Dogecoin vs. Bitcoin: Which one is better for you? | OWNR Wallet
Over the last several years, the world has gradually embraced the new digital or crypto economy, which is growing at an extraordinary pace. However, as the crypto industry evolves, various unique trading digital currencies have emerged in the online currency market, offering some incredible returns.
Although many people have started investing in many digital currencies, only some recognize the differences between Dogecoin and Bitcoin and which is the better option. In this article, let’s take a deeper look at all there is to know about Dogecoin and Bitcoin so that you can make an informed decision before investing your money.
What is Dogecoin?
Dogecoin (DOGE) is an open-source, peer-to-peer cryptocurrency that was created as a parody of the cryptocurrency market after the creation of Bitcoin. It began as a lighthearted joke for crypto geeks, but it quickly grew to become one of the most popular cryptocurrencies being used today.
Markus and Palmer, its founders, did not plan for Dogecoin to be considered legitimate based on the "Doge" meme, which depicts a Shiba Inu dog. Markus wrote on Reddit recently that it was "created for sillies." "I just threw it together with no expectations or plans. It took about three hours to complete”, he said.
As an outcome, Dogecoin suffers from a lack of technological innovations and is not as safe as Bitcoin. Markus was amazed by how fast the Dogecoin community evolved over the years, as it connected over a mutual love of the Shiba Inu dog meme and the cryptocurrency recently exploded after social media attention from the likes of Musk and Mark Cuban.
Dogecoin: Main features
Dogecoin, like other digital currencies, has no maximum supply. Miners earn 10,000 DOGE per block, which is generated every minute. It entails the production of 14,400,400 new DOGE tokens each day that is later offered for sale or saved in miners' wallets.
However, most Dogecoin wallets have a massive portion of DOGE in circulation, which poses a risk because they have excessive authority over price volatility and market liquidity. Decentralization is part of the safety that governs most cryptocurrencies, which means that security is in the hands of a global community of users.
What is Bitcoin “(BTC)”?
Bitcoin (BTC) was one of the earliest digital currencies to emerge in recent years. It is the most popular cryptocurrency and was launched after the publication of Nakamoto's white paper describing a blockchain currency in January 2009. It is now an internationally exchanged financial asset with daily transactions worth tens of billions. In comparison to other cryptocurrencies, Bitcoin has a fixed supply of 21 million coins.
BTC Blockchain is decentralized, meaning no one needs to control or own it. Instead, the Bitcoin network comprises volunteers (reportedly 80,000) who run open-source software on their computers known as nodes. All Bitcoin transactions are documented on a public ledger known as Blockchain.
Bitcoin: Main Features
Proof-of-work (PoW) consensus secures Bitcoin and its ledger, as well as the "mining" process that adds new Bitcoins into the system. Its history as a monetary asset has been turbulent, with several cycles of boom and bust during its brief existence. Being the first decentralized virtual currency to achieve widespread recognition and success, Bitcoin has spawned a slew of other digital currencies in its wake.
Bitcoin is relatively simple to grasp as a type of electronic currency. If one owns Bitcoin, users can use their cryptocurrency wallet to send relatively small amounts of Bitcoin as payment for products or services.
Where can I buy Bitcoin?
Bitcoin can be bought through several crypto exchanges, including OWNR Wallet. With OWNR Wallet, buying assets with your card is a matter of just a few clicks. Virtual currencies can be sent, received, withdrawn, exchanged, and purchased worldwide using this service.
The best part about OWNR Wallet is that only you can access and control your assets, making it a reliable platform to get Bitcoin. Download the OWNR Wallet app and sign up to buy Bitcoin.
Dogecoin vs. Bitcoin: What are the key differences?
- Creation: Bitcoin was developed in 2009 to be used as a digital currency or stored for value. On the other hand, Dogecoin was created as a joke. Both currencies hold an advantage as being the first to enter the crypto market.
- Value: Bitcoin has a market cap of about $382 billion, while Dogecoin has a market cap of $8.2 billion. Bitcoin is far more expensive than Dogecoin but both coins go through fluctuations from time to time. Both coins are expected to have stable growth with excellent investment potential.
- Supply and Growth: Bitcoin has a limited supply representing the finite amount of physical gold. The total number of Bitcoins which can be obtained (mined) is limited to 21 million. On the other hand, there is no supply limit for Dogecoin because it does not have a cap. However, there is a reward of 10,000 DOGE for every transaction block introduced to the Dogecoin blockchain.
- How it works: Bitcoin and Dogecoin are based on a shared digital ledger known as a blockchain. As the title suggests, Blockchain is a connected body of data made up of units known as blocks that contain information about each transaction, such as date and time, total amount, purchaser, and a uniquely identified code for each interaction. Entries are linked in sequential order to form a digital chain of blocks.
- Purpose: Bitcoin was developed to allow individuals to send digital money. The digital currency was designed to be a non-centralized payment method that could be used the same way traditional currencies could. On the other hand, Dogecoin is also used for day-to-day transactions. Investors also go for long-term investments in both currencies.
- Mining: The process of adding new transactions to the Bitcoin blockchain is known as mining. Bitcoin and Dogecoin miners employ proof of work (PoW), utilizing computers in a contest to solve complex math problems that verify transactions.
- Transaction speed: Dogecoin has a transaction per second (tps) rate of approximately 33, whereas Bitcoin has a rate of roughly 7 tps. Dogecoin is a relatively faster mode of payment for day-to-day payments.
- Transaction fees: The average Bitcoin transaction fee as of August 23, 2022, is 0.000044 BTC, or USD 0.957. On the other hand, the standard price for sending a Dogecoin transaction is 0.0025 DOGE, but this can vary depending on the circumstances of payment and network situations.
- Block time: The duration of time it takes to transfer cryptocurrencies is influenced by block times. Bitcoin transactions can take up to 10 minutes, whereas Dogecoin's target block time is 1 minute.
- Smart contracts: Smart contracts are programs that run when certain conditions are met and are stored on a blockchain. Taproot, a significant upgrade to Bitcoin, was launched in November 2021. By increasing Bitcoin's versatility and confidentiality, it helped facilitate smart contracts on the Bitcoin blockchain. It also decreased the size of smart contracts on the Blockchain. On the other hand, Dogecoin cannot engage with smart contracts directly because it functions on its chain.
Comparison Table: Dogecoin vs. Bitcoin
|Number of Coins
|Maximum Number of Coins
|Unlimited (Yearly 5 Billion
Bitcoin “(BTC)”: Pros and Cons
Advantages of Bitcoin
- Low Transaction Costs: Users must keep the BTC client running and linked to other nodes to send and receive Bitcoin. Primarily, by using Bitcoin, users contribute to the system and thus share the responsibility of transaction authorization. Sharing this work significantly reduces transaction costs, making them minimal.
- Unable to Track: Nobody can track transfers back to users unless they make their wallet addresses public. Only the wallet owners will know however many Bitcoin they possess. Even if the wallet address has been made public, creating a new one is extremely simple. This significantly increases privacy compared to conventional currencies, where service providers may have access to individual financial data.
- No Charge Backs: Once a Bitcoin has been sent, it cannot be reversed. Because the ownership address of Bitcoins will be changed to the new owner, it is impossible to reverse the change. Only the holder has access to the associated private key so that they can change ownership of the coins. This eliminates any risk associated with receiving Bitcoins. Disadvantages of Bitcoin
- Wallets Can Be Crashed: If a hard drive fails or a virus corrupts data, and the wallet file becomes corrupted, Bitcoins are effectively "lost." There is nothing that can be done to get it back. These coins will be orphaned in the system for all time. This can bankrupt a Bitcoin investor in seconds, and there is no way around it. The investor's coins will also be indefinitely orphaned.
- Deflation: Because the maximum number of Bitcoins is limited to 21 million, deflation is inevitable for Bitcoin owners. As the total number of Bitcoins reaches its limit, each Bitcoin will become increasingly valuable. Early adopters will be rewarded under this system. As the value of each Bitcoin increases with each passing day, the question of when to spend becomes critical. This could cause spending surges, causing the Bitcoin economy to fluctuate rapidly and unpredictably.
- Lack of Valuation Guarantee: Nobody can guarantee Bitcoin's minimum valuation as no centralized entity controls it. If a large number of traders decide to "dump" Bitcoins and quit the system, the value of Bitcoins will plummet, severely affecting users who have substantial capital invested in Bitcoins. Bitcoin's decentralized nature is both a blessing and a curse for investors.
Dogecoin “(DOGE)”: Pros and Cons
Advantages of Dogecoin
- Stable Investment: While Dogecoin's fame has waned since Elon Musk praised the currency, it still has a large and dynamic community. Demand keeps rising, and the price remains stable and might increase in value, making it a safe bet among hundreds of other cryptocurrencies.
- Easy to Mine: Since mining Dogecoin is simpler and faster than mining Bitcoin, it's a far more accessible digital currency. You can also generally earn more Dogecoin mining than one would from other cryptocurrency faucets.
- Unique Market Positioning: DOGE's inflationary position, distinctive mining feature, and connections to Litecoin are all thought to be unique by many investors. However, Dogecoin's mining framework is centered on proof-of-work, which implies computationally intensive problems must be solved to verify transactions across the Blockchain.
Disadvantages of Dogecoin
- No Supply Cap: The lack of a cap on the amount of Dogecoins in circulation might be creative, but it is also one of the currency's significant flaws, keeping its value low. Because of its higher inflation rate, investors do not anticipate the coin's worth to rise dramatically over time, restricting profitable opportunities.
- Smaller Team: Dogecoin has a substantially smaller team than Ethereum, Bitcoin, and other huge cryptocurrencies and hasn't been upgraded or significantly changed since 2015. On the one hand, this provides investors with some consistency; on the other hand, it can be challenging to obtain assistance if any problem occurs with one’s Dogecoin wallet.
- Prone to Pump and Dump Schemes: Many cryptocurrencies are highly susceptible to 'pump and dump schemes, which are nothing new. Regrettably, Dogecoin's origins and association with meme culture have made it a persistent target for those employing this tactic.
What makes Bitcoin and Dogecoin similar?
The source code of Dogecoin is remarkably similar to those of Bitcoin. On that front, both of these cryptocurrencies share a lot.
Both of these coins use the proof-of-work (PoW) consensus algorithm. In simple terms, PoW is a method of verifying transactions, introducing additional transaction blocks to the chain, and mining more coins.
The task of generating a hash (or a long string of characters) that fits the target hash for the current block is referred to as "work" in PoW. The miner that discovers this hash first earns the right to add the said block to the chain and receive block benefits.
Bitcoin and Dogecoin have 2 prominent use cases: value exchange and value storage. To look at it another way, users can use both to make purchases at crypto-friendly vendors who accept BTC and DOGE. Likewise, users can invest in them and keep them for some time in the hope of profiting as their respective values rise in the future.
What should I buy? Dogecoin or Bitcoin?
If you're looking to trade cryptocurrencies, you should know they're all different. Some characteristics, like Bitcoin's limited issuance, may make a cryptocurrency more appealing than others, at least over time.
However, cryptocurrency is influenced by sentiment in the short term, so even if it is something produced as a joke or with unrestricted issuance may rally strongly if a wave of interest sweeps in. We recommend that you research both cryptocurrencies and make an informed decision about investing your earnings into a digital currency.
Dogecoin vs. Bitcoin: What is better at the end?
Despite rising to be one of the top ten digital currencies by market valuation (based on price swings), Dogecoin remains a meme coin. Remember, it began as a joke nearly 10 years ago, and very little has changed since then, aside from some celebrity endorsements and just a brief 15-minute hype period.
Because of its faster verification time and reduced fees, cryptocurrency traders who want to make several limited, frequent transactions may favor Dogecoin over Bitcoin. Still, Bitcoin Lightning also continues to work for this purpose. Bitcoin holds a significant advantage over Dogecoin in terms of the inflation rate and mining, but the final decision is up to investors.
Which one is better Bitcoin or Dogecoin?
Dogecoin and Bitcoin have their advantages and disadvantages, but it all comes down to what you plan to do with your crypto. Bitcoin is an excellent choice for long-term investment, while Dogecoin is a great choice for day-to-day transactions.
Should I invest in DOGE or BTC?
In terms of transaction time and fee, Dogecoin outperforms Bitcoin. Dogecoin has a transaction per second (tps) rate of approximately 33, whereas Bitcoin has a rate of roughly 7 tps. However, Bitcoin has a much larger market cap than Dogecoin.
How high will Bitcoin go?
According to experts, Bitcoin will be traded for at least $374,341.95, with the greatest available price of $442,135.45 in the coming years. As a result, the average BTC price in 2030 will be around $387,029.43.
How high will Dogecoin go?
Dogecoin has excellent potential in the coming years as cryptocurrency acceptance grows. According to various market forecasts, DOGE might hit a new all-time peak of $0.962436 by 2030.
Is Dogecoin faster than Bitcoin?
Dogecoin has the edge over Bitcoin in terms of speed, as the DOGE blockchain technology registers transactions more cheaply and quickly than BTC transactions. Each minute, the DOGE blockchain processes a new block of transactions. On the other hand, the BTC Blockchain processes a block every 10 minutes, which is significantly slower than Dogecoin.
What is the main difference between Dogecoin and Bitcoin?
This distinction is because the DOGE Blockchain technology employs a varying data mining technique than Bitcoin, which helps to explain why DOGE is faster and more efficient to mine. DOGE uses the Scrypt method, whereas Bitcoin uses the SHA-256 algorithm.
DISCLAIMER: None of the authors, contributors, administrators, or editors connected to OWNR Wallet encourage readers to invest in Dogecoin or Bitcoin without proper research. This article is purely for educational purposes only.