Dogecoin’s (DOGE) price surged in 2021, reaching about $0.70, and then dropped, mirroring Bitcoin’s (BTC) rise and fall.
BTC is the most popular cryptocurrency while DOGE is a low-cost memecoin distinguished by its Shiba Inu emblem, but it’s still durable. At the time of August 29, 2022, CoinMarketCap ranks DOGE 10th in market capitalization.
Both Bitcoin and Dogecoin are prominent cryptocurrencies but also have several noticeable distinctions. Now let’s find out how Bitcoin and Dogecoin differ.
The 5 Major Distinctions Between Bitcoin and Dogecoin
Both cryptos were independently created for different reasons. Bitcoin’s inventors envisioned it as digital gold. Bitcoin’s transaction throughput is limited to seven TPS, although its value is higher than any other cryptocurrency. Many choose Bitcoin over standard payment options for large purchases.
Some people consider Bitcoin as an investment that has paid off as its value has risen. Bitcoin’s price spike from 03/2020 to 07/2021 produced enormous gains for its holders. The market struggled at the start of 2022 and is only now beginning to recover. Bitcoin decreased from $48,000 to under $19,000 from the first month to June 2022.
DOGE was released as a joke currency in 2014. DOGE was based on a viral photograph of a dog breed named Shiba Inu. Dogecoin was created as a humorous introduction to cryptocurrency. People can learn from each other or enjoy a hobby by trading this meme coin, which is worth less than a penny. DOGE is accepted by more online retailers than BTC, though not as popular.
Dogecoin is probably the most talked about shitcoin available to buy today. In 2013, this cryptocurrency split out from Litecoin, but it didn’t gain much traction until recently.
2. Market Capitalization
Considering the entire market cap of these two coins, there is no rivalry. On August 25, 2022, the market cap of Bitcoin was around $413 billion, and Dogecoin’s was more than $9 billion. Bitcoin has the largest market cap among cryptocurrencies, whereas Dogecoin comes in at number 10.
By early 2021, DOGE’s market valuation topped $1 billion, and its price surpassed $0.01. Bitcoin’s market cap is always the highest. Bitcoin’s track record, network security, active user, and developer community have kept it on top. Large institutional investors that wish to diversify their crypto holdings usually put most of their money in Bitcoin.
Dogecoin’s supply-and-demand dynamics differ from Bitcoin’s. Bitcoin’s policy on deflationary monetary is valuable. That means Bitcoin is becoming scarcer as its supply decreases. Every four years, mining block rewards “halve.” The total Bitcoin supply is 21,000,000.
But Dogecoin’s monetary policy supports price inflation. Only 5 billion DOGE can be issued each year. However, Doge can be mined endlessly. Dogecoin’s mining reward has been stuck at 10,000 DOGE for each block for a while. Thus, Dogecoin mining will continue.
4. Development of Security and Technology
Dogecoin’s Blockchain stopped before becoming popular. Between 2015 and 2020, there was no DOGE update. From 2022, tech development and updates continue. Dogecoin is a Bitcoin fork with a few differences. The two cryptocurrencies’ security is very different.
Bitcoin is safer than Dogecoin. Dogecoin has 540 TH/s compared to Bitcoin’s 238 EX/s. For more detail, One TeraHash is one trillion, and one ExaHash is one quintillion. So Dogecoin is easier to attack than Bitcoin. 51% of attacks occur when one person controls most of the network’s hashing power.
But DOGE’s innovative mining algorithm makes it easier and faster to mine than Bitcoin. Bitcoin employs SHA-256 and DOGE uses Scrypt.
5. Speed of transaction and time of block
DOGE blockchain of Dogecoin processes transactions faster and cheaper than Bitcoin’s BTC network.
DOGE blockchain handles transactions per minute. The Bitcoin Blockchain is updated every 10 minutes. DOGE could be more appealing as a medium of exchange, but it would be less attractive as a long-term investment.
With DOGE miners receiving 10 times as many coins each block as Bitcoin miners, we may see a decrease in price. Investor demand could keep Dogecoin’s price constant.
Do Dogecoins Represent the Future of Bitcoin?
Because the future is unknown, nothing is certain. Dogecoin won’t be the dominating cryptocurrency. Dogecoin and other cryptocurrencies have little sign of challenging Bitcoin’s market leadership, at least for now.
Dogecoin remains a meme coin despite its rapid (market-dependent) ascent. Ten years ago, it was a joke, and aside from a few high-profile backers, little has changed. Dogecoin’s confirmation times and transaction fees are better for frequent, low-fee transactions than Bitcoin’s. However, Bitcoin Lightning can also serve this purpose.