- Top 5 differences between Bitcoin and Dogecoin that will help you choose the right the better.
- Although bitcoin is the most popular still dogecoin dominates it in some circumstances.
When Talking about the top two cryptocurrencies one cannot leave Bitcoin and Dogecoin. Bitcoin is the world’s most popular cryptocurrency. While dogecoin is currently budding towards establishing its dominance in the crypto market. Dogecoin has a supportive community. One of the richest people on the earth and a big tech personality, “Elon Musk” is also an ardent supporter of Dogecoin.
There is no one denying the fact that Bitcoin is the biggest cryptocurrency. Therefore, in this article, we will compare it with budding dogecoin on different standards. So that you can get a better understanding of the details as well as the differences between both cryptos.
Factor No. 1 – HISTORY
Bitcoin
This digital currency was first introduced in the year 2008. With a white paper explaining all the details about the crypto. This white paper was released by a pseudonymous person called “Satoshi Nakamoto”. It was introduced with a vision of revolutionizing the way people use money by making it digital as well as Decentralised. This means, no central authority will be controlling it and the control will always be in the hands of the people.
Dogecoin
A formal IBM software engineer “Billy Markus” and an Adobe software engineer “Jackson Palmer”. Together Launched a meme coin called dogecoin on December 6, 2013. This coin witnessed a major boom when in just 24 hours it went up by 800% in January 2021. On May 4 it witnessed an astounding 20,000% increase in a year.
Factor No. 2 – Market Capitalization
Bitcoin
Market Capitalization is important to understand the dominance and popularity of any cryptocurrency. Bitcoin is the biggest and oldest cryptocurrency. It has the biggest market capitalization of $560.25B and a market dominance of 49.3%
Dogecoin
Dogecoin is also ranked as the 7 Biggest cryptocurrency in terms of market cap and holds a market cap of $9.04B.
Factor No. 3 – Transaction Times
Bitcoin
The average confirmation time that a Bitcoin requires is 10 minutes. The reason for so much time is that it is affected by many factors such as network activity, hash rate, and transaction fees. The Bitcoin network is currently able to process only three to Six transactions per second.
Dogecoin
Talking about transaction time, dogecoin outshines Bitcoin. Dogecoin only takes one minute to add a new block of transactions on the Dogecoin blockchain. This makes the Dogecoin network approximately nine times faster than Bitcoin.
Factor No. 4 – Encryption
Bitcoin
Bitcoin uses SHA-256 Algorithm. SHA-256 stands for Secure Hash Algorithm which can generate a 256-bit digest of a message. This hashing algorithm is one of the most popular hashing algorithms.
Dogecoin
Dogecoin uses the Scrypt algorithm which was first introduced in the year 2011 with the launch of Tenebrix. This algorithm enjoys a lot of advantages over others. Such as being less complex as compared to other algorithms, reduced energy consumption, and others. The transaction fee is also low.
Factor no. 5 – The Purpose of the Coin
Bitcoin
Bitcoin was created as an alternative to the traditional centralized finance ecosystem. earlier the power remained in the hands of a central authority but Bitcoin lends the power to the people. It also avoids the problem of a single point of failure.
Dogecoin
Dogecoin was launched in 2014 as a joke currency on the famous meme of Shiba Inu Dog. The main purpose of the developers of dogecoin was to create a peer-to-peer digital currency that has the potential to reach a broader demography than Bitcoin.
