Bitcoin, Ethereum or Dogecoin? – TechRound

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Bitcoin, Ethereum or Dogecoin? – TechRound

—TechRound does not recommend or endorse and financial, gambling or investment practices. All information in articles is purely informational—

For many people, the idea of investing in cryptocurrency is no more than a passing thought. But for those who have considered it a personal finance opportunity, there has been concern about which one to choose as an investment vehicle. To make matters more complicated, the market is currently in a volatile state, with a host of new cryptocurrencies being launched at an unprecedented rate. For individuals seeking to invest in cryptocurrencies, two of the most popular choices are bitcoin and ether.

Both currencies originated as alternatives to government-backed money, so they boast many similar characteristics. But it is important to understand that one will be better for different reasons and depending on the stage of your cryptocurrency investment journey.

Bitcoin vs. Ethereum vs. Dogecoin: A Quick Comparison

Bitcoin, Ethereum, and Dogecoin represent three of the most well-known cryptocurrencies currently. They all enjoy a high market value, but each has its own strengths and drawbacks. Bitcoin was first released in 2009 and has attracted more than 70% of cryptocurrency investors.

It’s easily the most recognisable digital currency as it has gained mainstream media attention over the past eight years. Bitcoin is an open-source payment system that enables anyone to send money to anyone else in the world almost instantly and with very low fees, regardless of where they live. Bitcoin was originally intended to be used as a currency, which would have made it the world’s first decentralised monetary system. However, bitcoin is also used for many other things. Bitcoin Prime is a platform that allows users the opportunity to invest in bitcoin.

Bitcoin is the most popular, but there are others that have gained traction over the years. Ethereum started life in 2015 as a decentralised application platform for smart contracts, which can be used for a variety of purposes. Since then, it has also branched out into other things, including a cryptocurrency and a blockchain-based operating system.

Dogecoin was created in 2013 with the intention of becoming the “funny money” of online transactions. Despite its intentions, it quickly gained momentum and remains an active cryptocurrency. It’s similar to bitcoin in that it’s an open-source platform for the creation of new coins and has been heavily adopted by the community.

Key Differences: Bitcoin, Ethereum and Dogecoin

Bitcoin has a total supply of 21 million coins. It’s the largest cryptocurrency by market cap with a total value of $89 billion.

All cryptocurrencies are operated and exchanged according to specific protocols. Bitcoin transactions are validated by miners and then recorded in a public ledger known as the blockchain through complex mathematical computations. Miners are responsible for adding new transactions to the blockchain and ensuring that older ones are valid when new blocks of transactions are added.

Ethereum is a platform for the development of smart contracts and distributed applications. The value of ethers is determined by the market, but their supply is fixed at 100 million. Ethers are used to pay for transactions and services on the Ethereum platform. It was designed to be more generalised than bitcoin, which means that it’s easier to develop those “smart contracts.”

Dogecoin was created as a “funny money” alternative to bitcoin. The value of Dogecoin is determined by supply and demand in the marketplace, but the number of coins in circulation remains at exactly 100 billion. It was created through a process called mining and uses a Shiba Inu dog as its mascot.

Cryptocurrencies and Investment Potential

Bitcoin has been one of the most popular cryptocurrencies for years due to its appeal to people who don’t want to be tied down by central banking systems or government-issued currencies. Its use and adoption have grown steadily. Even with the volatility we’ve seen recently in the currency’s price, it’s still faring better than other cryptocurrencies that have launched during this overheated market.

Ethereum is similar to bitcoin when it comes to user experience but has been built to be more generalised and also features smart contract capabilities. Ethers are “gas” for operating software applications that run on the Ethereum network.

Dogecoin may be the least popular of the three in terms of market cap and price. However, it has a loyal community that’s kept it relevant for years. It was created as a fun cryptocurrency but also has real-world demand and value. This is why it hasn’t been wiped out by other cryptocurrencies despite its low position on the totem pole. Even with all of these options, there are thousands more cryptocurrencies to choose from at this point in time.

A cryptocurrency investment requires a lot of research and planning to make sure that it’s a good fit for you. You should choose the one that has the right purpose and generation scheme, as well as market demand. Traditionally, bitcoin is seen as the better choice. However, if you’re looking to invest in a cryptocurrency with a long-term vision and a strong community, you should consider investing in ether or Dogecoin.

—TechRound does not recommend or endorse and financial, gambling or investment practices. All information in articles is purely informational—

Credit: Bitcoin, Ethereum or Dogecoin? – TechRound