BigONE View: Four Reasons To Choose To Buy Bitcoin Instead of Dogecoin
Although Dogecoin is a fantastic having outperformed Bitcoin since the beginning of the year, BigONE believes that this does not mean you should buy it right away, but instead do some research.
According to CoinMarketCap, Dogecoin began as a meme token worth less than a cent and has since grown to a total market value of more than $49 billion, placing it among the top five major cryptocurrencies in terms of market value. Many people believe it is time to begin taking it seriously. While many mainstream cryptocurrency exchanges, such as BigONE, are currently listing Dogecoin, its reputation and popularity raise questions about its ability to function as a digital currency.
Since the beginning of this year, the price of Dogecoin has increased by more than 6,000%, while the price of Bitcoin has increased by 37%, which is also a significant increase. However, according to survey data, when choosing between Dogecoin and Bitcoin, many people still prefer Bitcoin. Why? BigONE will explore the possible reasons in this article.
Bitcoin is more than just a payment system
Let’s start with the claim that Dogecoin can be used as a cryptocurrency. It is more likely to work better in the sense that it has a faster transaction speed, it’s more environmentally friendly, and be less expensive than Bitcoin. Dogecoin is one of many alternative currencies that improve on Bitcoin’s ability to pay. The issue is that all of these are insecure when it comes to the cryptocurrency’s value. Would you accept payment for a meal and then see it possibly halve in value within a few days if you owned a restaurant business? The answer is obviously a ‘no’: as such price swings would devastate your business cash flow. Stablecoins are a good solution to the volatility problem. Because these cryptocurrencies are linked to stable assets (such as US dollars or gold), their prices will remain stable.
Government digital currency, such as the digital dollar, is another potential player in the field of digital payment. The Federal Reserve recently stated that it is considering creating its own digital currency, while China is already experimenting with a digital renminbi. Because these digital currencies are both stable and supported by the government, some people refer to them as a potential paradigm shift, as their emergence is likely to wipe out all existing alternative currencies.
We don’t know how this will play out, but one thing is certain: if Dogecoin is to become a digital currency, it will face competition from many directions. Bitcoin, on the other hand, is in a different league. Some regard it as a means of storing digital value, like gold, while others regard it as a solid and secure foundation upon which other cryptocurrencies will operate.
There is a huge team behind Bitcoin
The Bitcoin Foundation and other organizations fund a large group of developers who work to keep Bitcoin error-free and up to date. Although Bitcoin is slow in terms of transaction speed, developers are thinking about layering new technologies on top of its platform. Furthermore, there are plans to update the cryptocurrency to make transactions easier and less expensive.
Dogecoin recently announced that its first major upgrade in years will be released soon. It has four part-time developers who have stated that ‘Doge 1.21’ is not far away. This is great news, but it is a drop in the bucket when compared to Bitcoin’s development team. Because Dogecoin does not have a full-time developer, what happens if the platform is hacked or there is a serious unexpected technical issue?
One person owns nearly one-third of Dogecoin
According to the Wall Street Journal, one person owns 28% of all Dogecoins currently available. In addition, almost 70% of the tokens are stored in only 100 wallets.
Bitcoin now has its own ‘whales’, who own a significant amount of the cryptocurrency and as a result can have a significant impact on the currency’s price. However, because Bitcoin is the world’s most popular cryptocurrency, the influence of these whales has been somewhat diluted. A Bitcoin whale, according to on-chain market intelligence company Glassnode, is someone who owns more than 1,000 Bitcoins. It is estimated that there are approximately 2,200 whale accounts that together control more than 30% of the world’s Bitcoin supply. In comparison, one person controls 28% of Dogecoin which gives them a great deal of control over the price, compared to whale Bitcoin cryptocurrency holders.
Bitcoin is a better long-term choice
BigONE believes in Bitcoin’s long-term prospects. We advise investors to avoid seeking short-term gains and to hold Bitcoin for as long as possible, as we believe it will perform well in the future.
Is Dogecoin an excellent long-term investment? In our view, it may continue to surprise us all, but this cryptocurrency was created as a joke with no fundamental purpose. Its market value has now surpassed that of several global corporations. Dogecoin, no matter how popular it is on the Internet, cannot conceal it has no business plan or serious purpose.
After all, all cryptocurrencies are high-risk investments. We can’t say when the risk will appear, but Dogecoin appears to be even riskier than most cryptocurrencies. Although right now its performance appears to be excellent, and BigONE also hopes that the Dogecoin community will continue to thrive, some investors still believe that investing in Dogecoin is a significant risk.
BigONE is a global cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It was founded in 2017 and registered in the Netherlands. The group operates in Russia, Brazil, Vietnam, Seychelles, Singapore, Japan, and Indonesia, providing marketing, investment, and blockchain technology research & development.