cryptocurrencies: Bitcoin, Dogecoin or something else?

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Time is everything in the world of investing. Whether it is the timing of the market or the time spent in the market, it plays an important role. To find out if it’s the right time to invest in Bitcoin and Dogecoin, let’s analyze the difference between the two cryptocurrencies.

Circulating Supply Bitcoin was created in the aftermath of the 2008 economic recession by an anonymous user named Satoshi Nakamoto. It is rare by design, philosophy and nature. We can only have 21 million Bitcoin, neither more nor less than that. Today there are already 18.7 million Bitcoins in circulation and by 2140 all 21 million Bitcoins are expected to be mined.

On the other hand, 10,000 new Dogecoins are created with each block at the rate of approximately one block per minute. That’s almost 15 million Dogecoin created every day, making it an endless supply with over 130.54 billion already in circulation.

Basic Philosophy When Satoshi Nakamoto created Bitcoin, he / she / they knew exactly what they were creating. The first peer-to-peer electronic money system was created as an alternative to an inefficient, trust-based monetary system. Bitcoin, by all means, has met the criteria for a monetary system. It is a store of value, a medium of exchange and a transferable asset. The central idea is that money should be accessible all over the world, that anyone can buy, sell, store anywhere in the world.

On the other hand, Dogecoin was created by software engineer Billy Markus as a joke. It just took about three hours to do it, from the available Bitcoin source code.

Community While Bitcoin and Dogecoin have a large community, the essence of community in Bitcoin is very different from that of Dogecoin. Bitcoin has been around for over 12 years and it has stood the test of time. Most Bitcoin owners are knowledgeable about the technology and the philosophy behind the Bitcoin concept. Most of the time, they are the ones who challenge the status quo and champion the technology that offers distributed decentralized and open source monetary systems.

As the Dogecoin community grows rapidly, this growth is attributed to the hype and trends. People who don’t understand the market want to take the doge to $ 10, $ 100 and so on, which is realistically impossible. Lifestyle celebrities with no basic understanding of technology ask fans to buy doge and influence them, taking the market on a wild ride.

So, is it a good time to invest in Bitcoin and Dogecoin? It’s up to you !

But for anyone who has seen Bitcoin’s success over the past decade, it’s based on technology that can change our lives, not just the money system. Dogecoin is a bitcoin baby product. And most of the coins that came to market after Bitcoin saw the same chart as Bitcoin’s.

Dogecoin, if it is to be popular and rule the crypto world, has to offer something unique that none of the coins have ever offered to people. It’s always best to stop wondering and take action. There is no right answer.

More questions bring more confusion. It is always advisable to take small steps, act early and invest what you can afford to lose.

Unlike gold, stocks, or any other investment asset, Bitcoin is an accumulation game. The price of assets only increases on average and this can be proven by a simple theory of supply and demand. Bitcoin’s circulating supply is shrinking and there are already over 100 million Bitcoin owners. With its great fundamental philosophy intact, there is more and more demand which leads to higher prices. The recent virtual Bitcoin event The B-Word witnessed a discussion between Jack Dorsey, Cathi Wood and Elon Musk. The whole conversation was based on why Bitcoin is conquering the world just like the internet did three decades ago and Elon Musk, CEO of Tesla, SpaceX, then revealed that he, and Tesla, and SpaceX own Bitcoin. . The key message here is that the big corporations and the big whales are accumulating more, leaving retail investors behind. So if you believe in this technology, now is the right time to own a Bitcoin investment.

Conclusion While the future prices of any cryptocurrency are not predetermined, any savvy investor should know where they are putting their money. Whether it’s stocks, real estate, business, crypto, or any investment, it’s crucial to understand the basic premise and philosophy. No one can be sure whether Dogecoin or Bitcoin can go up or down tomorrow. What we do know is about the technology, why and how these parts were created. Having another cryptocurrency with an infinite supply will turn into another fiat currency just waiting for inflation. Bitcoin may not be the best and far from perfect, but with its basic premise intact, having a large community is surely a better bet to take.

(The author, Sathvik Vishwanath is the CEO and Co-Founder, Unocoin Technologies Pvt Ltd. The opinions are his own.)

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