What Are the Differences Between Bitcoin and Dogecoin

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You may wonder: why does Elon Musk support Dogecoin? In fact, this seems to be one of the most Googled questions, at the moment. Globally speaking. Just when we finally acclimated to the new technologies – decentralized money, blockchain, and especially Bitcoin, hundreds (even thousands) of other cryptocurrencies have appeared on the market. Since BTC promoters, investors, ambassadors, numerous influencers and many others, have taught us how to invest, and in what to invest, we got used to getting Bitcoin tips and tricks, strategies and shortcuts, and finally: to act accordingly. This is why everyone got so surprised and confused when the world’s richest man started to publicly support Dogecoin, not only Bitcoin. One question came to people’s minds at least once: what now?

In order to be able to invest in a smart way, you first need to know a lot about the very topic. The same goes for cryptocurrencies. The main goal that the Bitcoin creator had on his mind when he invented the first type of decentralized money, was to remove third parties and governmental organizations, and to give more freedom to people who own this type of money. There are several types of freedom: the freedom to make transactions, buy and sell coins, as well as earn from investing. The application of cryptocurrencies and the fields where they can be used are constantly getting expanded, which is how modern technologies are being integrated into our everyday lives.

Why is all this important? Dogecoin was invented as a response to the extreme popularity BTC and other coins have gained over time. This meme-like crypto, when first appeared on the market, was more of a joke than it was a serious currency that you could earn money with. However, people liked the idea and they soon started talking about it on social media, which helped this currency to gain popularity and more importantly: investors. Today, the world’s biggest investors and the richest people in the business world are the owners of Dogecoin, considering it to be a currency of the future. The revelry between Bitcoin and Dogecoin doesn’t seem to come to an end, and at the same time, they are the most popular investing choices today. So what are the main differences between the two currencies? Let’s dive into it:

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The value of a coin is different

If you want to buy a Dogecoin, you would have to invest around 0.13 USD. On the other hand, to buy one Bitcoin, you would need 35.832,60 USD. As you can see, the biggest difference between these two currencies are the values or the prices they hold. Still, this doesn’t mean that Dogecoin is less valuable in terms of investing, because its investment potential is high: the chances of getting a return of investment are high, in other words. You might wonder why Bitcoin is so much higher in value. That takes us to the second biggest difference that should be mentioned:

Limited vs unlimited

No matter what team you’re on, you need to be aware of one important fact – that there is a limited supply of Bitcoin. What does this mean in reality? The Bitcoin creators have predicted and predefined the total number of coins that can be mined which is one of the reasons why this crypto is so valuable. The market is already pretty saturated and there are only a few more millions of coins to be mined before we reach the target of 21 million.

What will happen after this? Unlike the current situation where miners have several earning options, they will only be left with one or two types of fees which will be their only source of income. On the other hand, when it comes to Dogecoin, there is no such thing as a fixed amount of coins and the total value of this cryptocurrency that’s already on the market has a value of an estimated 140 billion. Pretty impressive isn’t it?

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Availability vs exclusivity

Considering the fact that Dogecoin is so well distributed on the crypto market it’s more than obvious that it’s more available than Bitcoin. By using trustworthy trading platforms such as the-newsspy.app, anyone can indulge in the world of investing and afford a certain number of coins for themselves.

This doesn’t mean that you cannot buy Bitcoin as well (or in other words – trade it in an online exchange), it simply means that it’s more expensive and there’s a limited cap compared to Doge. Many investors believe that they should purchase huge amounts of Doge, since they expect and predict that these coins will grow tremendously in value, over time. One of them is, as we’ve previously mentioned, Elon Musk.

Fees are different

As you may already know, BTC transaction fees are very high. In comparison to that, Doge has significantly lower fees which is worth mentioning, since it’s a very important factor. When making a transaction with Dogecoin, you can expect to get a fee that’s around $0.70. On the contrary, if you’re making a transaction and you use BTC, this number will be several times higher. You can expect it to be as high as $16. One of the reasons for this is the accessibility to everyone, which makes it logical that fees are lower as well.

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The mining processes differ

And last but not least, when speaking of differences between these two currencies, we have to mention the process of mining. To be able to mine BTC, you need to be well equipped and you need to expect to spend enormous amounts of money and energy. It’s an expensive system that only works for a limited number of people. At the same time, it takes a lot of time and effort to mine bitcoins. On the other hand, Doge is also being mined but it requires 10 times left time to mine a Doge. Not only does this mean more convenience for miners, but it also means less energy waste on a global level, and a higher earning potential.