As cryptocurrencies keep skyrocketing the investment space, Bitcoin and Dogecoin seem to be taking the lead. However, new investors may be unsure where to invest when comparing the two cryptos.
Bitcoin’s popularity and solid presence can be a criterion that will make you choose it. On the other hand, Dogecoin’s hype is equally intriguing, complicating your search for the best crypto between the two.
Can you trade Dogecoin to Bitcoin, and is the former better than the latter? Let’s find out how the two compare and discover if mining crypto is worth your time and investment.
What is Dogecoin?
Dogecoin is a cryptocurrency that gained traction following the Shiba Inu meme. The idea behind Dogecoin’s inception was to find user-friendly crypto that will offer an alternative solution to investors who are skeptical about Bitcoin.
And with the looming of cryptocurrencies like Ethereum and Bitcoin, investors looking for new tokens have found a viable alternative in Dogecoin. This demand brought about its adoption to more popular crypto in 2021, following Tesla’s CEO, Elon Musk’s endorsement. The endorsement has been instrumental in attracting members looking for altcoins in the blockchain ecosystem.
What is Bitcoin?
You cannot talk about cryptocurrencies without mentioning Bitcoin. It is the pioneer of digital assets launched in 2009 and has been one of the decentralized assets owned by many investors.
Bitcoin was Satoshi Nakamoto’s (pseudonym) idea, a Chinese trader who was looking for an anonymous payment gateway. The token had a few challenges a few years after its inception. However, its introduction has bred the inception of other digital coins like Dogecoin.
Is Dogecoin Better Than Bitcoin?
Even though Bitcoin and Dogecoin are popular digital assets, the two are distinct. So, how can you differentiate the two, and which one is better? Let’s look at them contrastingly.
The number of tokens in circulation (supply) is significantly different when comparing Dogecoin and Bitcoin. Dogecoin has no cap on its supply; you can get unlimited tokens in circulation. Initially, the founders had capped DOGE at 100 billion supply, making investors hoard the assets to earn profits. Following this perception, its supply is unlimited, meaning you cannot estimate how many Dogecoin assets are in the market. Unlimited supply may mean that investors should not bank on Dogecoin as an investment strategy.
On the other hand, Bitcoin has a market cap of 21 million. Its scarcity is why the token seems a lucrative investment. Ideally, investing in BTC is more profitable when in low supply.
Mining, a process by which cryptocurrencies are brought into circulation, also is a significant difference between the two cryptos. Bitcoin uses proof-of consensus and the SHA-256 encryption to add more tokens to the blockchain. As a result, miners must solve technical tasks before adding Bitcoin to the ecosystem.
Contrary, Dogecoin uses proof-of-work but Scrypt encryption. All miners are rewarded for successfully adding DOGE. Plus, the lack of scarcity makes it easier for investors to get Dogecoin.
So the question is Dogecoin is better than Bitcoin is subjective and depends on what you are looking for as an investor. For example, if you want a reliable and long-term store of value, Bitcoin may be the ideal choice. However, Dogecoin can be suitable if looking for alternative short-term crypto investments.
Is Crypto Mining Profitable 2021?
The question is mining Monero profitable is common among most prospective investors. It all depends on how you perceive crypto mining and what you intend to achieve. Miners who already have the mining equipment and are familiar with how proof-of-work consensus works may find crypto mining profitable.
However, the possibility of the availability of tokens on exchange sites makes it easier to buy, sell, and exchange tokens easily without mining. With this in mind, you may think otherwise about crypto mining and opt to buy.