3 differences between bitcoin and dogecoin, do you know them?

One of the main differences between bitcoin and dogecoin is that the first was born from one project studied and prepared 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. Over time, other digital currencies are having unusual growth that has caught the attention of investors. But not all currencies are the same, as evidenced by the differences between bitcoin and dogecoin.

At CNBC they have spoken to 3 experts about the differential aspects between the main cryptocurrency by market capitalization (Bitcoin, currently above billion dollars) and Dogecoin (the fourth right now, worth more than 66.5 billion).

Bitcoin, according to CoinMarketCap, is at $58,241, after a season of continuous swings. Dogecoin, the cryptocurrency that was born from a meme (and with the invaluable support of Elon Musk), is at $0.5152, hovering around 12,000% 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 faucet close? You don't know, though never before 2032. Experts talk about a very large fork that runs from the previous year to 2140. This finite feature of bitcoin is critical for James Ledbetter, editor of the fintech FIN newsletter. It asserts that those who decide to invest in bitcoin are usually taken as a long-term transaction, since, being the limited supply, they estimate that the price will rise as demand increases.

Antagonistically, as Meltem Demirors, Director of Strategy at CoinShares points out, dogecoin is inflationary, that is, it is continuously released. Specifically, "10,000 more dogs are issued per minute." With these features, says Demirors, those who want to make a quick profit with a short-term investment opt for dogecoin, while those who are willing to wait to prefer bitcoin.

Dogecoin was "created for fools"

Inspired by a dog of the breed Shiba Inu, the dogecoin was created as a joke in 2013by two software engineers: Billy Markus and Jackson Palmer.

The first of them recently wrote in Reddit that he had "created it for fools." Its founders are extremely surprised by the tremendous growth of this cryptocurrency, which already has a value, much larger than most ibex 35 companies. For many investors, says Demirors, "investing in Dogecoin is a form of entertainment."

Quite the opposite happened with bitcoin, whose unknown ideology launched it into digital reality accompanied by a detailed technical document. More importantly, the staunch defenders of bitcoin see in it an alternative to gold as an active refuge and an active protector against inflation.

Bitcoin has a well-funded ecosystem

Although the above may be the most visible of the differences between bitcoin and dogecoin, another very important invoicing is who, or what is behind it. Although for years, as they recall in CNBC, Dogecoin was developed by engineers who copied the exact Bitcoin code, it has an extensive and well-funded ecosystem that Dogecoin does not have.

Mike Novogratz, CEO of Galaxy Digital, stresses that "Bitcoin is a well-thought-out and distributed value reserve that has already lasted 12 years, while only 2 people own 30% of the entire dogecoin supply."

Novogratz has doubts about what will happen to dogecoin once, put vulgarly, fashion goes out: "When enthusiasm drops, there will be no developers or institutions supporting it."

This article was published in Business Insider España by Oscar F. Civita.

Lineesh Kumar

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