Dogecoin vs. Bitcoin: What’s the Difference?

Dogecoin began as a joke. Jackson Palmer and Billy Markus founded it in 2013.

Doge was established to ridicule the many altcoins that arose in the aftermath of Bitcoin's surge. The coin depicts a Shiba Inu, a famous Japanese dog breed in social media memes.

In its first year, Dogecoin demonstrated that bad press is still good press. A Christmas Day hacking of millions of dogecoins sparked a cryptocurrency sensation on Twitter. This increased cryptocurrency awareness and unwittingly legitimized it.

Following that, Dogecoin began to trend on TikTok. Influential social media users encouraged their followers to buy it. A single TikTok challenge caused a 600% price increase.

Dogecoin was worth half a cent per coin by the end of 2020. Since then, Dogecoin has been encouraged by its most ardent backer, Tesla creator Elon Musk.

Musk's backing pushed Dogecoin up to 70 cents per coin. Mark Cuban and Snoop Dogg are two other famous endorsers.

What Are Dogecoins Prospects？

Dogecoin is a risky cryptocurrency. Investors should brace themselves for violent up and down swings.

These ups and downs are rarely based on anything significant. There are no earnings reports or sales numbers to warrant a market capitalization increase.

A surge is typically associated with a favorable news development or some form of social media effort. Many investors are looking for information on Dogecoin on Reddit.

A few affluent investors own a sizable portion of the current Dogecoin supply. If they decide to sell and profit, the price of Dogecoin would undoubtedly plummet dramatically.

Having said that, Dogecoin is quickly becoming more widespread. A increasing number of large corporations are taking Dogecoin as payment.

Dogecoin is accepted as payment by the Dallas Mavericks, a professional basketball franchise. Dogecoin is also accepted by 48 other large merchants and businesses.

What Is Bitcoin？

Bitcoin is the world's most popular cryptocurrency. It has the highest market capitalization of any cryptocurrency.

It reached a record value of over $65,000 per coin in April 2021. Countries are increasingly starting to accept Bitcoin as an official government form of money.

Bitcoin has the most industry credibility of all the many types of cryptocurrencies. Bitcoin adheres to a standard akin to the old gold standard.

This is due to the market's restricted supply of Bitcoin. The maximum supply of bitcoin is 21 million. The same is true of the gold standard, when the value of the dollar was tied to gold reserves.

Bitcoin and other cryptocurrencies are regarded as a form of insurance against centralized government currencies. Many investors are looking for a non-centralized currency alternative.

This is due to central governments generating money that is not linked to something like gold. The technique of creating paper money is considered unsustainable.

Volatility and risk are inherent in all cryptocurrencies. Bitcoin is the least hazardous of the several cryptos available. This is partly because Bitcoin is more established and widely recognized as a form of payment than the other varieties.

What Are The Differences Between Dogecoin And Bitcoin？

One of the primary distinctions between the two types of cryptocurrencies is supply. Dogecoin's coin supply is infinite. Because there is no cap, the coin can inflate indefinitely without being bound to anything.

Bitcoin, on the other hand, has a limited supply. Each Bitcoin is mined using a unique procedure.

Blockchain technology underpins Bitcoin. This is a safe and decentralized ledger that keeps track of every transaction. A set of transactions is known as a block.

Miners must solve complicated mathematical problems online in order to add new Bitcoins. It necessitates a strong infrastructure with powerful computers and a high electrical demand.

This mining procedure is exclusive to Bitcoin. While each cryptocurrency has a technique for manufacturing fresh supply, Bitcoin is the most energy-intensive. A Bitcoin transaction takes longer to process than a Dogecoin transaction.

Dogecoin is less widely acknowledged as a real form of currency than Bitcoin. Professional athletes are signing contracts that include Bitcoin as a payment method. There are Bitcoin ATMs that allow users to convert Bitcoin to cash and vice versa.

Another significant distinction is the infrastructure that underpins Bitcoin. Bitcoin has well-defined procedures, from coin mining to eventually replacing existing forms of currency. From the standpoint of stability, this is a plus.

However, Bitcoin has its detractors when it comes to the environment. Bitcoin mining consumes a tremendous amount of electricity.

Bitcoin mining, in particular, contributes to climate change by emitting carbon dioxide (CO2). According to one analysis, the Bitcoin network consumes as much energy as the entire country of Argentina.

Bitcoin supporters, on the other hand, argue that mining activities only employ renewable resources. The possible environmental impact is a significant distinction between dogecoin and bitcoin. There are no environmental risks related with the cryptocurrency because no new dogecoin is mined.

As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!