Bitcoin vs Dogecoin – 7 Differences Between Bitcoin and Dogecoin
The globe has progressively adopted the new digital or virtual currency market, which is rising at an astounding rate, over the last several years. However, as the crypto industry continues to gain traction, a slew of new trading cryptocurrencies have arisen in the virtual currency market that offers some incredible returns. Despite the fact that many individuals have begun to invest in virtual currencies, few people are aware of the differences between Dogecoin and Bitcoin and which is the better option.
The following topics will be discussed in this article:
- What is Bitcoin?
- What is Dogecoin?
- Which One Is Right For You?
- Bitcoin vs Dogecoin.
Let’s discuss each of these topics in detail.
What is Bitcoin?
Bitcoin is decentralized digital money that was first introduced in January of 2009. It is based on ideas presented in a white paper by Satoshi Nakamoto, a mysterious and pseudonymous figure. 12 The identity of the individual or people behind the technology is still unknown. Bitcoin promises reduced transaction fees than existing online payment methods, and it is run by a decentralized authority, unlike government-issued currencies.
It is a decentralized digital currency that can be transferred from a peer-to-peer bitcoin network and the transactions are verified by the network nodes through cryptography and recorded in a public ledger system known as the blockchain.
What is Dogecoin?
DOGE (Dogecoin) is an open-source, peer-to-peer cryptocurrency. It’s classified as an altcoin and a snarky meme coin. The Shiba Inu dog serves as the logo for Dogecoin, which was launched in December 2013.
It may be used for payments and purchases but it is not a very effective store of value.
Purpose of Cryptocurrency
Each of these two cryptocurrencies was created with a specific goal in mind.
- The Dogecoin was created as a spoof on Bitcoin’s meteoric rise in popularity, as well as the doge meme, which depicted a charismatic Shiba Inu.
- Bitcoin, on the other hand, was created for a more serious purpose, such as to facilitate transactions or to operate as a store of value.
Which one is right for you?
Risk tolerance is one of the most important factors that will help to determine the cryptocurrency one should purchase (and if one should invest in cryptocurrencies at all).
- Even the “safest” cryptocurrencies are still quite volatile, so risk-averse investors may be better off avoiding cryptocurrency entirely.
- Investors would understand Dogecoin isn’t built to be a financial asset because of its endless supply capitalization.
- Bitcoin, on the other hand, has a hard limit cap of 21 million BTC, which many believe contributes to the asset’s value due to its scarcity.
- Dogecoin’s confirmation delays result in a transaction rate of roughly 33 transactions per second, which is significantly quicker than Bitcoin’s average of 7 TPS.
- The price of Dogecoin is also significantly less volatile than the price of Bitcoin. Bitcoin’s value is known to fluctuate by thousands of dollars per day.
Bitcoin vs Dogecoin
Cryptocurrencies are made for a variety of reasons, each of which may entail distinct aspects of the crypto world. The table below summarises some of the major distinctions between Bitcoin and Dogecoin, with each having its own purpose and maximum quantity of coins.
|Developed year||Bitcoin was created in 2008 as a decentralized currency that did not require the use of a central bank or any other intermediaries. The bitcoin network, which is a peer-to-peer network in which transactions are authenticated by nodes and recorded on a blockchain, can be used to send and receive money.||The Shiba Inu dog is the Dogecoin emblem, which was established in December 2013.|
|Initial purpose||It was designed to be used as a form of cash or a store of wealth.||As a parody of Bitcoin and the doge meme, it was made.|
|Uses||Bitcoin may now be used to purchase a wide range of items, including real estate, cosmetic surgery, automobiles, fast food, and much more.||Dogecoin can be used to convey money between people as a form of payment for goods or services, or just as a currency.|
|Working||Each Bitcoin is a computer file that is saved in a “digital wallet” program on a smartphone or computer. Bitcoins (or sections of Bitcoins) can be sent to your digital wallet, and you can also send Bitcoins to others. The blockchain, which is a public ledger, keeps track of every single transaction.||Scrypt, a simpler hashing algorithm, is used by Dogecoin. It also employs the “proof-of-work” protocol, which enables it to accept work from other Scrypt networks. Mining Dogecoin uses less power than the SHA-256 algorithm used by Bitcoin.|
|Approximate current market capitalization||Bitcoin has US$352 billion approx. market capitalization up till now.||Dogecoin has $17.03 billion approx. market capitalization.|
|Security||Copying Bitcoins, producing counterfeit ones, or spending ones you don’t own is exceedingly difficult because every transaction is public.||Dogecoin isn’t as secure as bitcoin because of a lack of technical progress.|
|Maximum number of coins||Regardless matter how Bitcoin evolves, there will be no more bitcoins released after the 21-million coin ceiling is reached.||The number of coins that can be issued each year is unlimited, but the total number of coins that can be issued each year is limited to 5 billion.|
|Encryption||No, Bitcoin does not use any encryption. Bitcoin uses the Elliptic Curve Digital Signature Algorithm (ECDSA) with the elliptic curve secp256k1.||Dogecoin uses a scrypt algorithm.|
|Transactions per second||BItcoin does 7-10 transactions per second.||Dogecoin does around 33 transactions per second.|
|Transaction fee range||Bitcoin’s average transaction fees are around 1.543 USD.||Dogecoin transactions fee range is US$0.24 per average transaction.|
|Block confirmation time||Bitcoin counts its new block confirmation after 10 minutes.||Dogecoin is faster than Bitcoin it just takes 1 minute to confirm a block.|
|Block reward||When bitcoin was initially created in 2009, each block reward was worth 50 bitcoins. In May 2020, the block reward was cut for the third time, to 6.25 BTC.||Doge coins Block reward is around 10000 Doge per block.|
|Special Features||Bitcoin is Native a coin i.e. The built-in digital currency of a blockchain.||DOGE coin is a Altcoin i.e.|