One is the best-known cryptocurrency while the other started as a joke – they are Bitcoin and Dogecoin respectively. They are among two of the best-known cryptocurrencies that are doing the rounds in the crypto market. They are two almost similar digital currencies that also have some noteworthy distinctions between them. If you are interested in Bitcoin trading, you might be interested to use a reputable platform like the Bitcoin Prime platform.
What Is Dogecoin? An Overview
Dogecoin was created by Jackson Palmer and Billy Markus as a joke against all the numerous altcoins that flooded the market soon after Bitcoin in 2013. The creation of Dogecoin was to poke fun at the numerous coins that came into being after Bitcoin appeared on the crypto horizon. A special feature that marks the coin out from others is the appearance of a Japanese breed of dog called Shiba Inu. And one fine Christmas Day, when millions of Dogecoin were hacked it came into the limelight permanently.
Again when it appeared on Tik Tok, it gained its second round of importance. Its prices rose by 600% since its Tik Tok appearance. Finally, it gained another round of importance when Tesla founder, Elon Musk started investing in it. It then rose by about 70% with each coin.
What Is Bitcoin? An Overview
Every financial investor is aware of the fact of investing in Bitcoins. Bitcoin is now becoming a popular transaction mode in many countries. Some countries have made it legal while some have banned it totally. With so many ups, Bitcoin reached a new record when it finished with its value capped at $65,000.
Of the many thousands of cryptocurrencies in circulation in the market, Bitcoin is the most reliable and has the reputation of being dependable and acceptable. It is now being considered to be a barrier against failure in the fiat currency world.
Key Differences Between Bitcoin and Dogecoin
There are some key distinctive factors that separate the two coins. They are in their:
- Inaugural year
- Market capitalization
- Number of coins that are being circulated
- The ultimate supply of coins
- Time taken for the transaction
- The fees charged for the transaction
There is some more dissimilarity between the two coins. Their encryption is different. One of them has an unending supply of coins while the other is capped. The number of transactions that take place for both every second is different. Each block in each of the two coins has different block confirmation times. One is more, the other is less as in 10 minutes for Dogecoin and 1 minute for Bitcoin. The rewards that miners in both communities get are also different.
Key Similarities Between Bitcoin and Dogecoin
You have seen the key distinctive factors that rule over both coins. Now let us delve deep into the similarities between the two coins. Both the coins work with the proof-of-work consensus method. Both have their transactions stored in a blockchain. As soon as the block becomes saturated, the miners authenticate the block. For this, they need a 64-digit code. With the discovery of this unique code, the block becomes a valid block and is dedicated to the blockchain. In both the blockchains the miners either work in unison or work singly. But both the system rewards their miners with coins that are in circulation in the blockchain.
Both the coins are used for transactions and have a store value which makes them even more valuable. Both the coins are now being used as a means of payment given in return for some goods or services being taken.
Specialties of Bitcoin and Dogecoin
Both coins are considered to be special. Bitcoin is the first known cryptocurrency ever. Though Dogecoin is one of the numerous cryptocurrencies found in the market, it has one special feature about it. It has Shiba Inu, a Japanese dog breed on its coin. It basically made its appearance as a joke to mock the many coins that showed up its head in the market after Bitcoin.
Conclusion
Whatever you want to invest in is totally your call. You can even choose not to invest in any of them. But one thing that remains constant for both the coins is that both are very volatile and risky assets. So you have to make careful decisions while investing.
