Differences between Bitcoin and Dogecoin

If you have been thinking about investing in cryptocurrency or benefiting from it in any way, you must have read about Bitcoin. Another coin that might not have escaped from your attention is Dogecoin. Which one would you choose as a reliable investment option? Are they rather similar or are there more differences?

Let us have a look at their specifics and see which one is better.

Bitcoin

Bitcoin is the first cryptocurrency. That’s why it is frequently called the father of cryptocurrency. Bitcoin was launched as an alternative to fiat money in 2009 and now, it is the most expensive and the most popular cryptocurrency in the world. 

The BTC blockchain utilizes the Proof-of-Work consensus mechanism to confirm transactions and secure the network from fraudsters and double-spending. This consensus mechanism enables mining – creation of new coins by solving complex computational puzzles to confirm transactions in the network. This is one of the main reasons why the main cryptocurrency is heavily criticized: due to its operation on PoW, it is extremely energy consuming. So, energy consumption per year for mining purposes can be compared to energy consumption per year of a country like Argentina.

Therefore, before you decide to exchange your USDT to BTC, consider twice. However, if you check BTC forecasts, they look pretty promising, and in the future, BTC is not going to disappear nor its value is going to drop drastically to the extent that holding it will become useless.

The inherent value of Bitcoin is in its function as a value storage or money. In this regard, the coin has found a perfect niche in the financial world.

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DogeCoin

DOGE, or Dogecoin was created as a joke at the hype around the cryptocurrency world. The project creators selected the name and the logo of a popular meme Shiba Inu dog. The coin doesn’t have and isn’t meant to have any utility, it was created as a pure joke and nothing more. But surprisingly, it has received immense support from its community, leave alone the fact that the DOGE community has grown rapidly. 

With the support of Elon Musk who has tweeted several times that DOGE is his favorite coin, the coin value surged, and for now, DOGE is one of the leading cryptocurrencies based on its market capitalization.

DOGE is good for trading because its price fluctuates immensely. The coin depends largely on the opinion of prominent people, Elon Musk specifically, as soon as the famous inventor and entrepreneur shares a post in favor of the coin, the DOGE value surges. But as long as the project doesn’t offer any utility, it might be not the most reasonable option to invest in the long term. Most likely, as soon as Elon Musk stops being influential or as soon as another coin appears that takes the place of DOGE in the heart of the entrepreneur, the DOGE value will drop as unpredictably and drastically as it has grown.

Bottom Line

If you are going to swap BNB to TRON, hurry up to choose a platform with the best rates. However, if you are going to exchange your BTC for DOGE in hope for long-term return, think twice before doing so. While Bitcoin is a well-established cryptocurrency that has already proven its value, DOGE’s value is based on hype and its community only. As soon as people start favoring another meme coin, the DOGE price will drop inevitably. 

Investing in crypto has always been considered a risky venture. If you are going to try your luck in the world of cryptocurrency, think twice, learn everything about the activity you are going to perform, and invest only reasonable funds. 

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