Crypto

Bitcoin And Dogecoin – A brief comparison Between The Two

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Bitcoin
  • Bitcoin was the first cryptocurrency developed to decentralize the financial system.
  • Dogecoin, first launched as a joke, became the first meme coin.

What is Bitcoin

Bitcoin is one of the most prominent cryptocurrencies in the crypto market. It influences many cryptocurrencies, even the top currencies like Ethereum and Cardano. Are influenced by the price of Bitcoin. It enjoys a huge market cap of $594,641,387,493 and enjoys a market cap of 50 percent. It was developed in the year 2009 by a pseudonymous person called Satoshi Nakamoto. This Blockchain works on the Proof-of-Work consensus algorithm. 

This algorithm is very energy intensive and every transaction on this blockchain consumes 703.25 kWh of energy. This is enough to run a normal US household for 5 days. Not only this, Bitcoin can handle only seven transactions in a second.

Its mining is also very difficult and requires high-power computers to solve tough mathematical equations to mine new blocks. It has a block time of 10 minutes. This means that adding a new block to the blockchain that contains transaction information takes 10 minutes on Bitcoin. 

The main aim of launching Bitcoin was to challenge the current financial system. Which is a Centralised system. This means all the decision-making power regarding investors’ precious money rests in the hands of a few individuals. These individuals can even manipulate the market as per their requirements. Hence investors’ precious money is at risk. Hence to revolutionize this Satoshi Nakamoto launched Bitcoin which is a pure decentralized cryptocurrency. No single person has the authority to manipulate this currency, not even the developers. 

Dogecoin 

A coin was first introduced as a meme coin in 2013. By two software engineers Billy Markus and Jackson Palmer on a Shiba Inu dog called Kabosu. This project was not launched to make it the most popular meme coin. But the crypto community on Reddit showed a lot of interest in it and this meme coin soon took the form of a tipping currency. 

It was initially used by many crypto enthusiasts to appreciate the efforts of top content creators by gifting their new coins. After the success of this Meme coin. Markus and Palmer took it seriously and integrated a team of 40 contributors to maintain and support this cryptocurrency. To increase its popularity and global acceptance.

A Brief Comparison Between Bitcoin and Dogecoin 

Aim

Bitcoin was developed in 2009 as a decentralized cryptocurrency to change the financial system and make it more secure by giving power to the general public instead of a few individuals. Whereas Dogecoin was only launched as a joke by its developers on a famous Shiba Inu Meme which also became its emblem.

Uses

Bitcoin can be used as a cryptocurrency to buy many real estates, food items, and other useful things. Whereas dogecoin can be currently used to transfer trade and earn money by trading it. Users can also earn money by mining both of these currencies.

Power consumption

Bitcoin works on a proof-of-work algorithm that uses a lot of power in every transaction. It is estimated that a Bitcoin transaction uses as much energy to run an average US household for 5 days. This is very high. Also, the transaction speed of Bitcoin is very slow which is only 7 transactions per second. In contrast, dogecoin only employs 0.12 kWh of energy per transaction. Which is very less than bitcoin. 

Radhe

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