Dogecoin vs. Bitcoin: How Do They Compare?
Bitcoin is the biggest cryptocurrency on the market in terms of market capitalization, while Dogecoin is in 10th place. Both of them are decentralized assets based on the same type of consensus. At the same time, Bitcoin is the first cryptocurrency and sets the tone for the whole market. In contrast, Dogecoin started as a joke and was named after a popular “doge” meme. What are the main differences and similarities between the two cryptocurrencies and why DOGE to BTC is a popular exchange? Read below.
Similarities Between Bitcoin and Dogecoin
Bitcoin and Dogecoin share a lot of similarities that allow suggesting that they both are the same type of assets. Here are the most significant of them:
- BTC and DOGE work on a blockchain.
Both cryptocurrencies run on open-source blockchains. Bitcoin’s digital ledgers, as well as Dogecoin’s, are being updated with every subsequent transaction users make. Also, in order to keep the networks and transactions secure, all of them are encrypted.
- Both have a Proof-of-Work (PoW) consensus method involving miners.
The process of adding new coins to the network or mining is almost identical for Bitcoin and Dogecoin. Both cases involve the so-called miners. They solve complex mathematical equations for rewards helping process transactions and record them on the blockchain.
- Bitcoin and Dogecoin have numerous use cases.
Such assets as DOGE and BTC can be used for multiple purposes. First, it is an effective way to store value. Second, thanks to their volatility, you can earn money by trading these coins. Finally, you can use them like regular money: send, receive, or pay for something. More than 15 000 companies already accept payments in crypto.
Both Bitcoin and Dogecoin are becoming more popular and widely used in different spheres and countries. You can also consider investing in some less popular projects, like Siacoin — but make sure you review the Siacoin price prediction before you do.
What Are the Differences Between Dogecoin and Bitcoin?
Although DOGE and BTC have some things in common, many things make each of them unique.
|Inception||January 2009||December 2013|
|Market Capitalization||$570 Billion||$11 Billion|
|Coins in Circulation||Around 19 Billion||Around 132,6 Billion|
|Maximum Coin Supply||21 Billion||Unlimited|
|Average Transaction Time||10 minutes||1 minute|
|Transaction Fee Range||Fluctuates around $2 per transaction||Fluctuates around $0.10 per transaction|
As it can be seen from the table, BTC has a much higher market capitalization compared to Dogecoin. It is important to understand that Bitcoin is the first-ever launched crypto that started the market history. Every next coin is now called an altcoin and has a much lower market capitalization.
The lower market capitalization and the price of DOGE compared to BTC are partly caused by DOGE’s unlimited coin supply. Fewer coins always mean a higher price in the long run.
The last big difference between Dogecoin and Bitcoin is scalability. DOGE is much lighter than BTC, hence 10 times faster. Consequently, BTC is not only more expensive to buy, but also much more expensive to use.
Is Bitcoin or Dogecoin Profitable for You?
Investment in any volatile asset leads to high risk. The whole crypto market as well as any particular cryptocurrency has its ups and downs. Consequently, buying crypto at its high peak will cause value losses when crypto returns to the previous price level. At the same time, such volatility allows earning money if you manage to buy low and sell high.
The trading process is perfectly applicable to both Bitcoin and Dogecoin. Though these two cryptos are quite different, you can easily make DOGE to BTC pair your personal tool for earning money.
According to projections from Coinpriceforecast and Digitalcoinprice, Dogecoin will most likely reach $0.11 per coin by the end of 2022. At the same time, BTC is expected to rise to $42,000 per coin at the end of 2022.
Thus, if you do a proper analysis and select the right crypto exchange and time frame, you will be able to make money on the DOGE to BTC swap.