Comparison: Dogecoin vs Bitcoin
No wonder Bitcoin (BTC) and Dogecoin (DOGE) have recently been in the spotlight.
It is revealed that last year the price of bitcoin underwent more than 600% increase. In turn, Dogecoin’s price unbelievably increased 2,400%. That means that the $40,000 invested in Dogecoin a year ago would have turned into $1 million at present.
But these impressive achievements are left in the past, hence the question: which of the two currencies is better to buy right now?
The main similarity between Bitcoin and Dogecoin is the same origin – blockchain technology, an ingenious peer-to-peer system aimed at maximum transparency and security. Detailed explanation of cryptocurrency mining as a process will help to understand its essentiality.
To simplify, all transactions on the Bitcoin (or Dogecoin) network consist of blocks. Miners manage with technical failures by using powerful computers. If their efforts end successfully, they earn the cryptocurrency, and the block is added to the blockchain (which represents a constant record of all previous transactions).
That is why Bitcoin and Dogecoin are decentralized currencies. Miners earn tokens for solving blocks, and after the verification of the solution by all other nodes (computers) in the network the block is added to the blockchain. The main regulator of these transactions is the network itself, unlike fiat currencies such as the US dollar, which are regulated by the central bank.
Moreover, since all nodes are linked with each other, it is almost impossible to attack the blockchain network or falsify its data. For the attack the control 51% of the computing power on the network is needed.
Despite the similarities, Bitcoin and Dogecoin also have several main differences, which are essential for their long-term prospects.
Firstly, at present Dogecoin mining is not subjected to any restrictions, so the process may be constant. To compare, limit of bitcoin is 21 million tokens, 18.7 million of which already exist. After the production of every 210 thousand blocks, the reward is cancelled. So, in the future it may be even cancelled, leaving miners with only source of profit –commission for transactions.
As Bitcoin is limited, unlike Dogecoin, this kind of cryptocurrency should be more expensive, just like gold and other precious metals. However, that’s not the only advantage of bitcoin. In addition to that, it’s the most popular and valuable cryptocurrency.
As of January, there were more than 4 thousand different cryptocurrencies. And regardless of whether you think any of them are smart investments or not, it’s hard to deny the fact that such a significant amount of cryptocurrency provokes serious obstacles.
To sum up
Investors should keep in mind that both Bitcoin and Dogecoin are very volatile investments. For example, bitcoin’s price decreased more than 80% from December 2017 to May 2018. So if you decide to invest, take wild volatility into account.
Investors should also be aware that supporters and opponents of cryptocurrency are not deprived of critical mindset at all. For example, Kathy Wood (CEO of Ark Invest) and Jack Dorsey (CEO of Square) support of bitcoin, unlike organizations such as Goldman Sachs express, along with the renowned economist Nouriel Roubini who called bitcoin “the mother of all scams.”
However, the question is what is better to buy, not whether this or that is a profitable purchase. And from this point of view, Bitcoin has several advantages over Dogecoin: it is rarer, more popular, and more valuable. That’s why bitcoin is winning this contest.
What caused the sudden drop of Tesla shares
The electric car maker’s shares are now trading about 25% below the historic high reached earlier this year
What has happened
The value of shares of Tesla (TSLA) suddenly decreased on Tuesday. The price of securities declined by 5.2%, ending the trading session with a drop of 4.4%.
This decline was most likely linked with sudden decrease in the prices of many growth stocks towards the end of the session.