Cryptocurrency is a popular investment strategy for millions of people. In fact, there are now over 100,000 bitcoin millionaires across the globe.
The popularity of cryptocurrency should come as no surprise. Its returns are far outpacing traditional stocks and index funds.
There are many different cryptos to choose from. Bitcoin and dogecoin are amongst the two most popular investment options.
Read on for the ultimate bitcoin vs dogecoin investors’ guide. Explore the two different types of cryptocurrencies and their long-term investment prospects.
Investing in Bitcoin
Bitcoin is a virtual currency that has been in existence for more than a decade now. Unlike traditional currencies, there is no government or central bank behind bitcoin.
Instead, it is a decentralized system that does not require third-party involvement. Transactions are recorded and verified on an ultra-secure blockchain ledger. There is a fixed supply, and new coins are created by bitcoin miners.
While once frowned upon by major investors like Warren Buffett, bitcoin is now mainstream. Global governments recognize bitcoin as a form of payment.
Celebrities and athletes alike are negotiating their contracts to be paid out in bitcoin. Companies such as bytefederal.com allow people to buy bitcoin at an ATM.
There is potential for a significant return on investment in bitcoin. Five years ago, investors could acquire bitcoin for less than $3,000.
It is now trading for over $35,000 with highs in excess of $61,000. These are not the type of returns that you can get on the S&P 500.
Investing in Dogecoin
Dogecoin is one of the many crypto investments that were inspired by the success of bitcoin. This cryptocurrency type started in satire. It was named after a viral dog meme.
However, dogecoin took off when billionaire Elon Musk inexplicably endorsed it. Musk frequently tweets his support for dogecoin and his companies accept it as a form of payment.
As a result of Musk’s support, dogecoin has experienced some major spikes. Dogecoin was once valued at less than one cent. It shocked the investment community in 2021 by reaching nearly 75 cents per coin.
There are some fundamental differences between dogecoin and bitcoin. For starters, dogecoin does not have a supply cap. Currently, there are 133 billion coins in supply and no plan to cap it.
Also, bitcoin has a robust blockchain system behind it with continual development and advancement. Dogecoin does not have a comparable level of development with bitcoin or Ethereum.
Dogecoin’s market value is driven primarily by speculation and online news. That being said, there is an opportunity for gains. At one point, dogecoin was up 26,000% in just a six-month period.
Bitcoin vs Dogecoin Guide
Now you have a basic understanding of both bitcoin and dogecoin. There is an opportunity for a positive return on investment with both cryptocurrencies.
While they are fundamentally different, both are virtual currencies that are speculation-driven. Bitcoin is more mature and widely accepted as a form of payment.
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