Bitcoin Vs Dogecoin: A Complete Comparison

At first sight, a comparison of these coins seems like a strange decision. Because Dogecoin is a meme coin that entered the world as a result of a lingering joke. In contrast, Bitcoin is the very first cryptocurrency that transformed the finance system and pioneered decentralization. Everything is obvious, or not?

However, from a funny meme, DOGE has turned into a worthy competition, and even Elon Musk has recognized its potential. Let's take a closer look at the key features of each player and find out their differences and similarities.

What Is Bitcoin?

Bitcoin is the first cryptocurrency that was launched in 2009. The philosophy of this digital asset comes from the mystery person or a whole group known as Satoshi Nakamoto. The identity remains unknown to this day. They introduced Bitcoin as an alternative to the traditional banking system.

At that time, BTC offered lower transaction fees compared to existing online payment methods. Additionally, the coin stood out for its convenience in terms of independence from the state. A decentralized network, not governmental authorities, manages it. This process facilitates transaction processing and recording in the blockchain.

What Is Dogecoin?

DOGE is a cryptocurrency with open-source code and a Shiba Inu as a logo. It refers to altcoins and meme coins.

Two programmers from the USA created Dogecoin in 2013 as a joke to Bitcoin and its low transaction speeds. But the developers didn't focus much on the security of DOGE. So, this coin is a good choice for payments and purchases, but it isn’t a reliable way to store large assets. You can safely exchange these meme coins with friends, leave tips, or make small charges.

Bitcoin Vs Dogecoin: Key Differences

As you can see from the above, despite the differences in network functions, the cryptocurrency players share some common points. Let’s closely examine the key factors to answer the question: Are DOGE and BTC truly similar to each other?

Transaction Speed

First, they differ in transaction speed. Dogecoin can handle about 30-40 transactions per second (TPS), with a block creation time of a minute. DOGE operates faster due to its larger blockchain size compared to the BTC. Bitcoin processes 3-7 TPS because of its long block creation time of 10 minutes.

To finalize a transaction, both networks typically require several confirmations. In the Bitcoin network, the standard is 6 and takes about 60 minutes. For Dogecoin, the same confirmations take only 6 minutes. Thus, DOGE significantly surpasses BTC in terms of maximum TPS, making it more suitable for handling a high volume of small operations in a short time.

Fees

The second important key point for a cryptocurrency is transaction fees. In the Bitcoin blockchain, they are typically higher (ranging from $1 to $5) due to the more limited block size and high demand for transaction processing. In contrast, Dogecoin's fees are significantly lower — usually less than $0.01 — thanks to the larger supply of coins. Thus, DOGE is well-suited for small deals because of its minimal fees, while BTC can be pricier, especially during periods of high network activity.

Consensus Mechanism

The crucial aspect for BTC and DOGE’s comparison is that both cryptocurrencies operate on the Proof-of-Work (PoW) consensus mechanism. BTC relies on the SHA-256 model, which requires significant computational power. A drawback is the reliance on expensive ASIC (Application-Specific Integrated Circuit) hardware; without this technology, mining isn’t feasible. This process ensures safety, as the complexity of the calculations protects against hacker attacks. Consequently, BTC's decentralized web remains one of the most secure in the crypto world today.

On the other hand, Dogecoin uses the Scrypt base. It’s less dependent on ASICs and makes mining more accessible to a broader audience. Miners can use standard graphics processing units (GPUs), lowering the entry barrier to the industry. Additionally, Dogecoin utilizes a merged mining net with Litecoin, which boosts its computational power.

Thus, Bitcoin offers a big level of security, but mining is less reachable to ordinary users due to the expensive equipment. On the other hand, Dogecoin is more accessible and decentralized, making it more attractive to the community. Although DOGE falls short of Bitcoin in terms of security.

Bitcoin Vs Dogecoin: Which Is Better To Buy?

Well, we’ve compared the main principles of both crypto players and are ready to address one of the questions of the article: which one is better to buy?

Risk resilience is a crucial factor that investors should consider when purchasing digital assets. Even the most secure crypto unit can remain volatile. For instance, in a single day, the value of Bitcoin may vary by thousands of dollars.

As a Dogecoin, it didn’t aim to be a financial asset because of its infinite supply. In the long term, inflation will continue to erode its value. In contrast, BTC has a hard cap of 21 million coins, which contributes to the funds' value growth due to its scarcity.

It would also be incorrect to compare the crypto players based on price dynamics alone, as BTC has reached a value of $68,000, while DOGE can be bought for less than $1. However, a notable advantage is that the entry threshold for Dogecoin is much lower for its affordability.

It’s significant to remember that BTC emerged as an alternative to the entire financial market and drew global attention to digital money. It stands out as a revolutionary force. DOGE, on the other hand, was originally conceived as a meme and a humorous parody of a “faster Bitcoin”. Accordingly, they’ve completely different scales and BTC is undoubtedly the preferred investment option.

The choice of which coin to buy depends only on you and your needs. If you want to store a large amount and exaggerate your income, Bitcoin may be right for you. But always keep the risks in mind. If you need a cryptocurrency for small transactions and purchases, the popular DOGE could be a very tempting suggestion.

Bitcoin Vs Dogecoin: A Head-To-Head Comparison

Finally, we’ve prepared a comparative table to summarize everything discussed. You can see the differences and similarities visually:

Criteria	Bitcoin	Dogecoin
Coin Issue	Bitcoin Limited supply of 21 million	Dogecoin Unlimited supply
Mechanism	Bitcoin Proof-of-Work, SHA-256	Dogecoin Proof-of-Work, Scrypt
Goal	Bitcoin Digital currency and alternative to fiat	Dogecoin Tipping and small transactions, fun community
Price	Bitcoin Higher price	Dogecoin Lower price
Speed	Bitcoin Takes about 10 minutes to confirm transactions	Dogecoin Takes about 1 minute to confirm transactions
Scalability	Bitcoin About 3-7 TPS	Dogecoin About 30-40 TPS

As a result, we believe that any investments in Dogecoin and meme coins should be involved in only a small part of your cryptocurrency portfolio. However, during favorable conditions, it could potentially become one of the most successful sales. As for Bitcoin, it’s the "grandmaster" of all virtual funds. It’s hard to imagine a well-balanced crypto wallet that doesn’t include at least a tiny piece of BTC.

But, no matter which cryptocurrency you choose, you may easily buy or sell it on the Cryptomus P2P exchange. With its user-friendly interface and pleasant design, tracking the volatility of your favorite digital currency will be especially enjoyable. Are you a Bitcoin enthusiast, or do you share Elon Musk’s opinion about DOGE? Write it in the comments.