Dogecoin vs. Bitcoin: What’s the Difference?
It’s hard to fathom that we’d be comparing Bitcoin to Dogecoin since they are on opposite ends of the spectrum in the crypto community.
But on closer inspection, we can actually learn some valuable insights by examining these two digital assets side by side - especially as the crypto industry branches off into new directions and evolves as a whole.
While it’s not likely that Dogecoin will ever compete with Bitcoin in terms of value or popularity, there are several takeaways worth noting from the Doge saga in these past several years, so stay tuned!
Let’s compare Dogecoin and Bitcoin and see how they differ in terms of technical specifications, philosophy, marketing, and what it all means for the future of crypto.
A Quick Look at Dogecoin
Since Bitcoin is the king of crypto (and has been for more than a decade), it makes more sense to start by looking at Dogecoin – a newer and more speculative crypto asset.
The Origins of Dogecoin
Dogecoin has been around longer than you may think, and it has a rich history to go along with its humorous image and popular appeal.
An Adobe product manager named Jackson Palmer created the cryptocurrency in Sydney, Australia. The initial idea resulted from a mix of skepticism and sarcasm – made clear with the image of the Shiba Inu dog from the popular internet meme.
Palmer’s concept for his fun Doge-themed crypto was flimsy, but interest in his idea quickly grew across the internet in a matter of months. We can even track threads on Twitter and Reddit from early 2014 to see how support for Dogecoin grew fast and organically at the time.
Before long, an Oregon-based developer named Billy Markus asked for permission to build a legitimate blockchain for Dogecoin, bringing it to life and setting the stage for a wild ride ahead.
Mining Doge Coin
The code of Dogecoin is based on a Litecoin derivative known as Luckycoin, which originally used a randomized block mining reward system.
Similar to Bitcoin’s famous proof-of-work blockchain protocol, Dogecoin can be mined by using dedicated computing resources like CPUs and graphics cards.
In this sense, Dogecoin and Bitcoin have a few key similarities. Those familiar with the concept of crypto mining understand that it’s a labor-intensive process, demanding focused resources and attention on a specific goal.
HBitcoin has a limited supply of coins that will eventually be mined, but the supply of Dogecoin is virtually infinite, meaning it’s an inflationary coin rather than deflationary.
This is a big split in how Bitcoin and Dogecoin work on a technical level and leads many to believe that Bitcoin is far more secure and immutable as a result.
The Rise of Dogecoin
While the price of Dogecoin was only a fraction of a cent for many years, the crypto saw a brief burst of popularity in the 2017 crypto bull market.
However, it wasn’t until January of 2021 that social media buzz and influencer statements started to rev the engines of the Dogecoin hype train.
From TikTok challenges to tweets from Elon Musk and a general euphoria in the crypto market at large, Dogecoin had risen to $0.07 in February of 2021, just before an astronomical climb over the next few months.
The price of Dogecoin peaked at just over $0.68 in early May of 2021, but that price has since leveled off between $0.20 and $0.30 as 2021 comes to a close.
Bitcoin vs. Dogecoin – Head to Head
We can see the appeal of Dogecoin as it went from a silly meme coin to a legitimate contender in the altcoin marketplace, but how does this coin stack up to Bitcoin in the long run?
Market Cap and Value
While Dogecoin is still in the top ten cryptocurrencies by market cap, it doesn’t hold a candle to Bitcoin’s overall value, trading volume, and actual price per coin.
While Bitcoin’s market cap is well over $1 trillion, Dogecoin’s cap is roughly a third of that – still an impressive number considering its origins.
Even more astounding was Dogecoin’s ability to “flip” famous altcoins like Litecoin, Bitcoin Cash, and Ethereum Classic during its epic rise to the top of the charts in 2021.
Nevertheless, Bitcoin remains at the head of the pack across all the metrics that matter most, and it’s unlikely that Dogecoin will ever catch up to the original “digital gold” of the crypto industry.
Support and Adoption of Dogecoin
On a practical level, Bitcoin and Dogecoin can be accessed and acquired on nearly every functional exchange or trading platform, whether on a desktop or mobile interface.
While Bitcoin is quite wide-ranging in terms of adoption, Dogecoin is not as far behind as you might think. Many travel agencies and service providers allow customers to pay in Bitcoin and altcoins like Ethereum, Litecoin, and Dogecoin.
The adoption rate has cooled off for Dogecoin in recent months as prices dropped and stabilized, but the precedent for popularity has been set.
Remember – Dogecoin is still among the top altcoins on the planet, and with more than $30 billion worth in circulation right now, it’s not going anywhere, any time soon.
3 Key Lessons from Dogecoin
Dogecoin may not hold a candle to Bitcoin when it comes to tech fundamentals or practical use, but there are several things we can learn from the Dogecoin craze of the past year.
1. Limitless Possibilities
If a meme coin based on a silly Shiba Inu can turn into one of the most popular cryptos in the world, what does this mean for the industry in general? There are so many possibilities, and we’re only just beginning to see the future more clearly.
Whether it’s renewable energy Bitcoin mining, decentralized finance apps, or a total reimagining of the monetary system from the ground up, Dogecoin inspires us to think bigger and see what’s possible on the horizon.
2. Community Matters
It wasn’t the technical backbone of Dogecoin that caused its price to rise so fast, nor the fact that it’s a very useful coin in the first place.
In other words, it was the community aspect of Dogecoin that fueled its rapid rise, and we can all learn something valuable from that. Community matters a lot, as does marketing and support across all social media platforms.
This isn’t just a lesson for crypto, but for business in general and the all-aboard nature of human psychology. The hype around a product is sometimes more significant than the product itself, and that’s worth remembering.
3. Crypto Never Sleeps
Dogecoin was the entry point for many crypto newcomers, and that’s definitely a good thing. Young people discovered crypto for the first time through Doge, and this has led them closer to financial freedom – or at least better money habits.
Yes, there is an element of speculation and volatility with Dogecoin, but if it got young folks tuned into the industry, it’s a win-win across the board.
Bitcoin Is Still the Best Bet
Dogecoin taught us so much and made us reconsider what defines a cryptocurrency.
Still, Bitcoin reigns supreme in this burgeoning industry, and that’s where the vast majority of the interest, investment, and innovation is taking place.
Sources:
Dogecoin Vs Bitcoin | Byte Federal