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Dogecoin (DOGE) vs Bitcoin (BTC): Which Is Better to Invest in 2024?

James King -

Bitcoin (BTC), the first cryptocurrency to be publicly available, was launched in 2009. Since then, thousands of other cryptocurrencies have emerged. Over the years, Bitcoin has appreciated tremendously. We all have read stories about early Bitcoin investors that hit big on this digital asset. However, other cryptocurrencies have gained value at even faster paces than the coin created by Satoshi Nakamoto. That’s the case with Dogecoin (DOGE).

Dogecoin had a meteoric surge in 2021. Hype, the endorsement by some celebrities, and the support from its strong community propelled this coin’s price to unexpected highs.

Both coins dropped in value in 2022, and these constant collapses were fortified by the war, complex economic situation all around the world, surging inflation rates, and other factors that sent the entire financial sector, including crypto, to the bottom.

How does Dogecoin compare with Bitcoin? What are their differences? Do they have similarities? Let us discuss it in our current Dogecoin vs Bitcoin comparison.

Dogecoin (DOGE) Overview

Billy Markus and Jackson Palmer, two software engineers, created Dogecoin in 2013. This cryptocurrency is a fork from Litecoin (LTC) and was meant to be a fun and light-hearted cryptocurrency. They chose the “Doge” Internet meme as the logo of this coin, featuring a Shiba Inu dog. Dogecoin is primarily used for tipping users on Reddit and Twitter. To a lesser extent, Dogecoin is accepted as a payment method by a few merchants worldwide.

Technically, Dogecoin uses a proof-of-work (PoW) consensus mechanism known as Auxiliary Proof of Work. Litecoin miners can also mine Dogecoin at no additional cost. However, the mining difficulty increased enormously within the first day of the coin’s release. As a result, mining DOGE with a regular CPU or GPU is no longer profitable. One block is mined every minute on the Dogecoin network. Dogecoin has no supply cap.

As per CoinMarketCap, Dogecoin is the #12 most valuable cryptocurrency by market capitalization. This cryptocurrency set its all-time high price on May 8, 2021, at $0.7376. In 2021, this cryptocurrency had a price increment of +4,137%. At the time of writing, DOGE trades at $0.077 per coin.

Bitcoin (BTC) Overview

A whitepaper published in 2008 described a peer-to-peer (P2P) decentralized payment system. The author was a person (or a group of people) named Satoshi Nakamoto. The following year, the decentralized payment system described by Nakamoto was launched with the name of Bitcoin. This system was the first cryptocurrency ever to exist.

According to Nakamoto’s vision, Bitcoin would enable online payments directly between two parties without the need for a financial institution. Bitcoin uses a PoW consensus mechanism, and one block is created every ten minutes on average. Mining Bitcoin is highly energy-demanding and is not profitable with regular computers.

Bitcoin is the most valuable cryptocurrency by market capitalization. The maximum supply of this digital asset is 21 million BTC coins. Bitcoin set its current all-time high on November 10, 2021, at $68,789.63. Although Bitcoin has gained value tremendously over the years, the BTC price increased by +95% in 2021. At the time of writing, Bitcoin trades at $36,656.37 after experiencing an alarming depreciation since the beginning of 2022. Yet, Bitcoin is still regarded as a safe investment in the crypto world and a safe hedge against inflation.

What Are the Differences between Dogecoin (DOGE) and Bitcoin (BTC)?

The most obvious difference between Dogecoin and Bitcoin is the maximum supply. For Dogecoin, there is an unlimited supply of coins, which keeps the price of DOGE low. In contrast, Bitcoin has a limited supply.

Another big difference between these cryptocurrencies is the block time. On the Dogecoin network, one block is created approximately every minute. On the other hand, a new Bitcoin block is created roughly every ten minutes. For every Dogecoin block, miners get 10,000 DOGE coins as a reward. Currently, Bitcoin gives 6.25 BTC as a reward per each block.

The Dogecoin network can process 30 transactions per second. Bitcoin can process only seven transactions per second. Dogecoin uses Scrypt for encryption, whereas Bitcoin uses the SHA-256 algorithm.

Bitcoin was the first cryptocurrency available. This position has allowed it to create a large following that has made it universally accepted as a payment method. On the other hand, Dogecoin is not even close to the acceptance and popularity of Bitcoin.

Also, Bitcoin has a well-defined roadmap that has allowed it to develop the necessary infrastructure over the years. There are Bitcoin ATMs, and practically any crypto exchange lists Bitcoin for trading. For its side, Dogecoin does not have a roadmap. Well, it doesn't even have a whitepaper.

What Are the Similarities between Dogecoin (DOGE) and Bitcoin (BTC)?

Dogecoin is a version of Luckycoin, a cryptocurrency forked from Litecoin. Since Litecoin is a fork from Bitcoin, some similarities between Dogecoin and Bitcoin exist. The biggest similarity is the consensus mechanism, PoW, for both cryptocurrencies. Hence, the mining process is practically the same for Dogecoin and Bitcoin.

Pros and Cons of Bitcoin BTC)

Some of the major advantages of Bitcoin are:

  • No banking fees
  • User autonomy
  • Peer-to-peer transactions
  • Discretion and security
  • Low international transaction fees
  • Payment mobility
  • Hedge against inflation
  • Transparent and open-source.

However, this cryptocurrency has some cons also, some of which are:

  • Environmentally unfriendly
  • Lack of scalability
  • Price volatility.

Pros and Cons of Dogecoin (DOGE)

When compared to Bitcoin, Dogecoin offers several advantages such as:

  • Faster and cheaper transactions
  • No scalability problems
  • An active and engaged community
  • Low price per coin, allowing investments with little capital.

But Dogecoin has its cons, some of which are:

  • Poor technical support
  • Lack of a roadmap
  • Extremely high price volatility
  • Price is driven mainly by marketing and not by technological innovation.

In Which Cryptocurrency You Should Invest?

As seen, Dogecoin and Bitcoin have their pros and cons. Both cryptocurrencies have yielded excellent returns to early investors. In 2021, Dogecoin went from a little less than $0.001 to a whopping $0.7376. However, an important thing to notice is that this impressive price surge resulted from Elon Musk’s endorsement via a few tweets. In contrast, price surges of other cryptocurrencies (including Bitcoin) result from technological innovation. Therefore, it is uncertain whether we will see a second DOGE price surge.

Also, new DOGE coins are continuously created, thereby devaluating this cryptocurrency over time. In contrast, BTC coins will likely increase their value because of scarcity. Demand will also drive the BTC price, but the limited supply opens the possibility for future price surges. Considering these factors, some investors regard Dogecoin as a good short-term investment, whereas Bitcoin is more suitable for long-term investment.

Whatever these two coins you choose for an investment, you can purchase them on LetsExchange.io. Our platform allows swapping more than 4,000 coins and tokens for DOGE or BTC. It is easy, fast, and secure. Moreover, you can transact without registration.

FAQ

Is Dogecoin Better than Bitcoin?

Technically, Dogecoin has several features that make it better than Bitcoin. For example, Dogecoin allows for faster and cheaper transactions. Also, Dogecoin is more environmentally friendly. As an investment, Bitcoin is more robust and safe for the long term.

Is Dogecoin Safer than Bitcoin?

Not as an investment. Dogecoin suffers from extreme price volatility. Moreover, Dogecoin does not have a well-defined roadmap, so it is difficult to predict its future. Bitcoin is widely regarded as a safer investment and an effective hedge against inflation.

Disclaimer

Please keep in mind that the above information is based exclusively on our observations and is provided for informational purposes only. It doesn’t constitute any kind of financial advice nor represents an official forecast. Cryptocurrency is a highly volatile asset, and you are investing in it at your own risk.

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