When we come to talk about the concept of cryptocurrency trading, Bitcoin is still matchless; no other forms of cryptocurrency can match in to Bitcoins. Post entering as a torchbearer in the crypto-market post the economic slowdown in 2008, Bitcoin has had a wonderful journey, full of surprises with a lot of ups and downs.
With Bitcoin’s wonderful journey, there came more competitors of Bitcoins in the crypto world. One such name is dogecoin, which is nothing but a crypto made in the form of meme by two software engineers named Billy Marcus & Jackson Palmer. Day trading Bitcoin provides lots of money-making opportunities for traders and investors. In this article, we will talk about the similarity and dissimilarities between Bitcoin and Dogecoin.
Availability & Pricing
Primarily from availability perspective, the bitcoins are scarce today, where as there is an purposeful abundance of dogecoin. It may sound surprising but true that almost 10000 dogecoin are mined per minute and there is no limit to it
Additionally, though it started as a ‘meme coin’ initially, the year 2021 saw a revamp of dogecoin in terms of market capitalization; though the price of an individual dogecoin cost around a penny! In this context, we must mention that bitcoin was able to reach an all-time high of $68789.63 in 2021, though the current price of bitcoin hovers around $42000. Therefore, there is a solid difference as far as the pricing is concerned.
When bitcoin was introduced in the market, it came as an alternate medium to the traditional banking system where there is cost that consumers have to bear for the governing authorities or the middle men. This is because of seamless and secured mode to transaction and dealing of the money. Now, being a crypto it is very important that the security is not a worrying factor. Bitcoin has proved its worth with more than a decade run already with so many ups and downs in its journey.
On the other hand, as far as Dogecoin is concerned, the inception year 2013 itself saw a hack! In this terrible incident, a hacker was able steal 11 million from dodgewallet, which was nothing but a third party dogecoin platform. Now, this kind of incident do not send a positive vibe to the larger consumer base and investors for sure! This is a separate case that out of generosity, the dogecoin community donated a doge amounting to much more compared to what was stolen.
As far as the accessibility is concerned, there are various aspects where one can find differences. For example, going by the encryption bitcoin and Dogecoin uses SHA256 & Scrypt respectively. Again, against the unlimited market supply of the dogecoin, bitcoin is capped to a supply of 21 million coins only.
If you are going by the transaction rate, Bitcoin is capable for 7 transactions per second; on the contrary with doge coin there could me 33 transactions made per second! Well, if you go by the block confirmation time, Bitcoin takes lesser time compared to dogecoin; bitcoin’s block confirmation time is 1 minute, whereas the block confirmation time for dogecoin is 10 minutes.
In spite of so many differences, both bitcoin and dogecoin both have similar proof of work method of consensus for the miners.
In short, in spite of being a meme coin to bitcoin, both bitcoin and dogecoin have many dissimilarities; in this regard we must understand that bitcoin will always be in an advantageous situation with regards to its meme version.