Differences Between Dogecoin and Bitcoin: What You Need to Know

Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved or otherwise endorsed by our partners. In the ever-evolving world of cryptocurrencies, Bitcoin and Dogecoin have emerged as two of the most talked-about digital assets. Understanding these differences is crucial for anyone interested in the crypto space, whether you’re an investor, a tech enthusiast, or just curious about digital currencies. This article is not an endorsement of any particular cryptocurrency, broker or exchange nor does it constitute a recommendation of cryptocurrency or CFDs as an investment class.

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What is Dogecoin?

Later in the month, Musk shared that he’s working with the Dogecoin developers to make improvements and create efficiencies with the coin and invited individuals to share their feedback with him and the developers. In times of price appreciation, the collective buzzes with elation. This isn’t the first time Musk, who styles himself as “the Dogefather,” has fueled interest in Dogecoin. University of Southern California provides funding as a member of The Conversation US.

In other words, Dogecoin’s memetic resonance has ascended from pop culture to politics, helping it capture a bigger slice of the public’s mindshare. During price dips, community members mutually reinforce their comrades’ – and their own – beliefs that this is just a bump in the road and that their collective efforts will eventually lead to a handsome payoff. Even in the coldest of crypto winters, this ritualistic behavior helps these speculative communities endure.

What is Dogecoin? How a joke became hotter than bitcoin

Perhaps inevitably, Dogecoin’s success has inspired imitators. Other meme coins have sprung up, including Pepe (PEPE), Shiba Inu Coin (SHIB), and Bonk (BONK), and DOGE has ultimately led to millions of spiritual successors over time. crypto market making and liquidity providers The upside of Dogecoin’s never-ending supply of tokens is that the price stays relatively stable.

Though it was originally created as a joke, the digital currency has gained popularity in 2021, experiencing remarkable critical code studies wikipedia price increases. Dogecoin picked up steam once again in 2020; partly thanks to the emergence of a new social media platform that traffics in memes. Since the token supply is high and the price is low, it’s not attractive to investors looking to hold onto their currency. The result is a highly liquid, free-flowing peer-to-peer digital currency. Dogecoin, on the other hand, was created in 2013 by software engineers Billy Markus and Jackson Palmer. Initially conceived as a joke, Dogecoin was inspired by the popular “Doge” meme featuring a Shiba Inu dog.

If your financial plans require you to sleep easily at night, most cryptocurrencies are probably not for you. Cryptocurrencies are inherently volatile and that has authorities worried. Musk will serve as the head of D.O.G.E alongside Vivek Ramaswamy. Elon Musk has rekindled his influence over the dog-faced meme token following Trump’s election win. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. Jackson Palmer left his leadership role at Dogecoin in April 2015.

• In 2022, one of them filed a class action lawsuit against Musk for market manipulation and insider trading, though the case was dismissed in August 2024.
• Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues.
• Though it was originally created as a joke, the digital currency has gained popularity in 2021, experiencing remarkable price increases.
• But historically, Dogecoin has seen some extreme price surges.
• This means that miners are forced to work harder and longer over time to earn new Bitcoin, and to a degree it helps guarantee Bitcoin’s ability to hold and grow its value over time.

Despite its playful origin story, Dogecoin is just as volatile as every other type of cryptocurrency. It reached an all-time high of $US.73 cents in May 2021, before plummeting 78% lower a year later. By May, one Dogecoin was trading for around $.US15 US cents, but its fortunes received a boost following the US election and, as of late November, is now trading at just under $US.40. In the unconventional world of cryptocurrency investments, where prices fluctuate wildly and fortunes are made and lost, one coin manages to attract more attention than most. Ark predicts companies — and even governments — could choose to hold Bitcoin in their reserves alongside traditional cash, a potential hedge against negative economic events like inflation.

It has a few niche markets, including using dogecoin to tip online artists. Jackson Palmer, an Adobe employee, couldn’t believe the huge number of altcoins that were popping up in 2013. As a joke, he sent out a tweet saying he was investing in Dogecoin—a fake coin based on a popular meme featuring a Shiba Inu dog. Like other cryptocurrencies, such as Bitcoin, Dogecoin can act as a way to transfer money between people, either as a payment for goods or services, or simply to send cash.

Software engineers Billy Marcus and Jackson Palmer created Dogecoin in late 2013. Palmer branded the cryptocurrency’s logo using a meme popular at the time that featured the deliberately misspelled word “doge” to describe a Shiba Inu dog. Dogecoin (DOGE) is a peer-to-peer, open-source cryptocurrency established in 2013. Originally created as somewhat of a joke about cryptocurrency, the token became fairly popular with cryptocurrency fans. The community and developer humor included in the project adds to its appeal and is probably what has made it last longer than many other cryptocurrencies. As the cryptocurrency market continues to evolve, staying informed is more important than ever.