As the digital world is getting strong, more and more people are relying on it. Digital currency has become a hot topic recently, thanks to the Covid-19 pandemic. Well, the crypto world has been growing for the last few years. However, the growth during the pandemic is incomparable.
You see, Bitcoin is the most popular cryptocurrency right now. Due to the easy process and reliability, most newbies are choosing bitcoin over others.
To get more information regarding the value of this digital currency, you can check Bitcoin-BerlinApp site.
However, Dogecoin has become one of the most-talked cryptocurrencies earlier this year. So, what is Dogecoin? And it’s getting as popular as Bitcoin? If you have such questions, we are here to answer them.
In this article, we are sharing a detailed comparison between Dogecoin and Bitcoin. By reading this article, you will learn what are the key differences between these two cryptocurrencies. So, let’s get started.
What is Bitcoin?
In simple words, Bitcoin is one of the pioneers of the digital currency world. This currency was created by an internet user called Satoshi Nakamoto in 2008. However, this person is still unknown to the world.
Even launched in 2009, Bitcoin started getting in the limelight from 2017 when the price touched $1,000 at the beginning of the year. After that, many governments and economists started giving attention.
So, why did Satoshi Nakamoto create Bitcoin? This is considered a safer transaction compared to others. In most cases, you can make transactions without revealing your identity. That’s the reason why digital currencies are getting popular nowadays.
On the other hand, you can make transactions without the central bank’s permission. It happens as a central bank can’t trace the activity of digital currencies. As we noted above, cryptocurrencies like Bitcoin maintain security. Well, this is the reason why Bitcoin is still illegal in most countries.
Why is Bitcoin getting popular nowadays? Well, there are several factors regarding this:
- It is a peer-to-peer network without central servers
- The ledger of Bitcoin is distributed, so it has no central storage
- Anyone can be a Bitcoin miner
- You can store this digital currency on your computer
- Anybody is applicable for creating a new Bitcoin address
- Bitcoin has no administrator, this currency is maintained by some privileged miners
If you are thinking of buying Bitcoin, you will find several marketplaces on the internet. On the other hand, many companies are including Bitcoin as one of the ways of transaction. There are several platforms available for investing in this cryptocurrency.
What is Dogecoin?
Software engineers Jackson Palmer and Billy Markus created Dogecoin as a joke. Their intention was to make fun of cryptocurrencies at that time. The most remarkable factor of this cryptocurrency is the meme dog Shiba Inu.
Dogecoin was launched on 6th December 2013. Later, it developed its own community on the internet. This cryptocurrency got popular after reaching a market capitalization of over $85 million in 2021.
Moreover, this digital currency got the limelight after Elon Musk announced that the rideshare moon mission of SpaceX was completely funded by Dogecoin. However, the Dogecoin Foundation announced the re-establishment to support the Ecosystem in August 2021.
You can use Dogecoin on popular sites including Twitch and Reddit. On the other hand, people are using this digital currency for several purposes. Hence, this currency has been used in the gambling and pornography industries.
Moreover, Dogecoin is getting a lot of promotions nowadays. The founders address this as the ‘fun and friendly digital currency’. Dogecoin is currently a valuable sponsor for Premier League club Watford.
Just like Bitcoin, you have to store Dogecoin in a crypto wallet. To use a crypto wallet, you need a private key. Make sure you are keeping this private key safe. For beginners, using Dogecoin can be tricky. So, you have to be careful.
Difference Between Bitcoin and Dogecoin
Now, you know the basics of Bitcoin and Dogecoin. So, what is the difference between these two digital currencies? According to most experts, Dogecoin is the copycat of Bitcoin. Both of their frameworks are almost the same.
The key difference between these two cryptocurrencies is Dogecoin doesn’t have a lot of core software updates. On the other hand, it takes Dogecoin around 1 minute to process a transaction while Bitcoin can make around 10.
Plus, Dogecoin has an issue with halving. As a result, the investors have to face inflation. On the other hand, Bitcoin investors have a low chance of suffering from inflation. It’s possible as Bitcoin includes a hard-capped supply. Even though Dogecoin is the better payment method, most people prefer Bitcoin.
Moreover, Dogecoin is less secure as well. An attack is not expensive compared to other crypto networks. In this case, Bitcoin is more mature about security. If you are a beginner, Bitcoin is the ideal one for investment.
Moreover, long-term investors also choose this cryptocurrency network. If you are interested in short-term gain, you can use Dogecoin.
Conclusion
Both Dogecoin and Bitcoin are hot topics in the post-Covid world. We have shared the key differences between these two cryptocurrency networks. If you are a newbie, Bitcoin is the ideal choice. On the other hand, Dogecoin is good for all those people who want to take risks. Plus, it’s also good for short-term investment.
FAQ:
- Is Dogecoin better than Bitcoin? Dogecoin is still new compared to Bitcoin. As Bitcoin has been in the market for the last 12 years, people rely on it more. However, Dogecoin has the potential to overtake Bitcoin.
- Is Dogecoin safer than Bitcoin? No, Bitcoin is less risky than other cryptocurrencies such as Dogecoin or Ethereum. However, when you are investing in the crypto world, you have to take risks.
- Is it worth investing in Dogecoin? Yes, it’s worthy somehow. However, if you are a beginner, you should choose popular cryptocurrencies like Bitcoin.
- Will Dogecoin reach $100? Well, it’s nearly impossible for Dogecoin to reach $100. It needs over $18 trillion investment to reach $100 by 2030.