Bitcoin vs. Dogecoin – Put that away, your dollars are no good here!
Unless you’ve been living under a rock at the bottom of the sea, you’ve heard the word “cryptocurrency” by now.
You might have also heard there’s a Bitcoin vs Dogecoin debate happening.
Maybe you already know a little bit about Bitcoin. Maybe you know Satoshi Nakamoto released it as a response to the 2008 global financial crisis. Maybe you’re looking around in 2022 at all the rising inflation and economic uncertainty and you’re worried your dollars won’t carry much weight soon.
Is it time to give cryptocurrency another look? Wait, what is Dogecoin? Why are there so many coins? I just want to buy a coffee, why is there so much to learn?
When you do a little research, learning about Bitcoin vs Dogecoin isn’t too worrisome.
Fortunately, we’ve done the research legwork for you. Keep reading to learn some major key differences between Bitcoin and Dogecoin.
One of the first things you learn when answering the question, “what is Bitcoin?” is that Bitcoin’s supply is capped at 21 million coins. But that limited supply is a good thing – as a currency becomes more scarce over time, demand for it also increases.
This is a feature unique to Bitcoin. It’s what makes it a “deflationary” currency. It’s why many investors are taking their chances on Bitcoin as view it as a hedge against inflation.
Dogecoin, on the next hand, has an unlimited supply.
Investors often call Dogecoin a “meme coin.”
In 2008, a rescue Shiba Inu named Kabosu took the internet by storm with her signature facial expressions. Cut to a few years later, and you can buy Dogecoin – a golden coin with her face on it.
Bitcoin has longer transaction times than Dogecoin. This is because they each use a different method to validate transactions on their networks.
Bitcoin uses the unbreakable SHA-256 encryption standard while Dogecoin uses the faster but far less secure Scrypt standard.
Cryptocurrency in general is volatile. Despite that volatility, Bitcoin experiences a far wider mass adoption than Dogecoin.
Bitcoin’s all-time high sits near $60,000, while Dogecoin sits at 70 cents. Both are currently nowhere near their former all-time highs, and yet entire countries are starting to hop on the Bitcoin train.
In 2021, El Salvador was the first country to adopt Bitcoin as a currency. You don’t have to go far in El Salvador to see people using Bitcoin to make everyday transactions, and soon the rest of the world might catch on.
You can already find ATM locations in the U.S. and buy Bitcoin on the street. Does this mean a crypto tsunami is coming soon?
Probably not, but it’s worth paying attention to.
You’ve read through the key differences and taken a look at the Bitcoin vs Dogecoin debate. Fortunately, you don’t have to Select one or the other. Many investors have a large portfolio of different coins.
The other time you see a Bitcoin ATM in the wild, maybe you’ll consider trying one of these new investment opportunities.
Did you like this breakdown of the major differences between Bitcoin and Dogecoin? Be sure to read more about cryptocurrency in the finance section of our blog.
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