Dogecoin Was Made for “Sillies”
One of the things that are different about dogecoin and bitcoin is that each was made on a different idea than the other one.
A white paper written by Satoshi Nakamoto, a pseudonym used by the person or people who made bitcoin, was very detailed when it was released in 2009.
Nakamoto wanted bitcoin to be a well-known, decentralized digital currency that was not owned by anyone. They think of Bitcoin as digital gold and a way to protect against inflation.
A lot of institutional and private investors have grown to trust bitcoin over the last 12 years because of this, which made it sell for record-high prices this year.
Because dogecoin was made as a joke in 2013, Billy Markus and Jackson Palmer made it. based on the “Doge” meme, which shows a Shiba Inu dog. Markus and Palmer didn’t want dogecoin to be seen as a real thing.
Markus said in a recent Reddit post that it was “made for silly people.” In the end, “I made it up as I went along.” Putting it together took about three hours.
As a result, dogecoin doesn’t have as much technical development and isn’t as safe as bitcoin.
During the years, Markus was surprised to see how quickly the dogecoin community grew because they all had the same favorite Shiba Inu dog meme. The cryptocurrency grew even more recently because of social media buzz from people like Elon Musk and Mark Cuban.
Ledbetter says that “Dogecoin is now a kind of joke.”
For many people, investing is becoming a form of entertainment, says Demirors. This is what people are doing to have fun with investing. When it comes to dogecoin, “the meme is the message.” Our markets will change as the influence of FinTwit [financial industry Twitter] grows. Memes and the way they move them will change, too.”
There have been some people who say that investing in both dogecoin and bitcoin can be risky because cryptocurrencies are very volatile. Experts, on the other hand, say that investors should be careful before buying dogecoin because they think its rise is very risky. Experts say that people should only put money into things like stocks and bonds if they can afford to lose it.
Bitcoin Has a Well-Funded Ecosystem
Though for many years dogecoin was developed by engineers who copied the exact code from bitcoin software, bitcoin has an extensive and well-funded ecosystem that does not exist with dogecoin.
Mike Novogratz, a crypto bull and CEO of Galaxy Digital, told CNBC’s “Squawk Box” on April 20 that bitcoin is “a well-thought-out, well-distributed store of value that’s lasted for 12 years and is growing in adoption, where dogecoin has two guys that own 30% of the entire supply.”
“I worry that, once the enthusiasm rolls out, there are no developers on it, no institutions are coming in. But it’s got this moniker of the people’s coin right now,” Novogratz told CNBC on Wednesday.
“It’s a little bit of a middle finger to the system. I think it’s dangerous because once that enthusiasm dies if it dies, you could have a long way down. But I don’t want to discredit.”
‘Scarcity’ Is Built Into Bitcoin
Several things are different between dogecoin and bitcoin, says Meltem Demirors, the chief strategy officer for CoinShares.
One of the “most important” things, she says, is how many of each there are.
As Demirors says, “more doge is printed every minute of every day.” This means there could be an “infinite supply” of doge.
As an example, “10,000 more dogecoins are made each minute of each day.” That’s about 15 million Doge per day or more than 5 billion Doge per year, she says.
Unlimited supply can make things less valuable in the long run.
Because there are only 21 million bitcoins in existence, there is a “built-in scarcity” that means they are valuable because they are rare, says James Ledbetter, editor of the fintech newsletter FIN and a CNBC contributor. This is similar to how gold or diamonds are valuable because they are rare, he says.
Bitcoin bulls say that because the currency is limited, as demand grows, the price of bitcoin should. This is why they think it’s a good idea to keep it for the long term.
Because of this, “I see most people trading dogecoin on a short-term basis,” with investors hoping to make a quick profit, and they choose to hold on to bitcoin for a long time, says Demirors.
Why Dogecoin Is Better Than Bitcoin for Transactions?
Do you know Elon Musk, the CEO of Tesla, is also thinks that Dogecoin is better than Bitcoin?
Dogecoin is a better crypto coin than Bitcoin when it comes to how many transactions there is each day. This was said by the CEO of Tesla and SpaceX. It costs a lot to make a transaction with Bitcoin, and the value of each transaction is very low. Space-wise, it can be used to store value.
It, on the other hand, was made as a joke, but it’s better for transactions than Bitcoin. Dogecoin has a lot more potential than Bitcoin when it comes to how many transactions you can make each day.
This was made by software engineers Billy Markus and Jackson Palmer in 2013. They wanted to make a faster and more “fun” way to pay for things than Bitcoin. It was made as a joke about the many fake crypto coins that were being made at the time. Its name and logo are based on a Shiba Inu meme that went viral a few years ago.
Transaction fees, or “gas fees,” for the Dogecoin remain low, Coindesk says. A single transaction on the Bitcoin blockchain can cost more than $15. While the Dogecoin transaction fee is about $0.65 per transaction.
This comes after Tesla CEO Elon Musk said on Tuesday that the company would start taking Dogecoin as a form of payment for goods on a trial run.
The tweet said: “Tesla will make some merch that can be bought with Doge and see how it goes.”
Many different kinds of things are sold by Tesla. These include clothing and belt buckles, mini models of Tesla cars, a quad bike for kids called “Cyberquad”. And the whistle “Cyberwhistle,” which looks like the much-anticipated Cybertruck.