Doge Vs Bitcoin: What’s The Better Investment In 2023?

Although the cryptocurrency market has continued to experience significant volatility over the last couple of years, investment into the sector continues to pour in from both institutional and retail investors. Despite the industry having been shaken by several scandals in the last 12 months, interest in the overall sector remains strong.

This has proved true for both Dogecoin and Bitcoin, which have remained among the most active cryptocurrencies in circulation today.

As we can see from the recommended Doge casinos, Dogecoin appears to be as popular as ever. While some of the media attention regarding it has subsided in recent months, millions of individuals around the world use it for a wide variety of purposes. This includes everything from playing at online casinos to online games.

Putting aside the different ways you can use Dogecoin for just a moment, an equally important question is whether it still makes sense as an investment. This is a particularly important question considering the tumultuous year crypto investors have had as well as the fact that the market now appears to be back on an upward trend.

So, which makes for the better investment in 2023: Dogecoin or Bitcoin?

Doge vs Bitcoin: What are the main differences?

Before we consider how they compare as investments, we should first set out some of the key differences between these two currencies.

In addition to having vastly different development histories, we should first keep in mind that the two coins were created with radically different purposes in mind. 

While Bitcoin was the first crypto ever created and was intended to create a revolutionary new financial system for the internet, Dogecoin was created to capitalize on the popularity of the ‘Doge’ meme. Although Dogecoin has since evolved beyond being simply a meme, this whimsical sentiment is still at the heart of the project.

Another major difference is how many Dogecoins and Bitcoins can be created. Bitcoin has a hard limit of 21 million coins built into its source code, which creates a degree of scarcity from the beginning and helps to prop up its value. In contrast, Dogecoin has no limit on how many units of Doge can be created, which essentially builds inflation into the ecosystem.

Similarly, while Dogecoin tends to be less secure and easier to mine, Bitcoin is the opposite and presents a much more secure network that makes it more difficult to mine new BTC. For investors looking to mine units of crypto, this could make Dogecoin a more attractive prospect!

The ease of mining also impacts how fast transactions can be processed. Dogecoin is able to more efficiently process transactions and has a quicker block-time, while Bitcoin is significantly more sluggish at both.

Dogecoin and Bitcoin also have some similarities. For instance, the actually mining process is relatively similar, despite the fact they perform at very different speeds. They are both also distinct from other popular coins such as Ethereum as they operate on a proof-of-work system, rather than a proof-of-stake system.

Doge vs Bitcoin: Which has performed better over time?

In terms of their historical value, which coin has performed better over time?

Although their value has changed quite significantly over time, Dogecoin has never seriously challenged the total market capitalization of Bitcoin.

The total market capitalization of Bitcoin peaked in November 2021 when it soared towards $1.28tn dollars. Although this has decreased significantly since then, the highest Dogecoin has ever reached is $88.8bn in May 2021.

Another factor to consider is the cost and return on investment of both coins. Dogecoin has never managed to break the $1 mark, while the value of Bitcoin has peaked at well over $60,000. As such, the barrier to entry is significantly higher for investing in Bitcoin.

In terms of the return on investment, Bitcoin has posted an average annual return of 1,576% and a total return of 18,912% between 2010 to 2021. In contrast, Dogecoin has posted an annual growth rate of just 232%.

What is the better investment in 2023?

As we can see, there are some significant differences between Dogecoin and Bitcoin, in addition to how they have performed over time. Despite this, the question remains: what’s the better investment?

While an argument can be made for both coins, there is no getting around the fact that Bitcoin has seen far greater adoption than Dogecoin. A massive amount of institutional investment has been poured into Bitcoin in recent years, which has helped to keep its price relatively high, and this is despite massive price fluctuations. This means that Bitcoin has tended to be a much safer investment than Dogecoin.

On the development side of things, Bitcoin has also experienced arguably greater support. It has undergone several upgrades over the years, which have helped improve its functionality.

Despite this, Dogecoin could be a solid option if you are looking to dip your toe into the cryptocurrency investing world but don’t have quite as much capital to play with. Bitcoin is still relatively expensive to buy into, whereas Dogecoin can be acquired for a fraction of a dollar.

Ultimately, the choice will be a purely individual one. Dogecoin is a riskier investment but has a lower barrier to entry, while Bitcoin is the biggest player in the industry and remains incredibly popular.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Foxy

Coincu News