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Bitcoin vs. Dogecoin: Which Is Better? – MUO – MakeUseOf

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One is the first-ever crypto, the other is based on a dog meme. Which is the better option?
Bitcoin and Dogecoin are two of the most popular cryptocurrencies out there today. Both have a huge market cap and trading volume, but how exactly do they differ? What separates these two cryptocurrencies from one another, and which comes out on top?
If you're into crypto, you've undoubtedly heard of Bitcoin, the world's first and most popular cryptocurrency, created by the anonymous Satoshi Nakamoto in 2008. Though Bitcoin was once almost worthless, it has risen through the ranks to become a highly valuable asset. Its price fluctuates constantly and once stood at almost $70,000.
Despite its ups and downs, Bitcoin has maintained its place at the top of the crypto ladder for years, and it doesn't look like it will be changing anytime soon.
Bitcoin's creator (or creators) has always remained anonymous, though they are known by the pseudonym "Satoshi Nakamoto." Nakamoto still has a huge holding of Bitcoin, worth billions of dollars. But there's a lot of speculation surrounding Bitcoin's founder, and no one is entirely sure what is fact or fiction. What we do know is that Nakamoto is responsible for creating the world's most popular cryptocurrency to date.
Bitcoin exists on a blockchain, which is essentially a chain of encrypted data. Each Bitcoin transaction is recorded chronologically and permanently on the Bitcoin blockchain using the proof of work mechanism. Proof of work involves individuals known as miners solving complex computational problems to confirm transactions and secure the blockchain.
Miners are paid to keep the Bitcoin network secure, and these rewards can be huge if an individual miner secures a single block. However, miners often work in groups known as pools and share the rewards. The current Bitcoin mining reward is 6.25 BTC, which is around $100,000 at the time of writing, so it's no surprise that over a million individuals have decided to take on this venture.
Some would say that Bitcoin's proof of work mechanism is outdated compared to other mechanisms, such as proof of stake. This is because proof of work isn't very energy efficient, has slower transaction times, and charges higher fees. Bitcoin is known to have frustratingly long transaction times, sometimes exceeding hours. Unfortunately, Bitcoin's network is incredibly popular but not scalable.
In crypto, scalability refers to the ability of a platform to expand with and support increasing demand. For example, the Bitcoin network was once pretty quiet, but a lot has changed. Currently, over 250,000 Bitcoin transactions are processed daily, which is no small feat. But as the popularity of Bitcoin grows, it becomes harder for the network to keep up.
This is what gives way to long transaction times and high fees. Right now, thousands of Bitcoin transactions are sitting in the mempool, a sort of waiting room where transactions go before they're confirmed. Transactions can remain in the mempool for a while, which has given way to Bitcoin transaction accelerators that one can use to speed up confirmation times. But this doesn't address Bitcoin's problem with scaling.
Bitcoin has a finite supply of 21 million BTC. Once this limit is reached, no more coins can be put into supply. This was an intentional move by Nakamoto and is supposed to help Bitcoin maintain value and hedge against inflation.
Unlike Bitcoin, Dogecoin began as something of a joke, or a meme coin, poking fun at the perceived absurdity of cryptocurrency. Launched in 2014 by Jackson Palmer and Billy Markus, no one expected Dogecoin to become a legitimate cryptocurrency at the time of its creation.
Dogecoin is named such because of the viral "doge" meme that was incredibly popular online when Dogecoin was founded. The coin's logo is the infamous doge image itself. A funny crypto based on a funny meme. Makes sense, right? Well, Dogecoin's future was set to be very different from what its creators envisioned.
Though Bitcoin's source code was entirely original, Dogecoin's was based on that used for Litecoin, another proof-of-work cryptocurrency. Unfortunately, because Dogecoin was supposed to be nothing more than a joke, its creators didn't bother creating any original code. So, like Bitcoin, Dogecoin also uses the proof of work consensus mechanism, requiring miners to verify transactions, circulate new coins, and secure the network.
This is an energy-intensive process but is still profitable for miners. However, because Dogecoin is worth considerably less than Bitcoin (which we'll discuss more later), the mining reward is lower. At the moment, the reward for mining a block is 10,000 DOGE, which equates to around $800. This is still a decent amount but doesn't come close to the current Bitcoin mining reward.
Dogecoin is also based on a proof-of-work blockchain and cannot scale very well. Though Dogecoin can process around 33 transactions per second, around twice that of Bitcoin, this still isn't very impressive compared to many proof-of-stake cryptos like Solana and Avalanche.
Unlike Bitcoin, Dogecoin has an infinite supply. This means there is no cap on how many Dogecoins can be in circulation at once. There are currently over 130 billion Dogecoin in circulation, which is constantly increasing.
When it comes to security, Dogecoin is known to be a little less secure than Bitcoin, even though both use the same consensus mechanisms. After all, Dogecoin was launched as a joke, while Bitcoin had serious intentions behind it. More thought was put into Bitcoin's security, and the network receives frequent updates to improve upon this element.
This isn't to say that Dogecoin isn't secure. Cryptocurrencies are based on blockchain technology designed to store data safely. But there are other factors, such as the development team and source code, that should also be taken into account.
So, between Bitcoin and Dogecoin, which is better? The answer to this depends on what you plan to do with either crypto. If you just want to mine, Bitcoin has a higher reward but a very high mining difficulty, meaning it is harder to mine a Bitcoin block than a Dogecoin block. In addition, both cryptos require an ASIC for mining, which can run up very high up-front and operational costs.
In terms of investment, Bitcoin and Dogecoin are exposed to volatility, meaning both can suffer losses in value at any given moment. Both use the same consensus mechanisms, too, so there's not much difference. However, Bitcoin has a finite supply, which can help tackle the effect of inflation. So, this may turn out to be a good thing over time once the Bitcoin supply cap is reached.
Bitcoin and Dogecoin have their loyal community, but this doesn't mean you have to choose one of the two. Many investors choose both cryptocurrencies as investment options, while others choose neither. Deciding which crypto is best for you depends on a variety of factors, including security, reputation, and price. It's important to take note of these things before investing.
It's difficult to crown a winner between Bitcoin and Dogecoin. There's no denying that both are volatile, but there are additional factors that differentiate them from one another. So, if you can't seem to choose between the two, keep these factors in mind to help you make the most informed decision.
Katie is a Staff Writer at MUO with experience in content writing in travel and mental health. She as a specific interest in Samsung, and so has chosen to focus on Android in her position at MUO. She has written pieces for IMNOTABARISTA, Tourmeric and Vocal in the past, including one of her favourite pieces on remaining positive and strong through trying times, which can be found at the link above. Outside of her working life, Katie loves growing plants, cooking, and practicing yoga.

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Bitcoin drops to lowest in more than a week, ether slides as FTX collapse ripples through crypto market – CNBC

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Bitcoin has shot up 50% since the new year, but here's why new lows are probably still ahead – The Conversation Indonesia

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PhD Researcher in Finance, University of Bath
Senior Lecturer in Corporate Finance, University of Bath
James Kinsella works part-time as an investment analyst for Tyndall Asset Management.
Richard Fairchild does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

University of Bath provides funding as a member of The Conversation UK.
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To the delight of investors across the cryptosphere, the price of bitcoin (BTC) has rallied over 53% since its low of US$15,476 (£12,519) in November. Now trading around US$23,000, there’s much talk that the bottom has finally been reached for the leading cryptocurrency after a year of painful decline – in November 2021, the price peaked at almost US$70,000.
If so, it’s not only good news for bitcoin but the whole market in cryptocurrencies, since the others broadly move in line with the leader. So is crypto back in business?
The past is littered with various periods of market turmoil, from the global financial crisis of 2007-09 to the COVID-19 collapse in 2020. But neither of these is a particularly good comparison for our purposes because they both saw sharp drops and recoveries, as opposed to the slow unwinding of bitcoin. A better comparison would be the dotcom bubble burst in 2000-02, which you can see in the chart below (the Nasdaq is the index that tracks all tech stocks).
Nasdaq 100 index 1995-2005
Look at the bitcoin chart since it peaked in November 2021 and the price action looks fairly similar:
Bitcoin bear market price chart 2021-23
Both charts show that bear markets go through various periods where prices rise but don’t reach the same level as the previous peak – known as “lower highs”. If bitcoin is following a similar trajectory to the early 2000s Nasdaq, it would make sense that the current price will be another lower high and that it will be followed by another lower low.
This is partly because like the 2000s Nasdaq, bitcoin seems to be following a pattern known as an Elliott Wave. Named after the renowned American stock market analyst Ralph Nelson Elliott, this essentially argues that during a bear phase, investors shift between different emotional states of disappointment and hope, before they finally despair and decide the market will never turn in their favour. This is a final wave of heavy selling known as capitulation.
You can see this idea on the chart below, where bitcoin is the green and red line and Z is the potential capitulation point at around US$13,000 (click on the chart to make it bigger). The black line is the path that the Nasdaq took in the early 2000s. The blue pointing finger above that line is potentially the equivalent place to where the bitcoin price is now.
Bitcoin now vs Nasdaq in the early 2000s
The one other thing to note on the chart is the wavy line that’s moving horizontally along the bottom. This is the stochRSI or stochastic relative strength index, which is an indication of when the asset looks overbought (when the line is peaking) or oversold (when it’s bottoming).
A sign of a coming shift is when the stochRSI moves in the opposite direction to where the price is heading: so now the stochRSI is coming down but the price has held up around US$23,000. This too suggests a fall could be imminent.
Within markets, there is often a game that investors from institutions such as banks and hedge funds play with amateur (retail) investors. The aim is to transfer retail investors’ wealth to these institutions.
This is particularly easy in an unregulated market like bitcoin, because it is easier for institutions to manipulate prices. They can also talk up (or talk down) prices to stir up retail investors’ emotions, and get them to buy at the top and sell at the bottom. This “traps” the irrational investors who buy at higher prices, transferring wealth by giving the institutions an opportunity to convert their holdings into cash.
It therefore makes sense to compare how the retail and institutional investors have been behaving lately. The following charts compare those crypto wallet addresses that hold 1 BTC or more (mostly retail investors) with those holding upwards of 1,000 BTC (institutional investors). In all three charts, the black line is the bitcoin price and the orange line is the number of wallets in that category.
Retail investor behaviour
Institutional investor behaviour pt 1
Institutional investor behaviour pt 2
This shows that since the FTX scandal back in November, which led to the world’s second-largest crypto exchange collapse, retail investors have been buying bitcoin aggressively, resulting in the highest number of addresses holding at least one BTC ever. On the other hand, the biggest institutional investors have been offloading. This suggests that the institutional investors agree with our analysis.
There are those who argue that bitcoin is a bubble and that ultimately cryptocurrencies are worthless. That’s a separate debate for another day. If we assume there is a future for blockchains, which are the online ledgers that enable cryptocurrencies, the key question is when bitcoin will reach the accumulation phase that typically ends a bear phase in any market.
Known as Wyckoff accumulation, this is where the price of the asset repeatedly tests two areas: the upper bound where traders previously sold heavily enough for the price to stop rising (known as resistance), and the lower bound where traders bought heavily enough that the price stopped going down (known as support).
At the point where institutional investors decide the lower bound has proved to be sufficiently resilient – in other words, they think the price is cheap at that level – they will start buying the asset again. That moment is only likely to come after there has been a capitulation.
Of course, history does not repeat itself exactly. It may be this is the first time that retail investors have outsmarted the large institutions, and that the only way is now up.
More likely, however, there is more pain on the way. With a recession on the cards, unprecedented job layoffs and weak retail data coming out of the US, it doesn’t point to the kind of optimism that tends to move markets higher. It would therefore make sense to brace yourself for another plunge in the price of bitcoin and the rest of the crypto market.
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Copyright © 2010–2023, The Conversation US, Inc.

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Crypto Price Today Live: Bitcoin marches to $17K; Solana, XRP & Uniswap rally up to 13% – Economic Times

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