Dogecoin (DOGE) vs. Bitcoin (BTC)

The world of cryptocurrencies has been dominated by bitcoin in terms of market cap, price, and adoption. But aside from bitcoin, there are many other assets known as altcoins. As a crypto enthusiast, you must have come across one of the altcoins that gained a massive following and is often hailed as a joke—Dogecoin (DOGE). This cryptocurrency took the internet and the market in 2019 by storm, with social media platforms and meme communities all around the world discussing, analyzing, and trading it.
But what exactly is Dogecoin, and how did it become an Internet sensation? In this article, we will delve into what DOGE is, its history, and how it differs from bitcoin.

Key Takeaways

1. Bitcoin was created in 2009 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto, while Dogecoin was created in 2013 by Billy Markus and Jackson Palmer as a joke based on the popular meme of a Shiba Inu dog.
2. Despite their different origins, both bitcoin and Dogecoin have gained a significant following and have been used for both investment and transaction purposes.
3. Bitcoin is considered to be more stable and widely accepted compared to Dogecoin, which is often seen as a more speculative investment and a “fun” alternative to other cryptocurrencies.
4. In terms of market capitalization, bitcoin is currently valued at over $550 billion, while Dogecoin is valued at around $11 billion.
5. Dogecoin has gained traction through the years over other meme coins thanks to celebrity endorsements and social media hype, leading to a surge in its value

The table below shows the comparison of Dogecoin and bitcoin.
When comparing Dogecoin and Bitcoin, it's important to note several key differences that set these two cryptocurrencies apart:

• Launch Year: Dogecoin was introduced in 2013, while Bitcoin has been around since 2009.
• Creators: Dogecoin was created by software engineers Billy Markus and Jackson Palmer. Bitcoin's creator, known as Satoshi Nakamoto, remains anonymous.
• Market Capitalization: As of April 2023, Dogecoin's market cap is around $11 billion, whereas Bitcoin's market cap was significantly higher at $560 billion as of August 2021.
• Circulating Supply: There are approximately 139 billion DOGE in circulation, compared to 19.3 million BTC.
• Block Time: Dogecoin transactions are generally confirmed in about 1 minute, while Bitcoin transactions take about 10 minutes.
• Algorithm: Dogecoin uses the Scrypt algorithm for its proof-of-work consensus, making it different from Bitcoin, which uses the SHA-256 algorithm.
• Transaction Fees: Dogecoin's transaction fees are nearly zero, making it very efficient for small transactions. In contrast, Bitcoin's transaction fees can be high and vary depending on the network traffic.
• Use Cases: Dogecoin is popular for tipping, microtransactions, and online purchases due to its low transaction fees. Bitcoin is widely used as an investment, a store of value, and for payments and international transfers, reflecting its broader acceptance and stability

What Is Dogecoin (DOGE)?

Dogecoin was founded in 2013 by software programmers Billy Markus and Jackson Palmer and is represented by the ticker symbol DOGE. Initially intended as a parody of the cryptocurrency craze, Dogecoin quickly gained a loyal following due to its fun, meme-based branding featuring the popular Japanese dog breed—Shiba Inu. Despite its origins as a joke, Dogecoin has gained a significant following and has become a popular cryptocurrency among investors and enthusiasts.

Where Did Dogecoin Come From?

The idea for Dogecoin originated from the popular “Doge” internet meme featuring a Shiba Inu dog. Markus initially created Dogecoin as a fun and light-hearted project, while Palmer helped to popularize it on social media platforms. The initial release of Dogecoin saw a high level of interest from the community, with the cryptocurrency gaining momentum quickly. This led to the creation of the Dogecoin Foundation, which was established to promote the use of Dogecoin and to support charitable causes.

How Does Dogecoin Work?

Like bitcoin, it uses a decentralized network of nodes to validate transactions and maintain the integrity of the blockchain. Transactions on the Dogecoin network are verified by network nodes through cryptography and are recorded on a public ledger. Unlike bitcoin, which has a limited supply of 21 million coins, Dogecoin has no fixed supply limit and currently has over 130 billion coins in circulation. This means that Dogecoin inflation can continue indefinitely, which has led some critics to label it as an inflationary cryptocurrency.
Dogecoin also uses PoW consensus like bitcoin. However, in Dogecoin’s case, it uses a modified version of the PoW consensus algorithm called Scrypt, which allows for more accessible mining compared to bitcoin.

What Is Bitcoin (BTC)?

Bitcoin (BTC) is a digital currency that was created in 2009 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto. Bitcoin transactions are verified through a decentralized network of computers and recorded on a public ledger called the blockchain. Transactions can be made anonymously without the need for a bank account or personal information. This has made bitcoin popular with individuals who live in countries where traditional financial systems are unreliable, or who wish to keep their financial transactions private.

Bitcoin is widely accepted as a payment method by many businesses and merchants around the world. It has also become a popular investment asset, with many investors buying Bitcoin as a long-term investment to capitalize on its potential for growth in value. However, bitcoin has also faced criticism and controversy over issues such as its association with illegal activities, its extreme volatility, and environmental concerns related to the energy consumption required to mine bitcoin

Where to Store Dogecoin and Bitcoin Securely?

To start your crypto journey, you must find a suitable place to store your Dogecoin and bitcoin securely. Guarda Wallet offers a safe and reliable way to store your digital assets without compromising their security. But what is Guarda Wallet? It is a multi-currency digital wallet that offers a variety of features to keep your DOGE and BTC safe.

Guarda Wallet is available on both mobile, desktop, and web platforms, allowing you to access your digital assets from anywhere at any time. With its advanced security feature, Guarda Wallet ensures your digital assets are kept safe from unauthorized access, theft, or loss through encryption, backup, multi-sig, biometric login, and others.
One of the most significant advantages of Guarda Wallet is that it offers a non-custodial solution. This means that you are in complete control of your digital assets, and you do not have to rely on third-party risks to manage your keys, which are crucial to access your digital assets. Guarda Wallet’s user-friendly interface makes it easy to navigate and manage your digital assets. You can easily send or receive Dogecoin and bitcoin.

Differences Between Dogecoin and Bitcoin

While both bitcoin and Dogecoin are decentralized cryptocurrencies, they differ significantly in terms of their supply and other features, which may have an impact on their adoption and popularity among users

Supply

Bitcoin has a limited supply, with a maximum of 21 million coins that can ever exist. This limit was built into the bitcoin protocol to prevent inflation and maintain the value of the currency over time.
On the other hand, Dogecoin has an unlimited supply of coins that can be produced. Each year, a fixed amount of new Dogecoins are created through mining, which is currently set at around 5 billion coins per year. This means that the supply of Dogecoin will continue to increase over time, unlike bitcoin, which has a finite supply.

Transaction Speed

While they share the fundamental principles of blockchain technology, they differ in terms of block time (transaction confirmation speed). Dogecoin has a block time of 1 minute, whereas bitcoin’s block time is 10 minutes, making Dogecoin’s network faster in processing transactions.

Smart Contracts

Smart contracts are self-executing contracts with the terms of the agreement directly written into code. Currently, Bitcoin does not natively support smart contracts, while Dogecoin has limited support for smart contracts due to its simpler scripting language.

oken Addresses

Dogecoin and Bitcoin use different address formats to represent wallet addresses. A Dogecoin address starts with the letter “D,” while a bitcoin address may start with a “1,” “3,” or “bc1” (for SegWit addresses).

Mining Algorithm

Dogecoin uses the Scrypt algorithm, a PoW consensus mechanism that is more energy-efficient and allows for easier mining than bitcoin’s SHA-256 algorithm. This difference results in a more accessible mining experience for Dogecoin users compared to bitcoin miners.

Transaction Fees

Transaction fees are a crucial aspect of any cryptocurrency. Dogecoin’s average transaction fee is significantly lower than bitcoin’s due to its faster block time and lower network congestion. This makes Dogecoin more suitable for small transactions and everyday use.

Scalability

Bitcoin has faced challenges in terms of scalability, resulting in slower transaction times and higher fees during peak usage. On the other hand, Dogecoin’s faster block time and lower transaction fees provide better scalability. However, it’s essential to note that neither Dogecoin nor bitcoin can currently compete with traditional payment systems like Visa or Mastercard and cryptocurrencies like XRP, SOL, and ADA in terms of transaction throughput.