One thing we can surely say by looking at the Google trends is that Dogecoin is the hot topic in the crypto industry these days. Often called a joke-inspired cryptocurrency, Dogecoin is now suspected of beating bitcoin with its high-soaring values. Recently, Dogecoin’s market capitalization peaked at $8 billion, with the individual coin price reaching up to $60,000.
We know these numbers are nothing as compared to bitcoin, but anything can happen in this volatile crypto market. Despite being a pretty low valued crypto, Dogecoin has still made up to the recent tweets by Elon Musk and other influential crypto leaders, which shows that there’s something unique about it. With that said, let’s find out if all the hype and predictions about Dogecoin beating Bitcoin is true or they’re just beating around the bush.
Firstly, Dogecoin is inflationary, as you can see its unexpected spike in price just by a regular Elon Musk’s tweet. That is how volatile Dogecoin is, but we’ll find some major differences between Dogecoin and Bitcoin.
From having a 1-minutes block time to working on a scrypt based hash function, Dogecoin is not even steps closer to Bitcoin with a 10-minute block time and a whopping market supply of 21 million.
- Coin Supply:
As earlier mentioned, Bitcoin currently holds a market supply of 21 million up till now. At the same time, there have been around 130 billion Dogecoin in circulation at the time of writing. On applying the supply to demand formula, we can clearly see the scarcity of Bitcoin and why it is considered a highly demanding cryptocurrency than any other coin.
However, it’s not the coin supply that can tell if Dogecoin is to beat bitcoin but the price value. The price difference between Dogecoin and Bitcoin is extremely high, and it might take Dogecoin decades to compare with Bitcoin’s value.
Nevertheless, some crypto experts from Bitcoin Rush App also say that there’s nearly no possibility for Dogecoin price to rise higher than $10 per coin.
The reason why Bitcoin has a limited coin supply is that every year miners add only approximately 5 billion coins to the existing supply. Not only does this help in controlling inflation, but it also serves as an excellent store of value for institutional investors. Who would trust a cryptocurrency that can increase or decrease in value in a matter of a few minutes? Whichever currency you use to buy Dogecoin, there’s a high chance of loss as the value devalues every minute. This threat of inflation accompanied by Dogecoin often leads investors to consider it as an unstable crypto investment.
- Blockchain platform:
Almost everyone today on Earth knows how Bitcoin was created. Besides his anonymous creator- Satoshi Nakomoto, everything is pretty transparent about the creation of this trillion-dollar cryptocurrency. Launched in 2009, Bitcoin works on a peer-peer decentralized blockchain network that’s entirely secure and encrypted. In contrast, Dogecoin came as a result of a Joke shared in the tweet of Billy Markus and Palmer.
Both these software engineers shared a Doge meme as a tweet in 2013. The meme was intended to create hype for something that had not even existed yet. The meme also had a picture of a Shiba Inu dog that people not only liked but also shared with others in a fun sense. Later that event, Markus cleared the confusion by saying that Dogecoin was simply created for sillies. He added, I threw it together, without any expectation or plan. It took about 3 hours to make.”
Bitcoin VS Dogecoin
In short, Bitcoin is better than Dogecoin in every way. Not only is it highly technical and secure, but it also grows exponentially more than any other coin in the market. In contrast, Dogecoin received much love and popularity for its creativity and relationship with the Shiba Inu dog. Soon after the tweet was released, Dogecoin took over the social media by storm, including comments from Elon Musk and Mark Cuban.
A lot of people still say that Dogecoin has been an inside joke and will always be. It can be a form of investment for those trying to ground their feet in the crypto world, but it’s definitely not anything comparable to beat Bitcoin in the next five, ten, or even decade.
However, experts recommend giving special attention and taking necessary precautions before investing in this risky investment. As social media grows speaking of Dogecoin, it’s hard to believe that the hype will end anytime soon.
(Syndicated press content is neither written, edited or endorsed by ED Times)