Bitcoin and Dogecoin are the most popular Crypto Auto-trading bot in the world today, but they differ in several ways, which can make choosing between them somewhat tricky. If you are planning to trade between Bitcoin and Dogecoin, but it seems to be confusing to choose one, there are certain important points that you need to note.
What Is Bitcoin? A Brief Overview
Before diving into Bitcoin investment, at first, you should have an overall better understanding of what Bitcoins are. Bitcoin is completely decentralized in nature; that means any governing financial authority does not control it.
Moreover, Bitcoins run on a peer-to-peer payment system that uses blockchain technology, which helps make transactions more secure and less susceptible to fraud. The rise in popularity of Bitcoin has led some people to invest in Bitcoins in Bitcoin Era for financial gain.
What Is Dogecoin? A Brief Overview
After Bitcoins comes Dogecoins. Dogecoins were first created in December 2013; such coins were initially called joke currency. It is based on an internet meme featuring a Shiba Inu dog. It reached $1 billion market cap within less than a year of its launch, but as of November 2017, its market cap has shrunk to $313 million. The primary appeal of Dogecoin is that it is fun and different from other digital currencies in terms of supply and creation methods.
Key Facts of Bitcoins and Dogecoin
With the increasing popularity of cryptocurrencies, Bitcoins and Dogecoin are growing at a rapid pace. Some years back, a handful of financial investors was aware of the Bitcoin investment concept. Many banks now offer access to these services for their customers to invest in bitcoin easily and securely.
If we talk about Bitcoin transactions, every transaction gets recorded safely and securely in a public ledger. Instead, every time a transaction occurs, it is validated by nodes on its network before being added to an online public ledger that tracks it.
Because of this, payments using Dogecoin are virtually instantaneous and nearly free of charge. It’s also important to note that transactions cannot be tracked back to individuals or addresses. Therefore, users can enjoy a certain level of anonymity in their transactions. However, it’s possible for those with advanced knowledge about blockchain technology to track coins as they are transferred from address to address over time.
Price And Exchange Rate
The bitcoin price is currently around $800, with a single dogecoin valued at about 0.00000047 BTC (or about half a cent). This translates to 1 bitcoin being worth almost 30 times as much as one dogecoin. However, bitcoins are divisible into smaller units while doges are not. Many small transactions can add up to a substantial amount of money in fiat terms, leading many to believe that there is value in splitting up their bitcoins into smaller denominations if they plan on conducting lots of micropayments or online purchases.
Historical Performance of Both Currencies
The bitcoin price has been on a steady incline, rising steadily since its introduction. Since then, it has made a few blips downward but, for the most part, has remained constant or even risen in value. In just over three years of existence, it has risen to become worth about $120 per bitcoin in 2015. A person who bought 100 bitcoins when they were first introduced would now be worth approximately $7 million dollars!
Bitcoins are only 21 million in existence, and no more will be created after that number is reached, so as bitcoin becomes harder to obtain, its price will continue to rise due to demand. Bitcoins are still under 50% market penetration, meaning there is still much room for growth even with current buying power because there aren’t enough people using it yet.
Both Bitcoin and Dogecoin have their own set of advantages. While both of them serve as a medium for peer-to-peer transactions, Bitcoin is faster, more secure, and more expensive than Dogecoin. If you are looking for a safe investment option, Bitcoin should be your choice over Dogecoin. However, if you are looking to invest just for fun and to try out different things, you should go with Dogecoin.