Many so-called crypto experts say Dogecoin was started as a joke and should be treated as such. However, we strongly disagree. Genesis does not define one’s destiny.
Dogecoin is better than Bitcoin because it has lower fees, higher transaction speed, is not concentrated by the top 2% holders, price is stable, mining is profitable, disincentivizes hoarding, Chinese miners don’t control the network, and have a mechanism to negate the effect of lost coins.
Dogecoin transaction fees are lower:
One of the most controversial things about Bitcoin is its transfer fee. Over the years, this fee is steadily increasing. On average, this fee is more than $15, and during busy hours it can rise to $60.
On the other hand, Dogecoin is far cheaper to transfer and has a fee of less than $1.
You can track the latest transaction fees on the following page.
- Bitcoin: https://ycharts.com/indicators/bitcoin_average_transaction_fee
- Dogecoin: https://blockchair.com/dogecoin/charts/average-transaction-fee-usd
Dogecoin transactions are faster:
Bitcoin has a block time of 10 minutes, whereas Dogecoin’s block time is 1 minute. Theoretically, Dogecoin can handle 10x more transactions in a given time during maximum network load. However, in a real-world scenario, we found that sometimes Bitcoin can take several hours for transaction confirmation.
Dogecoin disincentivizes hoarding:
Cryptos are nothing but a digital currency. It was created to replace fiat currencies. One of the core objectives was to create a decentralized monetary system free of institutional control or manipulation. Cryptos were not supposed to become collectible items.
Over the years, however, Bitcoin became a collectible item. It’s become an NFT (non fungible token). Because of the 21 million limited supply, institutions, companies, and retail investors buy and hoard Bitcoin to speculate that its price will continue to go up. So, Bitcoin has a limited supply, and people are hoarding it. Thus, the total coins in circulation are decreasing. Bitcoin now considered an investment vehicle, not a currency.
Therefore, people removed the “currency” part from Bitcoin, and it became a collector’s item. Bitcoin lost its sole purpose of existence.
On the contrary, Dogecoin is intentionally designed as an inflationary coin so that people don’t hoard this coin. As a result, Doge encourages spending, thus increasing coin supply in the network. Therefore, Dogecoin has the characteristics to become a real digital currency, whereas Bitcoin doesn’t.
Bitcoin mining is unprofitable:
Dogecoin mining is profitable, whereas Bitcoin is barely profitable. After several years, Bitcoin would become unprofitable to mine.
When the total number of mined Bitcoin reaches 21 million, the network will stop giving away miners rewards. If I’m a miner, why would I continue to support Bitcoin if I’m not getting paid proportionally? I have two options at that time:
- Ask for increased Bitcoin transaction fees, Or,
- Leave Bitcoin mining and go somewhere else.
We already see the effect of point 1 as higher transaction fees plaguing the Bitcoin network. Think of the long term, such as 2030. Soon Bitcoin would reach an inflection point. Bitcoin holders want the price to go up but don’t want to pay anything to the miners.
In contrast, due to the fixed 5 billion/year Dogecoin supply into the network, Doge will always be profitable for miners. Doge was designed for everyone.
Dogecoin is stable:
If you watch the price movement of Apple (AAPL) and Tesla (TSLA), you would see that Apple is more stable than Tesla. There are several reasons, but the primary reason is the number of outstanding shares. Apple has more than 16 billion shares outstanding, whereas Tesla has around 1 billion outstanding shares.
Similarly, due to 130 billion outstanding Dogecoin and 5 billion more coins each year, Doge is a more stable cryptocurrency than Bitcoin.
A cryptocurrency would never become mainstream unless it is stable. Over the last eight years, Dogecoin showed that it is a far more stable currency than Bitcoin.
Dogecoin negates lost coin effect:
It’s estimated that around 20% of Bitcoin is lost forever due to forgotten passwords, lost phones, or corrupted computers. Now, what would happen in the next 15 to 20 years? We would lose more Bitcoins. There’s no way to replace these lost coins. Deflation, hoarding, and lost coins make Bitcoin the least practical crypto for day-to-day use.
In contrast, Dogecoin adds 5 billion coins per year to the network. Thus, it negates any effects of lost Doge. Hence, it is an excellent crypto for the real-world use case.
We always love to point out that the top 1% controls 40% of the USA’s wealth. In the Bitcoin spectrum, however, it’s more severe and scary. The top 2% holds more than 95% Bitcoin (Bloomberg).
On the other hand, Dogecoin is not as concentrated as Bitcoin. It’s why Doge is more stable than Bitcoin.
Bitcoin mining is concentrated in China:
A 2019 CoinShares research has shown that China controls 65% of Bitcoin mining power. It’s due to the available cheap hardware and cheap electricity. [source] It doesn’t feel right.
Dogecoin community is stronger:
Bitcoin was started in 2009. It went through several hard forks due to disagreements between Bitcoin developers, miners, and communities. Bitcoin Cash, Bitcoin Gold, Bitcoin SV (Satoshi’s Vision) are all hard forks of Bitcoin. On the other hand, Dogecoin never went through any hard fork since its inception in 2013.
Bitcoin’s core community is tense and revolves around money. On the other hand, the Dogecoin community is approachable and has a light-hearted approach to cryptos.
Because of all the reasons mentioned above — lower fees, higher transaction speed, is not concentrated by the top 2% holders, price is stable, mining is profitable, disincentivizes hoarding, Chinese miners don’t control the network — Dogecoin is better than Bitcoin.