Produced as a joke cryptocurrency in 2013, Dogecoin recently hit a record $ 0.69, and the price of Dogecoin has increased by over 12,000% this year. Famous names such as Tesla CEO Elon Musk have been the main factor behind the rise of DOGE. Dogecoin has become one of the most popular cryptocurrencies, with Bitcoin reaching a record $ 63,000 last month.
But that's not exactly the case. There are very important differences between the two cryptocurrencies. The three most important differences between Dogecoin and Bitcoin that I have observed are as follows;
Bitcoin Has A Limited Supply
More DOGE is printed every minute and this provides Dogecoin with an endless supply, which analysts say is causing inflation for DOGE.
“For example, every minute of the day, 10,000 extra Dogecoins are produced. That equates to about $ 15 million a day, or over $ 5 billion a year. " Analysts underline that the unlimited supply can negatively affect the value of the cryptocurrency over time.
Bitcoin, on the other hand, has a fixed and limited supply of 21 million; This creates an established scarcity for BTC, just as gold or diamonds are valuable because they are scarce.
This scarcity is cited as the mainstay of cryptocurrency experts who argue that Bitcoin should be retained in the long term. Because as the demand continues to increase, the price will increase within the limited Bitcoin supply.
Bitcoin's Technical Fundamentals Are Much Stronger Than Dogecoin
Another important difference between Dogecoin and Bitcoin; are the plans and aims of each one of them.
Bitcoin was launched in 2009 with an extremely detailed whitepaper by a person using the pseudonym Satoshi Nakamoto. Nakamoto's goal was for Bitcoin to become the leading decentralized digital currency. Bitcoin supporters view crypto as a safeguard against digital gold and inflation.
Trust in Bitcoin has grown tremendously, with institutional and retail investors going on for 12 years; this has enabled the cryptocurrency to hit record prices this year.
By contrast, Dogecoin was created as a joke coin in 2013 by software engineers Billy Markus and Jackson Palmer. Markus and Palmer did not even think that DOGE representing a Shiba Inu dog would be taken seriously.
In fact, Markus said in a Reddit post he recently posted, “I put DOGE together without any expectations or plans. It took about 3 hours to do. " he wrote.
As a result, Dogecoin lacks technical development and I think it is not as secure as Bitcoin as a project.
Bitcoin Has A Well-Funded Ecosystem
Although Dogecoin has been developed for many years by engineers copying code from Bitcoin software; Bitcoin has an extensive and well-funded ecosystem not found in Dogecoin.
Galaxy Digital CEO Mike Novogratz told CNBC's "Squawk Box" on April 20 that Bitcoin is a well-thought-out and well-distributed store of value that has lasted for 12 years and is increasingly adopted. In Dogecoin, there are two users who own 30% of the entire circulating supply.
Novogratz also said, “This was seen somewhat as a stance against the system and as public money. I think this is dangerous. Because if this enthusiasm ends one day, it could have bad consequences for its investors. But I still do not want to discredit DOGE. " he added.
As a result, I think that Bitcoin is more valuable than Dogecoin, and I advise investors not to be fooled by instant increases and to make good analysts for the coin they will invest in.
