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.
- 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.
- Despite their different origins, both bitcoin and Dogecoin have gained a significant following and have been used for both investment and transaction purposes.
- 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.
- In terms of market capitalization, bitcoin is currently valued at over $550 billion, while Dogecoin is valued at around $11 billion.
- 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.
|Creator||Billy Markus and Jackson Palmer (software engineers)||Satoshi Nakamoto (anonymous)|
|Market cap||$11 billion (as of April 2023)||$560 billion (as of August 2021)|
|Circulating supply||139 billion DOGE||19.3 million BTC|
|Block time||1 minute||10 minute|
|Transaction fee||Near zero||High, can vary depending on traffic|
|Use Cases||Tipping, microtransactions, online purchases||Investment, store of value, payments, international transfers|
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.
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.
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 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.
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).
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 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.
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.
How to Buy, Sell, or Exchange DOGE and BTC?
Guarda Wallet allows users to securely store, manage, buy, exchange, and send over 400k+ assets, including DOGE and BTC. Here’s a quick guide on how to buy, sell, or exchange DOGE and BTCV using Guarda Wallet:
- Download and install Guarda Wallet from the Google Play Store or App Store or access it from their website.
- Create an account on Guarda by following the registration process and logging in to your new account.
- In your wallet dashboard, choose the “Buy” or “Exchange” option depending on what you want to do.
- If you want to buy DOGE and BTC, select the cryptocurrency and the payment partner that suits you. The payment partner you choose determines the payment method including Visa/Mastercard card, Apple Pay, or SEPA transfer.
- Enter the amount of DOGE and BTC that you want to buy and complete the payment process as directed.
- If you want to exchange DOGE and BTC for another cryptocurrency or vice versa, select the cryptocurrencies you want to exchange, determine the exchange rate & fees, and enter the recipient address.
- Confirm the transaction and wait for it to be verified. Once complete, the exchanged cryptocurrency will appear in your wallet.
While both Bitcoin and Dogecoin are cryptocurrencies with their respective strengths and weaknesses, there are significant differences between the two. Bitcoin has a limited supply, established infrastructure, higher security, and larger market value, which makes it more suited to serve as a store of value or a long-term investment. Dogecoin’s lower transaction fees and faster block time make it more suitable for small transactions and everyday use.
It’s important to do your research, understand the risks, and make informed decisions based on your financial objectives. As with any investment, there are no guarantees, and it’s always important to proceed with caution and be aware of the potential risks associated with any investment.
Create DOGE, BTC, and Others on Guarda Wallet
1. Is Dogecoin better than Bitcoin?
It’s difficult to label one cryptocurrency as better than the other, as Dogecoin and Bitcoin serve different purposes. Consider your investment goals and use cases to determine which is more suitable for you.
2. How is Dogecoin different from Bitcoin?
Dogecoin differs from Bitcoin in terms of its origin, faster transaction times, lower fees, and mining algorithm, making it more suitable for smaller transactions and everyday use.
3. Is Dogecoin the next Bitcoin?
While Dogecoin has gained popularity, it’s unlikely to replace Bitcoin, as they cater to different market segments and have distinct purposes within the cryptocurrency ecosystem. Also, the price and adoption of BTC are much higher than DOGE.