Bitcoin is the most popular cryptocurrency in the world, and even though others are in contention to break its dominance, Bitcoin still remains far more popular. Why not? After all, it was the first cryptocurrency blockchain introduced to people.
Market Value Gap
Bitcoin was started in 2009 and Dogecoin began roughly four years later in 2013. But at the time of writing, the market value of Bitcoin is way more than Dogecoin. It could also be attributed to the fact that Dogecoin became popular only in recent times.
To put in perspective, Bitcoin has a market cap of close to $1000 billion and Dogecoin is only around $10 billion. Therefore, there is a lot to cover up for Dogecoin if it has to become the next Bitcoin. Can it be covered up? Let’s examine.
Bitcoin And Dogecoin – Analysis And Similarities
Dogecoin and Bitcoin are similar in some ways though, as both are cryptocurrency blockchains. In this respect, Ethereum is the odd one out because it is a platform for decentralized applications.
The market cap of Bitcoin is too much because it always has the first mover advantage. Therefore, it has a large community as well as interest from a lot of media houses and investors around the world. Bitcoin as of now is the widely accepted cryptocurrency in the world.
But then the community size of Dogecoin is rapidly increasing too, and it is second only to Bitcoin. But the downside of Dogecoin is that it is only being invested by retail investors and has not got the investments from big companies as of now.
It is not possible for the market cap of Dogecoin to rise unless the big companies of Wall Street are involved.
Also, Dogecoin is not accepted in most of the cases, therefore the use case is minimum. Also, at the same time, almost all the cryptocurrencies in the world accept Bitcoin for purchasing, selling or trading. But very few exchanges allow Dogecoin.
This shows that Dogecoin, although has a rapidly growing user base, has limited exposure which could hinder its future growth and become the next Bitcoin.
Also Read: Will Dogecoin Ever Be Capped?
Dogecoin Edge Over Bitcoin
But there are some aspects in which the meme currency is better than the world’s most popular cryptocurrency. To begin with, the future scope for miners in the case of Bitcoin is limited.
Miners are the backbone of any cryptocurrency blockchain, and they are involved in processing all the transactions on the network. In return to this, the miners get paid transaction fees as well as block rewards in that particular cryptocurrency.
In the case of Bitcoin though, there is a maximum cap of 21 million coins. At the time of writing, around 18.5 million coins are in circulation. Once the upper limit is reached, miners will no longer be able to mine new Bitcoin and their sole income will be from transaction fees.
On the other hand, Dogecoin has a supply of 5 billion coins per year, and this will continue, according to them, till eternity. So, easily, there are more rewards for miners to mine Dogecoin.
The second factor through which Dogecoin has an edge over Bitcoin is the transaction fees and the speed. Bitcoin is higher in terms of transaction fees and takes 10 minutes to complete transactions. On the other hand, Dogecoin has lower fees and only takes 1 minute to complete its transactions.
These two factors could help Dogecoin stay strong in the race to become the next Bitcoin,
Through analysis of these two features, it is estimated that Dogecoin has all it takes to be the mainstream currency. But all that will depend on the change in people’s perception that Dogecoin is a serious mainstream crypto coin and not just a meme coin.
Also, the media as well as big enterprises must invest into Dogecoin and create more trust among retail investors as a result. It is going to be interesting to see the heights Dogecoin will touch in terms of its value and market cap. In fact, many influential investors such as Elon Musk have called Dogecoin, ‘the people’s currency’.