it. This following grew up more after the famed Elon Musk tweeted about Dogecoin sending its prices ‘up to the moon’.

Similarities between Bitcoin and Dogecoin

Considering that Dogecoin was created using Bitcoin’s source code, there are several similarities between the two. Both the currencies work on Proof-of-Work (PoW) algorithms that involve miners solving complex equations to discover a 64-digit hexadecimal code for every block. Once this transaction is complete, the miners get rewarded for their efforts and more coins get released in the system.

Both the coins can be used to send money across the world, buy goods and services, and even donate to charities.

But, this is where the similarities end. While they are built on the same technology, the two currencies are not identical.

Differences between Bitcoin and Dogecoin

Here’s taking a look at the differences between the two coins:

  1. Proof-of-Work standards: Bitcoin’s PoW is built on the SHA-256 hash standard that’s considered to be incredibly powerful when it comes to cyber-attacks. Dogecoin is built using the Scrypt hash standard, making its mining more accessible.
  1. Supply: Bitcoin’s supply is capped at 21 million. This means that it cannot be used as a store of value. On the other hand, this scarcity has helped add value to the coin. Dogecoin’s supply, on the other hand, is infinite. While this makes it always available, it also means that it may never become too valuable. Check how Doge is positioned against INR by visiting credible links like Dogecoin to INR.
  1. Speed: At a block confirmation time of 60 seconds, Dogecoin supports 33 transactions per minute. Bitcoin’s block confirmation time is 10 minutes per block and it can perform 7 transactions per minute.
  1. Volatility: While both cryptocurrencies are volatile, experts believe that Doge is more speculative. You can check the price chart of both in different time frames to understand their behaviour. Also check the BTC to INR before investing.
  1. Despite all these similarities and differences, Bitcoin has an advantage over Dogecoin in terms of its higher market cap and stability.  Dogecoin could offer more growth since it is still new compared to Bitcoin. How good or bad it will be for you depends on your risk appetite, financial bandwidth, and objective of investment.
🍪 Do you like cookies?

We use cookies to ensure you get the best experience on our website. Read more...