Cryptocurrency has been making the top headlines for several months now. There are words about how investors are hitting hard on cryptos. Most interestingly, there are millions of worldwide investors who have already had invested in Bitcoin. Moreover, many reliable online crypto trading platforms are places to trade in cryptos, such as Bitcoin Loophole App.
So, if you are certain that you want to invest in crypto, here’s a detailed article on the meaning and difference between Bitcoin vs. Dogecoin. Let’s get started.
Overview of Dogecoin
Coming to talk about the history of Dogecoin, the cryptocurrency was first known to be invented by Billy Markus and Jackson Palmer in 2013. The coin features Shiba Inu; you may have noticed a Japanese dog in social media memes. The biggest example of bad press is still good press in the first year. The joke bought massive awareness about the cryptocurrency world among investors. Eventually, at the end of 2020, Dogecoin was traded for half a penny per coin. Thanks to the support of Elon Musk.
Overview of Bitcoin
Next comes the world’s most popular form of cryptocurrency, i.e., Bitcoin. This form of cryptocurrency ranks at the top of the list in the top most popular cryptocurrencies. Not to mention it also has the largest capitalization of all cryptos. In addition, it is also referred to as digital gold since there is only a limited supply of Bitcoin tokens, i.e., around 21 million. The scarcity in the number increases the demand and potentially drives up the price.
Differences Between Bitcoin vs. Dogecoin
Cryptocurrencies do not have many purposes, and each contributes to a different element in the crypto world. Here are some key differences that separate Bitcoin from Dogecoin. Know them to decide which one will be right for your investment:
As per the estimation of the market capitalization of both cryptos, it includes the total extant coins into the current trading price, and a wide gap exists. Bitcoin has the largest market capitalization, whereas Dogecoin ranks in the top 10 in the list. Although both Bitcoin and Dogecoin are popular amongst the crypto traders, Bitcoin is the one that has emerged to be mainstream.
Another important difference is how many coins can be an issue in a particular cryptocurrency. Most traders like to deal in Bitcoin because it has a hard limit on the issuance, up to 21 million. As the flow of Bitcoin continues and the limit is fixed, the demand rises, which eventually ensures a rise in price in the future.
On the other hand, Dogecoin is unlimited as it is a part of a satire joke. However, the unlimited issuance factor of Dogecoin has not held back the currency to skyrocket in 2021.
Bitcoin vs. Dogecoin- Which One Should You Choose?
Considering that Dogecoin and Bitcoin both have their pros and cons, there is no definite answer to which one you should choose. However, to understand it for yourself, it is important to consider that Bitcoin and Dogecoin have yielded outstanding returns on investment despite the price difference. In 2021 the later crypto jumped from the evaluation of $0.001 to $0.68, providing early profits to its investors. However, the jump was due to the word of mouth of Elon Musk. The price did not increase due to some technological advancements.
Looking at the price history of the two projects, Dogecoin is more of a short-term investment, whereas Bitcoin is a long-term investment. Moreover, some people see Bitcoin as a replacement for cash and Dogecoin as a store of value. The shocking part is that the mantra has profited off them in both cases. However, the situation can flip at any time. It all depends on future news and developments.
To sum up, Dogecoin and Bitcoin dominate the news headlines in the investment world. While there are major differences between the cryptocurrencies, the traders sometimes get confused in deciding which one will be best for them to trade-in.
While Bitcoin is making hot topics, other cryptocurrencies are also making waves, and one such cryptocurrency is Dogecoin. However, not all cryptos are the same. Each has its advantage and disadvantages. In this situation, it would help if you knew their key differences and chose one to trade in accordingly. Happy crypto investing!