One of the main differences between bitcoin and dogecoin is that the first was born from a studied and prepared project and the other is the result of a meme: “Dogecoin was created for fools,” one of its founders recently wrote.
Until not too long ago, unless you were an expert on the subject, people associated cryptocurrency with bitcoin. There was nothing else. As time goes by, other digital currencies are having unusual growths that have caught the attention of investors. But not all currencies are the same, as shown by the differences between bitcoin and dogecoin.
On CNBC have spoken with 3 experts about the differential aspects between the top cryptocurrency by market capitalization (Bitcoin, currently, over a trillion dollars) and Dogecoin (the fourth at the moment, with a value of more than 66.5 billion).
Bitcoin, according to CoinMarketCap, is at $ 58,241, after a season of continuous ups and downs. Dogecoin, the cryptocurrency that was born from a meme (and which has the invaluable support of Elon musk), is at $ 0.5152, hovering around 12,000% growth so far this year.
Bitcoin has already marked its end
There will only be 21 million bitcoins. This was established by its creator, Satoshi Nakamoto. When will the tap be turned off? It is not known, although never before 2032. In fact, experts speak of a very wide range that goes from the previous year to 2140. This finite characteristic of bitcoin is fundamental for James Ledbetter, editor of the Fintech newsletter. END. Affirms that those who decide invest in bitcoin, are usually taken as a long-term operation, since, since the supply is limited, they estimate that the price will rise as demand increases.
Antagonically, as Meltem Demirors, Director of Strategy at CoinShares points out, dogecoin is inflationary, that is, it comes out on the market continuously. In fact, concrete, “10,000 more doges are issued per minute“. With these characteristics, Demirors points out, those who want to make a quick profit with a short term investment They opt for dogecoin, while those who are willing to wait prefer bitcoin.
Dogecoin was “created for dummies”
Inspired by a dog of the Shiba Inu breed, dogecoin was created as a joke in 2013 by two software engineers: Billy Markus and Jackson Palmer.
In fact, the first of them recently wrote on Reddit that they had “created it for dummies.” Its own founders are extremely surprised by the tremendous growth of this cryptocurrency, what it already has a value, much larger than most Ibex 35 companies. For many investors, Demirors believes, “investing in dogecoin is a form of entertainment“.
Quite the opposite happened with bitcoin, whose unknown ideologue launched it into digital reality accompanied by a detailed whitepaper. What’s more, staunch advocates of bitcoin see in it a alternative to gold as a safe haven asset and a protective asset against inflation.
Bitcoin has a well-funded ecosystem
Although the former may be the most visible of the differences between bitcoin and dogecoinAnother major dissimilarity is who, or what, is behind. Although for years, as they remember in CNBC, Dogecoin was developed by engineers who copied the exact code of Bitcoin, it has an extensive and well-funded ecosystem that Dogecoin does not have.
Mike Novogratz, CEO of Galaxy Digital, highlights that “Bitcoin is a well thought out and distributed store of value that has already lasted 12 years, while only 2 people own 30% of the entire supply of dogecoin”.
Novogratz has doubts about what will happen to dogecoin once, vulgarly said, it goes out of style: “When enthusiasm wanes, there will be no developers or institutions supporting”.
This article was published in Business Insider Spain by Óscar F. Civieta.