Bitcoin and Dogecoin are two of the most popular cryptocurrencies out there today.
Both have a huge market cap and trading volume, but how exactly do they differ?
What separates these two cryptocurrencies from one another, and which comes out on top?
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What Is Bitcoin (BTC)?
Though Bitcoin was once almost worthless, it has risen through the ranks to become a highly valuable asset.
Its price fluctuates constantly and once stood at almost $70,000.
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Nakamoto still has a huge holding of Bitcoin, worth billions of dollars.
What we do know is that Nakamoto is responsible for creating the world’s most popular cryptocurrency to date.
How Does Bitcoin Work?
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Bitcoin exists on a blockchain, which is essentially a chain of encrypted data.
Each Bitcoin transaction is recorded chronologically and permanently on the Bitcoin blockchain using theproof of work mechanism.
Proof of work involves individuals known as miners solving complex computational problems to confirm transactions and secure the blockchain.
However, miners often work in groups known as pools and share the rewards.
Bitcoin is known to have frustratingly long transaction times, sometimes exceeding hours.
Unfortunately, Bitcoin’s data pipe is incredibly popular but not scalable.
In crypto, scalability refers to the ability of a platform to expand with and support increasing demand.
For example, the Bitcoin web link was once pretty quiet, but a lot has changed.
Currently, over 250,000 Bitcoin transactions are processed daily, which is no small feat.
But as the popularity of Bitcoin grows, it becomes harder for the online grid to keep up.
This is what gives way to long transaction times and high fees.
But this doesn’t address Bitcoin’s problem with scaling.
Bitcoin has a finite supplyof 21 million BTC.
Once this limit is reached, no more coins can be put into supply.
This was an intentional move by Nakamoto and is supposed to help Bitcoin maintain value and hedge against inflation.
What Is Dogecoin (DOGE)?
The coin’s logo is the infamous doge image itself.
A funny crypto based on a funny meme.
Makes sense, right?
Well, Dogecoin’s future was set to be very different from what its creators envisioned.
This is an energy-intensive process but is still profitable for miners.
This is still a decent amount but doesn’t come close to the current Bitcoin mining reward.
Dogecoin is also based on a proof-of-work blockchain and cannot scale very well.
Unlike Bitcoin, Dogecoin has an infinite supply.
This means there is no cap on how many Dogecoins can be in circulation at once.
There are currently over 130 billion Dogecoin in circulation, which is constantly increasing.
After all, Dogecoin was launched as a joke, while Bitcoin had serious intentions behind it.
This isn’t to say that Dogecoin isn’t secure.
Cryptocurrencies are based on blockchain technology designed to store data safely.
Bitcoin vs. Dogecoin
So, between Bitcoin and Dogecoin, which is better?
The answer to this depends on what you plan to do with either crypto.
Both use the same consensus mechanisms, too, so there’s not much difference.
However, Bitcoin has a finite supply, which can help tackle the effect of inflation.
Many investors choose both cryptocurrencies as investment options, while others choose neither.
It’s important to take note of these things before investing.
Bitcoin vs. Dogecoin: Can You Really Call a Winner?
It’s difficult to crown a winner between Bitcoin and Dogecoin.
