There’s been a lot of talk lately about which cryptocurrencies will prevail over the long run. Bitcoin (CRYPTO:BTC) was the first created and has enjoyed a significant first-mover advantage. Meanwhile, Dogecoin (CRYPTO:DOGE) is a fork of existing technology and was originally created as a joke. Yet both are two of the most popular and among the top cryptocurrencies by market cap.
So, you may be wondering if Dogecoin is a better buy than Bitcoin. After all, if you compare the underlying technology of both blockchains, although they are similar in a lot of ways, Dogecoin’s is better.
With that being said, though, the economics of Bitcoin is more promising, given that its supply is capped. Dogecoin, however, is consistently increasing its supply of coins.
So, which is the better buy today?
Like I said above, between the two, Dogecoin has the better technology. But as we’ve seen, as important as the technology is, that’s not the only factor in determining a cryptocurrency’s success.
Although Dogecoin’s technology is better, it and Bitcoin have a lot of similarities. For example, Dogecoin transactions happen every minute, whereas it takes Bitcoin 10 minutes to confirm a transaction. Furthermore, Bitcoin can only process seven transactions per second, whereas Dogecoin can process 33.
However, both have a proof-of-work consensus to validate transactions meaning they are both energy-intensive compared to some of their competitors.
As I’ve said, though, the technology isn’t everything. Another major factor in determining a cryptocurrency’s potential is its community. By building a strong community, cryptocurrencies can naturally grow by word of mouth. However, it’s also crucial to have a tonne of contributors, developers, users, and investors who are committed to your project for the long haul.
Especially in the crypto industry, where there is so much potential, having a strong community can help ensure that the price stays stable, as we go through periods of stronger headwinds like we’re seeing today.
This community is one of the major reasons Dogecoin continues to be the most popular and one of the most highly valued cryptocurrencies.
But that doesn’t mean it’s worth an investment today. The fact that it’s been so volatile in the past, more than many other cryptocurrencies, and because it’s prone to speculation, Dogecoin is a high-risk investment. Plus, given that its supply is not capped, investors who own Dogecoin today will only continue to be diluted.
Although Bitcoin’s technology has several drawbacks, that hasn’t seemed to hurt its position as the most dominant cryptocurrency in the industry.
Its first-mover advantage has been significant. Bitcoin has always been the leader in the cryptocurrency space, and even with tonnes of high potential technology coming out and continuous innovation in the sector, it’s still more than double the size of the next largest coin.
This first-mover advantage has rewarded Bitcoin with being one of the most common trading pairs when buying or selling cryptocurrencies. Plus, long-term investors can now participate in DeFi by wrapping their Bitcoin and sending it to a smart contract compatible exchange, such as Ethereum (CRYPTO:ETH). You can do this with Dogecoin, too. However, because Bitcoin is larger and more popular, there are more opportunities to earn a yield with Bitcoin.
So, if you’re wondering which cryptocurrency is better to buy and hold for the long run, because Dogecoin is still prone to so much speculation, I’d give the edge to Bitcoin.