Dogecoin and Bitcoin are the two crypto-stars of the crypto-world. Almost every site always follows the performance of these two cryptocurrencies.
Dogecoin has a vast family of dedicated followers, including Elon Musk, the CEO of Tesla, who misses no chance of hyping the popularity of Dogecoin. On the other hand, Bitcoin is the oldest cryptocurrency, which led to the 1st revolution of cryptocurrency. It holds the 1st position among all cryptocurrencies.
But what other differences Dogecoin and Bitcoin have other than this popularity?
In this Dogecoin vs. Bitcoin tutorial, you will look into the various concepts and components around Dogecoin and Bitcoin that make them different from each other.
What are Dogecoin and Bitcoin?
Dogecoin
- Dogecoin was intended to be an altcoin and a meme coin inspired by Shiba Inu's popular meme, aka "DOGE."
- Dogecoin is a peer-to-peer, open-source cryptocurrency that provides its users with a completely unknown, decentralized, and secure environment to make their transactions.
Bitcoin
- Bitcoin is designed to be an alternative to national currencies, and it enables transparent and decentralized peer-to-peer transactions.
- It intends only to be a medium of exchange and value storage comprising features like a public ledger, immutability, and high transparency. Thus making it a great platform.
Origin of Dogecoin and Bitcoin
Dogecoin |
Bitcoin |
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Dogecoin originated as a joke in 2013 by two software engineers Jackson Palmer and Billy Marcus. |
Bitcoin was the first cryptocurrency originated in 2009 by Satoshi Nakamoto to build a new financial system. |
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At the time, Dogecoin had little popularity and was intended to be taken as a ridiculous joke. |
It was intended to reduce transaction costs by eliminating the need for 3rd parties like banks and central authorities. |
Rise and Fall of Dogecoin and Bitcoin
Rise
According to crypto-market reports, Bitcoin and Dogecoin have both been hot investments over the past few months surging 650% and 18,000%, respectively, at current prices.
Fall
Dogecoin, the digital currency, recently crashed, declining by over 30% in value. The decline started a day after Dogecoin fans celebrated 20th April as Doge Day, using hashtags and posts on social media platforms to fuel the price of this cryptocurrency.
A few days back, Bitcoin and other digital currencies faced a huge downfall in their price because of the decision taken by Chinese authorities to ban all cryptocurrency transactions performed by any financial institutions and or online platforms.
Dogecoin vs Bitcoin: Key Differences
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Algorithm
Dogecoin |
Bitcoin |
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Dogecoin uses Scrypt cryptography for mining the blocks of the Dogecoin Network. |
Bitcoin uses the SHA256 hashing algorithm for mining its block in the blockchain network. |
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Scrypt Language is a password-based key derivation function used primarily to avoid customized hardware attacks by raising the resource demands of the algorithm. |
This algorithm helps Bitcoin users protect all their sensitive data like private keys or transaction details and helps maintain the user’s anonymity for secure transactions. |
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Programming Language
Dogecoin is considered to be an altcoin for Bitcoin. Both Dogecoin and Bitcoin use the same programming language. It is a stack-based programming language used to give Bitcoin software instructions on how to make transactions.
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Mining Process
Mining cryptocurrency is a process in which it validates and adds transactions to the blockchain public ledger in Blocks. And the people mining these blocks are called miners.
In terms of the mining process, Dogecoin and Bitcoin use the same method to verify and validate the pending transactions in their networks, Proof-of-Work.
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Monetary Policy
Monetary policy is known as the process of drafting, announcing, and implementing the plan of actions taken by the competent monetary authority to control the money supply and achieve goals that promote sustainable economic growth.
Dogecoin |
Bitcoin |
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Its block reward defines Dogecoin's policy paid to its miners. |
Bitcoin's policy is defined by two processes - halving and block reward.
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Dogecoin's block reward is 10,000 for mining one block, and it takes 1 minute to generate one block. |
Bitcoin's block reward is 12.5 for mining per block and it will be reduced to 6.25 by 2024, and it takes 10 mins to generate one block. |
Monetary policies are considered to be fixed and non-inflationary. Because of this, over time, mining blocks will become more complex.
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Transactions
Dogecoin |
Bitcoin |
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Dogecoin can complete 70 transactions in one second and takes just 2 to 3 minutes to confirm a transaction. |
Bitcoin can complete up to 5 transactions in one second and takes 10 minutes or more than that to confirm one transaction. |
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Dogecoin is majorly used for tipping content creators on social platforms like Reddit and Twitter. |
Bitcoin is only used as a superior alternative for fiat money and is mainly used for real-world transactions. |
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Availability and Current Value
Dogecoin |
Bitcoin |
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The circulating supply of Dogecoin is 127 billion, and till today, 113 billion Dogecoin has already been mined. |
Bitcoin is only 21 Million in circulation, and till today, 18 Million bitcoins are already mined. |
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The value of Dogecoin on today's date is $0.2992. |
Bitcoin being the highest is $34,857.58. |
Dogecoin vs. Bitcoin: Which One Should You Invest In?
Investors should remember that both Bitcoin and Dogecoin have been highly volatile investments and if you decide to invest, you should know the fluctuation in the prices of these cryptos will always be there.
So, the question is which one is the better buy. And from that perspective, Bitcoin has several advantages over Dogecoin:
- It is more scarce
- It is more popular
- It is more valuable.
And that is why Bitcoin will be a better choice.
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Conclusion
In this tutorial, you saw everything about the comparison of Dogecoin and Bitcoin on various parameters like algorithm, programming language, mining process, monetary policies, value, and availability.
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Do you have any questions for us? Please feel free to drop them in the comments section of this Dogecoin vs Bitcoin article; our experts will get back to you as soon as possible.
