Bitcoin vs. Dogecoin: Which One Should I Choose?

Which should I choose: Bitcoin or Dogecoin? 

While Bitcoin is the best choice for a long-term investment, Dogecoin is a popular choice for traders looking to make short-term profits. 

What is Bitcoin?

Bitcoin, created in 2009, is the most well known and valuable cryptocurrency in the world. 

Bitcoin is designed to enable peer-to-peer transactions — without the need for banks or other intermediaries.  

Bitcoin is well-known for its cap of 21 million units — making it a great store of value and inflation hedge. 

You can use this Bitcoin wallet balance checker to view the value of assets held in your wallet.

What is Dogecoin?

Dogecoin was originally created as a joke in 2013, created by software engineers Billy Markus and Jackson Palmer. Dogecoin featured a Shiba Inu dog from a popular meme, and was designed to poke fun at altcoins that offered little utility to investors. 

Dogecoin rose to prominence after being promoted by celebrities like Tesla CEO Elon Musk. Musk has been a prominent Dogecoin advocate, even going as far as to say that Dogecoin would be accepted as a payment method for Tesla vehicles. 

Dogecoin is now one of the most well-known ‘memecoins’ on the market, and at the time of writing is the 8th-largest cryptocurrency by market cap. 

Bitcoin vs. Dogecoin: Price History 

Winner: Bitcoin

Bitcoin and Dogecoin have both seen significant volatility in their histories. 

While BTC has seen significant volatility, it has consistently grown over time. Most long-term investors in Bitcoin have been handsomely rewarded. 

Dogecoin saw its price peak in 2021. While the asset has seen brief rises since then, it has yet to reach its previous price highs. 

Bitcoin vs. Dogecoin: Use and Utility 

Winner: Bitcoin 

Bitcoin is designed to be an inflation-resistant alternative currency. 

As Bitcoin has matured, more individual and institutional investors are buying into BTC’s value proposition. In 2024, Bitcoin ETFs became available for the first time in the US — showing a new level of acceptance by the traditional financial community! 

Dogecoin is typically used for short-term speculation. While Dogecoin has reached a wide audience, it has been criticized for offering little utility to investors. 

Key Points:

• Bitcoin: Digital gold, institutional acceptance 
• Dogecoin: Short-term speculation 

Bitcoin vs. Dogecoin: Purpose

Winner: 

Bitcoin's purpose is to act as ‘digital gold’ and enable secure, peer-to-peer transactions. 

Dogecoin is meant to be a fun, light-hearted alternative to Bitcoin, aimed at reaching audiences through meme-based appeal. 

Key Points:

• Bitcoin Purpose: Digital currency, store of value
• Dogecoin Purpose: Community engagement, fun

Bitcoin vs. Dogecoin: Supply

Winner: Bitcoin 

Part of the reason for Bitcoin’s appeal is its limited supply. Bitcoin has a fixed supply of 21 million units — which prevents coin inflation from impacting price. 

On the other hand, Dogecoin has an unlimited supply. Every year, 5 billion new units of Dogecoin are added to the supply. 

Many critics claim that DOGE will lose value over time due to this inflation. 

Key Points:

• Bitcoin Supply: Capped at 21 million units
• Dogecoin Supply: Unlimited (inflationary)

Bitcoin vs. Dogecoin: Security

Both Bitcoin and Dogecoin use the Proof of Work (PoW) consensus mechanism to secure their networks. However, Bitcoin's network has significantly more miners, which means that it’s more resistant to potential attacks! 

Key Points:

• Bitcoin Security: Highly secure, high hash rate
• Dogecoin Security: Less secure than Bitcoin, lower hash rate

How to buy Bitcoin and Dogecoin 

Both Bitcoin and Dogecoin are available to purchase on popular exchanges like Coinbase. Here’s how you can start investing in BTC and/or DOGE. 

1. Log in to your exchange. You’ll need to create an account if you haven’t done so already. While creating a crypto exchange account just takes a few minutes, it may take 1-2 days to verify your identity. 
2. Once your identity has been verified, you can add a payment method. 
3. Select the asset you’re interested in buying, then click ‘Buy’. 
4. View relevant fees, then confirm the transaction. 

Conclusion

Bitcoin and Dogecoin cater to different audiences and serve distinct purposes. 

Bitcoin is best suited for those looking for a long-term store of value. 

Your choice between the two should depend on your investment goals, risk tolerance, and how you plan to use the cryptocurrency.