The surging popularity of meme coins has created a wide shift in the investment approach of people, with many opting for meme coins over bitcoins and other altcoins. However many investors are concerned about which crypto to invest in and the major among are Bitcoin and Dogecoin.
This article offers a broad comparison between Bitcoin and Dogecoin allowing you to choose the one to invest in the coming years.
Table of Content
- What is Bitcoin?
- What is Dogecoin?
- Bitcoin v/s Dogecoin, which to invest in?
- Final Analysis
What is Bitcoin?
Bitcoin is the first and largest cryptocurrency known. Launched in 2009 by Satoshi Nakamoto, the platform enables peer-to-peer transactions without the need for a third party. With a capped supply of 21 million coins, Bitcoin offers transparent and secure transactions. The coin is mainly used as a store of value and online payment method.
Features of Bitcoin
Bitcoin offers numerous unique features making it one of the most popular cryptocurrencies since its launch.
- Decentralization: Bitcoin operates on peer to peer network, eliminating the need for an intermediary to control and monitor transactions within the platform. Transactions are verified using cryptography techniques and are recorded in the blockchain ledger.
- Anonymity: The transaction data are visible and trackable to all the participants of the platform. However, users are represented using their wallet addresses, making their identity private.
- Security: Bitcoin transactions can be viewed by all the members of the blockchain and the data are immutable, making it difficult for hackers to make unauthorized changes. Once the data is entered, it can’t be reversed or removed preventing anyone from stealing and duplicating the coins.
- Low Transaction Cost: Being operating in a decentralized platform that doesn’t rely on intermediaries for assisting the transaction process, Bitcoin transaction costs are low. In addition, Bitcoin investments are free from tax.
Limitations of Bitcoin
Bitcoin investments come with certain risks, creating limitations for investing in the platform.
- Volatility: Not just Bitcoin, every cryptocurrency is subject to volatility risks. The volatility of the market depends on limited supply, increasing demand, and investor greed.
- Lack of Regulations: Bitcoin works on a decentralized platform, with no central authority to control the functionalities. The platform is not legally protected, making it difficult to solve any associated scams.
- Irreversible: Once the transaction is processed, it can’t be undone or reversed. An unknown or accidental payment can result in the loss of the money.
What is Dogecoin?
Dogecoin is a meme coin produced as a parody of cryptocurrency. Launched in 2013 by Billy Markus and Jackson Palmer, featuring a Shiba Inu dog from an internet meme, the coin is utilized for online transactions and charity.
With an annual cap of 5 billion, Dogecoin has gained mass appeal and become one of the top meme coins. The coin’s popularity is attributed to popular endorsements including the Tesla owner, Elon Musk, who called himself the father of Dogecoin.
Features of Dogecoin
- Inflationary Model: Dogecoin is not capped, every year 5 billion Dogecoin are released. The unlimited availability of the coin promotes increased circulation in the crypto market.
- Low Transaction Cost: The transaction cost for Dogecoin is much less than cryptocurrencies like Bitcoin and Ethereum, making the coin a viable alternative to cryptocurrencies.
- Strong community: The main strength of Dogecoin is its active and strong community. A month after the launch, the platform was visited by more than a million meme enthusiasts. Apart from that, the coin holds a strong community on Twitter and Telegram.
Limitations of Dogecoin
- Lack of Development: Since its launch, the platform has been compared with other cryptocurrency’s development features. It doesn’t focus on development updates. The platform lacks many advanced technologies and does not adapt innovative features.
- Market Sentiments: As the coin offers no utility, its value lies in social media trends and endorsements. When the trend fades, the value of the coin declines.
Bitcoin vs Dogecoin, Which to Invest In?
This comparison section covers all the features of the coin giving an insight to choose the right one to invest. We cover utility, price history, inflation, supply rates, security, and the number of transactions.
1. Utility
Utility is the purpose served by the coins.
Bitcoin
Bitcoin allows peer-to-peer transactions eliminating the need for an intermediary. It is used as a long storage value and online payment method. The coin is a viable alternative to fiat currency working as a tool against inflation.
Dogecoin
Dogecoin is created as a fun coin whose value depends on community involvement and social media trends rather than financial use cases. Being a meme coin, they are highly volatile and largely speculative. It is mainly used for charity purposes and online transactions.
2. Price History
Evaluating the price history helps to determine the rate of volatility of the coin and the future price predictions.
Bitcoin
The volatility of Bitcoin has shown a trajectory path, indicating long-term growth. From $0.00099 during the launch to $100,693.30 as of 12 December 2024. The price chart shows stability and value appreciation, showing significant growth potential in the coming years.
Dogecoin
Dogecoin has undergone severe price fluctuations and peaked in 2021. However, the subsequent price hikes failed to achieve previous peaks. The coin had a price value of $0.000513 during its launch in 2013 and now the value increased to $0,42 as of 12, December 2024. The shaking movements show an advantage for short-term investors, however in the long run, the value may steep or attain huge heights.
3. Supply
Supply is the total amount of coins produced and available in the market.
Bitcoin
Bitcoin supply is capped at 21 million, which means it won’t produce more coins. This results in scarcity of the coin with an increase in demand and hence the price.
Dogecoin
Dogecoin produces 5 billion coins every year and their supply is not limited. This increases the circulation of the coin and meets the demands of the users over time.
4. Security
A secure platform prevents hacks and scams.
Bitcoin
Bitcoin works on a Proof-of-Work consensus mechanism. The extensive network model keeps the platform secure from potential risks like hacks and scams.
Dogecoin
Dogecoin also works on a Proof of Work consensus mechanism. However, it is not as secure as Bitcoin due to a lack of technical advancements.
5. Rate of Transactions and Cost of Transaction
The rate of transactions represents the number of transactions conducted within a second. It helps to analyze the performance of the platform.
The cost of transactions is the amount required to transfer a cryptocurrency.
Bitcoin
Bitcoin performs seven to ten transactions per second. The cost of one transaction is $1.543.
Dogecoin
Dogecoin performs around 33 transactions per second. The cost for a single transaction is $0.24.
Final Analysis
Investing in Bitcoin or Dogecoin is a personal choice of individuals depending on the factors they prioritize. However, for a long-term investment, Bitcoin is the better option as it showcases stability and cost appreciation. On the other hand, Dogecoins are speculative investments, value fluctuates on community sentiments and social media trends, making it a better choice for short-term investment.