Saturday 06 August 2022 ▪ 2:00 pm ▪
min read – with
” Doge has memes and dogs Says the man who just sold his bitcoin holdings and continues to give his unwavering support to Dogecoin. Yes, that’s 100% Elon Musk. And we can’t do anything against him, even if he says that DOGE has assets that his elder BTC doesn’t. Much higher transaction capacity, among others.
Transaction capacity: Dogecoin 30 and Bitcoin 7 per second
In a recent interview, Elon Musk made an unflattering statement about bitcoin.
” I mainly support Doge, because Doge has memes and dogs. Dogecoin’s current total transaction capacity is much higher than that of Bitcoin. »
And he is not wrong in saying this: the Dogecoin blockchain can indeed support up to 33 transactions per second. For Bitcoin, it is limited to 7 transactions. Moreover, this is one of the issues raised by the Cleveland Fed in a recent investigation into Bitcoin and the Lightning Network.
Certainly, the use of the consensus algorithm ofAuxiliary Proof of Work is there something. Add to this the process of amalgamated mining which allows free mining at no additional cost.
But you don’t know that the DOGE has always attracted Elon Musk. His first expressions of support date back to 2021, when the American centurion started tweeting messages to promote Dogecoin.
Enthusiasts were excited after his promise to send this cryptocurrency to the moon.
The DogeFather Musk does not miss opportunities to draw attention to the DOGE, on social networks and during his appearances on television programs.
Recently, his company Tesla decided to get rid of a large part of its bitcoin holdings. Let’s say this electric car specialist previously had 42,000 BTC. Now he should not have more than 10,500 coins in his encrypted wallet.
However, no DOGE was sold within the company. And why would it be? Didn’t he announce that Tesla and SpaceX will accept Dogecoin as payment?
Duel Bitcoin VS Doge, who won?
The difference between Bitcoin and Doge is only in the number of transactions per second (TPS). It can also be expressed in:
- the level of volatility: the DOGE is much less volatile than the BTC, so there is increased investor interest in it memecoin in day-to-day transactions;
- supply capitalization: while bitcoin has a total supply capped at 21 million, Dogecoin has unlimited capitalization;
- scarcity: this cap on the maximum number of bitcoins increases their value gradually. For Dogecoin, scarcity will never be found, which is what its founders Palmer and Markus intended.
- the hashing standard: for Bitcoin, it is the SHA-256 of the National Security Agency (NSA) and for Dogecoin, the Scrypt Litecoin hashing standard.
In short, the points of difference don’t stop at the TPS. And if you want to know which is better between the two cryptocurrencies, know that there is no definitive answer. If you take returns as an example, Dogecoin generates a lot of returns for its investors. Note, however, that this memecoin it seems more suitable for short-term investment. A Bitcoin rival, if we can call it that, adapted anyway to long-term investment. That’s what the hodlers are doing right now bear run.
Sources: Economic Observatory; Cointelegraph; CoinDCX Blog; The Basic Crypto; Technology Cruelty
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