Bitcoin, Ethereum, and Dogecoin are popular cryptocurrencies that are getting a lot of attention lately. But, as they battle for crypto dominance, which is the best?
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What is the difference between Bitcoin, Ethereum and Dogecoin?
Before an investor decides which crypto may be better than others, they should explore where each crypto comes from and the value of each.
What is Bitcoin and how does it work?
Bitcoin (BTC) pioneered the cryptocurrency movement. It was first an idea published by the alias “Satoshi Nakamoto” and a team of developers in 2008. Bitcoin’s proposal stemmed from a new way to transfer money through a decentralized network. In short, Bitcoin allows people to send and receive money to each other but without the intervention of a third party, such as a bank.
Fast forward to 2022 – bitcoin has become a dominant asset in the crypto markets.
According to Coinbase, bitcoin is multifunctional and can act as:
- An investment vehicle
- A store of value
- A new way to transfer money
- A new technology to explore
The concept of “store of value” comes from the capped issue of bitcoin, which means that there is only a supply of 21 million bitcoins. The scarcity of bitcoin as a digital asset lends credence to the theory. For this reason, bitcoin is often referred to as “digital gold”.
What is Ethereum and how does it work?
Ethereum (ETH) is a base crypto for blockchain infrastructure, making it a layer 1 blockchain solution. It has the largest developed community of any crypto asset and operates a decentralized network.
There have been nearly 3,000 apps built on Ethereum – for comparison, the second highest is just over 300 – and its rapidly growing network has helped it retain the title of “second highest”. largest cryptocurrency” by market capitalization over the past few years.
What is Dogecoin and how does it work?
Dogecoin (DOGE) is labeled as a peer-to-peer digital currency, just like bitcoin. Dogecoin is valuable because it has a purpose, just like money has a purpose.
Although the usefulness of the token may be questionable, those who hold the cryptocurrency can actually spend it like cash at several physical or online locations, such as Tesla, GameStop, AMC Theaters, and Twitch. Consumers can also use dogecoin on sites like Bitrefill to purchase gift certificates on other sites, like Amazon or Google Play.
Is Bitcoin better than Ethereum?
A significant difference between Bitcoin and Ethereum is that Ethereum is programmable.
While investors and consumers view bitcoin as a payment network, Ethereum is a base layer on which developers can build decentralized applications. Use cases spread across finance, gaming, and social media.
Another point of difference is that bitcoin runs on proof-of-work protocol, while Ethereum is moving to proof-of-stake soon. Both are known as “consensus mechanisms,” which are algorithms that allow networks to cooperate and stay secure.
PoW secures networks by using “mining” – computing power to solve complex mathematical equations. However, PoS allows those who hold the cryptocurrency to “stake” their crypto to secure the network, and in exchange, they receive a reward.
Of the two, PoW is the more secure option than PoS. So while investors may view bitcoin as more secure, they may find that Ethereum has more potential use cases as blockchain technologies develop.
Which is better: Bitcoin or Dogecoin?
Since bitcoin’s supply is capped, investors likely find it to be a better store of value than dogecoin, which can technically be issued forever.
Also, although dogecoin has a faster mode of payment – 33 transactions per second compared to seven for bitcoin – bitcoin’s usefulness is far ahead. The introduction of the Bitcoin Lightning Network has made transactions inexpensive, fast, and scalable.
What is better: Ethereum or Dogecoin?
Ethereum’s network offers many more use cases than dogecoin. Despite this, dogecoin is much more efficient in transacting. It costs around $0.06 to transact dogecoin on average, according to Messari. ETH transactions, in comparison, have to pay gas fees. Although it can be a fraction of a penny, it can also be over $100.00, depending on demand.
Ethereum intends to solve this problem through “sharding”, a development that will make distribution and secure transactions cheaper.
Which has the greatest potential: Bitcoin, Ethereum or Dogecoin?
Wondering which cryptocurrency is about to explode? Here are the price predictions for each crypto over the next few years.
Bitcoin, Ethereum and Dogecoin Price Prediction 2022
Coin Price Forecast estimates the following values for each crypto at the end of 2022.
|$26,525 — 41% increase||$1,840 — 20% increase||$0.0773 – 31% upside|
Bitcoin, Ethereum and Dogecoin Price Prediction 2025
Coin Price Forecast estimates the following values for each crypto at the end of 2025.
|$47,635 — 153% increase||$3,081 — 100% increase||$0.0999 – 67% upside|
Bitcoin, Ethereum and Dogecoin Price Prediction 2030
Coin Price Forecast estimates the following values for each crypto at the end of 2030.
|$87,588 — 365% increase||$5,229 — 240% increase||$0.1898 – 223% upside|
From a utility and risk-reward perspective, bitcoin and ethereum appear to be better long-term choices than dogecoin. Moreover, the long-term growth trends for both suggest that they will be the future dominant digital assets in the crypto markets.
Information is accurate as of September 13, 2022 and is subject to change.
This article originally appeared on GOBankingRates.com: Bitcoin vs. Ethereum vs. Dogecoin: Full Comparison in 2022
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.