Bitcoin, ethereum, and dogecoin are popular cryptocurrencies that have received a lot of attention recently. But, as they fight for cryptocurrency dominance, which one is best?
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What is the difference between Bitcoin, Ethereum and Dogecoin?
Before any investor decides which cryptocurrency might be better than others, they should explore where each cryptocurrency comes from and the value of each.
What is Bitcoin and how does it work?
Bitcoin (BTC) was the pioneer of the cryptocurrency movement. It was initially an idea published by the pseudonym “Satoshi Nakamoto” and a team of developers in 2008. The Bitcoin proposal was born from a new way of transferring money through a decentralized network. In short, Bitcoin allows people to send and receive money to each other but without the involvement of third parties, such as a bank.
Fast forward to 2022: Bitcoin has become a dominant asset in the cryptocurrency 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 limited issuance of bitcoins, 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 labeled as “digital gold”.
What is Ethereum and how does it work?
Ethereum (ETH) is a fundamental cryptocurrency for the blockchain infrastructure, making it a Level 1 blockchain solution. It has the largest developed community of any crypto asset and operates a decentralized network.
There have been nearly 3,000 Ethereum-based applications – by contrast, the highest has only just over 300 – and its fast-growing network has seen it retain the title of “second cryptocurrency” by market capitalization in recent 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.
While the token’s usefulness may be questionable, those who hold the cryptocurrency can actually spend it as money in various physical or online locations, such as Tesla, GameStop, AMC Theaters, and Twitch. Consumers can also use dogecoin on sites like Bitrefill to purchase gift cards 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 fundamental layer on which developers can build decentralized applications. Common use cases in finance, games and social networks.
Another point of difference is that bitcoin operates on the proof-of-work protocol, while Ethereum will soon switch to proof-of-stake. Both are known as “consensus mechanisms,” which are algorithms that allow networks to cooperate and remain secure.
PoW protects networks by using “mining”, a computing power for solving complex mathematical equations. However, PoS allows those who hold the cryptocurrency to “stake out” their cryptocurrency to protect the network and, in return, receive a reward.
Of the two, PoW is the safer option than PoS. So while investors may consider bitcoin to be safer, they may find that Ethereum has more potential use cases with the development of blockchain technologies.
Which is better: Bitcoin or Dogecoin?
Since bitcoin supply is limited, investors likely find it a better store of value than dogecoin, which technically can be issued forever.
Furthermore, despite dogecoin having a faster payment method – 33 transactions per second against bitcoin’s seven – the usefulness of bitcoin is far ahead. The introduction of the Bitcoin Lightning Network made transactions low cost, fast and scalable.
What’s better: Ethereum or Dogecoin?
The Ethereum network provides far more use cases than dogecoin. Despite this, dogecoin is much more efficient for transactions. The dogecoin transaction costs around $ 0.06 on average, according to Messari. ETH transactions, in comparison, have to pay a fee for gas. While it can be a fraction of a cent, it can also be over $ 100.00, depending on the demand.
Ethereum intends to address this problem through “sharding”, a development that will make secure distribution and transactions cheaper.
What is the most positive potential: Bitcoin, Ethereum or Dogecoin?
Wondering which cryptocurrency is bound to explode? Here are the price predictions for each cryptocurrency in the coming years.
Bitcoin, Ethereum and Dogecoin Price Prediction 2022
Coin Price Forecast estimates the following values for each crypto at the end of the year in 2022.
|$ 26,525 – 41% upside||$ 1,840 – 20% upside||$ 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 the year in 2025.
|$ 47,635 – 153% rise.||$ 3.081: 100% rise.||$ 0.0999: 67% rise.|
Bitcoin, Ethereum and Dogecoin Price Prediction 2030
Coin Price Forecast estimates the following values for each crypto at the end of the year in 2030.
|$ 87,588 – 365% upside||$ 5,229: 240% rise.||$ 0.1898 – 223% rise.|
From a utility and risk-return perspective, both bitcoin and ethereum appear to be better long-term choices than dogecoin. Furthermore, the long-term growth trends for both suggest that they will be the dominant future digital assets in the cryptocurrency 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.