Bitcoin vs. Dogecoin: Which Is a Safer Investment?
Memecoin or the OG cryptocurrency? Many investors are wondering if Bitcoin or Dogecoin is a safer investment in the current bull run. Learn more in our guide.
Bitcoin is the largest cryptocurrency by market cap and remains the leading investment for the majority of investors.
Dogecoin is a memecoin that has seen large gains for some investors in bull runs but remains a more speculative investment.
A diversified portfolio is usually the best option for the majority of investors.
Which should I invest in: Bitcoin or Dogecoin?
Bitcoin is generally considered a better long-term investment, while Dogecoin is a popular option for those looking to make short-term speculative trades. Compare the two at a glance.
| Feature | Bitcoin | Dogecoin |
|---|---|---|
| Launched | 2009 | 2013 |
| Creator | Satoshi Nakamoto | Billy Markus & Jackson Palmer |
| Purpose | Store of value, peer-to-peer digital transactions | Meme-based, community-focused, short-term trading |
| Supply | Capped at 21 million | Unlimited |
| Consensus mechanism | Proof of Work | Proof of Work |
| Utility | Inflation hedge, secure payments | Short-term speculation, community-driven |
| Security | High hash rate, highly secure | Lower hash rate, less secure than Bitcoin |
Let’s take a look at the two cryptocurrencies in more depth.
What is Bitcoin?
Bitcoin, introduced in 2009 by the pseudonymous Satoshi Nakamoto, is the first and most well-known cryptocurrency. Designed to enable decentralized, peer-to-peer transactions, Bitcoin operates without traditional financial intermediaries, providing a transparent and secure means to exchange value. Its capped supply of 21 million coins makes it a popular hedge against inflation and a reliable store of value. Bitcoin’s prominence continues to grow, attracting interest from institutional investors and financial firms, as evidenced by Bitcoin ETFs gaining approval in the United States.
Read next: Bitcoin Mining Guide
What is Dogecoin?
Originally launched as a parody of the cryptocurrency space in 2013, Dogecoin was created by software engineers Billy Markus and Jackson Palmer. The coin's appeal lay in its humorous roots, featuring the Shiba Inu dog from a popular internet meme. Despite its lighthearted origins, Dogecoin gained mass appeal, largely thanks to high-profile endorsements, particularly from Tesla CEO Elon Musk. Dogecoin has become one of the top ‘memecoins,’ but its supply structure—allowing 5 billion new units annually—has led to criticism that it lacks serious long-term value for investors.
Read next: DOGE vs SHIB vs FLOKI
Price history: Bitcoin vs. Dogecoin
Both cryptocurrencies have experienced volatility, but Bitcoin's trajectory has shown substantial long-term growth, rewarding patient investors. Dogecoin peaked in 2021, with subsequent price spikes failing to achieve previous highs. While Bitcoin’s history showcases stability and value appreciation, Dogecoin’s dramatic movements reflect its popularity among short-term traders.
Read next: What determines the price of crypto?
Use and utility: Bitcoin vs. Dogecoin
Bitcoin: Serves as ‘digital gold,’ designed for peer-to-peer, decentralized payments and long-term value storage.
Dogecoin: Built around community engagement and fun, driven by online culture rather than financial fundamentals.
Bitcoin’s evolution has seen it recognized as a viable alternative to fiat currency, particularly as a hedge against inflation. Institutional support has further solidified its reputation. Dogecoin, meanwhile, remains largely speculative, with critics pointing out its limited utility beyond being a fun, meme-based project.
Supply and inflation: Bitcoin vs. Dogecoin
Bitcoin’s fixed supply of 21 million units prevents inflation and enhances scarcity-driven value. By contrast, Dogecoin’s unlimited supply, with 5 billion new coins minted annually, makes it inflationary and subject to devaluation concerns over time.
Security: Bitcoin vs. Dogecoin
Both cryptocurrencies use a Proof of Work (PoW) consensus mechanism. However, Bitcoin’s extensive network of miners makes it far more resistant to potential attacks compared to Dogecoin’s smaller network.
Is Bitcoin or Dogecoin a safer investment?
Whether you invest in Bitcoin or Dogecoin depends on your investment goals. If you’re looking for longer-term investments, Bitcoin is likely the better choice. If you’re looking for short-term speculative investments, Dogecoin is likely the better choice. Overall, a diversified portfolio that includes Bitcoin, Dogecoin, and a number of other investments, is usually the best option for the majority of investors.
Read next: How to Buy Bitcoin on eToro
How to buy Bitcoin and Dogecoin
Both cryptocurrencies can be purchased on popular exchanges like Coinbase, Kraken, and Binance. To get started:
Create an account: Sign up for a crypto exchange if you’re new. Identity verification typically takes 1-2 days.
Add a payment method: Link your bank account, credit card, or make a transfer.
Select and buy: Choose the cryptocurrency you want to buy and confirm your purchase, checking the applicable fees.
Read next: How to Buy Dogecoin on eToro
Which is right for you?
Bitcoin and Dogecoin serve different purposes and appeal to different investor profiles. Bitcoin is a long-term store of value with institutional backing. While Dogecoin is for those looking for short-term trading and community-driven fun.
Your choice should reflect your investment goals, risk tolerance, and how you intend to use the cryptocurrency.
Regardless of your investment, if you have gains from Bitcoin or Dogecoin, you’ll need to pay any tax due. Koinly can help calculate gains and losses for Bitcoin and Dogecoin easily and automatically. Sign up free today.
FAQs
Is Dogecoin a good investment?
Dogecoin can be appealing to those looking for speculative, short-term gains, but it comes with high risk and volatility. Unlike Bitcoin, which is widely considered a long-term store of value, Dogecoin lacks strong fundamentals such as scarcity and extensive institutional adoption. Investors should be cautious and aware of its inflationary supply and community-driven value.
Is Dogecoin a security?
Dogecoin has not been classified as a security by regulatory bodies like the SEC. Unlike traditional securities, it was created without an initial coin offering (ICO) or centralized entity profiting from its issuance. However, the regulatory landscape for cryptocurrencies is evolving, so it’s important to stay updated on any changes.
Which is better Dogecoin or Bitcoin?
Bitcoin is generally considered a more reliable investment due to its established utility as 'digital gold' and its widespread acceptance. In contrast, Dogecoin is often viewed as a short-term, speculative asset.
Is Dogecoin a bad investment?
Dogecoin has an inflationary supply, meaning new coins are continuously added, which can dilute value over time. Additionally, it tends to be more volatile and lacks the security and institutional support that Bitcoin enjoys. Despite this, many investors have made substantial gains from the memecoin.
Will Dogecoin ever be the same price as Bitcoin?
It's unlikely that Dogecoin will attain the same value as Bitcoin, given its lower market demand and higher inflation rate.
What are the similarities between Bitcoin and Dogecoin?
Both Bitcoin and Dogecoin are cryptocurrencies that utilize the Proof of Work (PoW) consensus mechanism and operate on decentralized blockchain networks.
