Bitcoin (CRYPTO: BTC) and Dogecoin (CRYPTO: DOGE) have both been trendy investments over the past 12 months, soaring 650 percent and 18,600 percent, respectively, at recent rates. While being based on newer systems, these cryptocurrencies have very different origin stories.
Bitcoin was created in 2009 by Satoshi Nakamoto. Then a white paper was published detailing how Bitcoin could be used to build a new financial system and reduce the transaction costs by eliminating the need for financial institutions.
Dogecoin was created as a joke. In 2013, Adobe employee Jackson Palmer tweeted: “Investing in Dogecoin, pretty sure it’s the next big thing.” At the time, Dogecoin didn’t exist and his comment poked fun at the growing hype surrounding Bitcoin.
Dogecoin is soaring today, reaching new all-time highs both in dollar terms and also relative to Bitcoin.
Dogecoin, on the other hand, was created as a joke. “Investing in Dogecoin, pretty sure it’s the next big thing,” Adobe employee Jackson Palmer tweeted in 2013, responding to the viral doge meme. Dogecoin didn’t exist at the time, so his comment was merely a jab at the growing Bitcoin hype. Billy Markus, an IBM software developer, was instrumental in bringing Palmer’s joke to life.
The current price of Bitcoin is about $ 53,877.50, with 18.7 million Bitcoins in circulation and a market capitalization of $ 1.1 trillion.
The current price of Dogecoin is about $0.3153, and there are nearly 130 billion Dogecoin tokens in existence, with a market capitalization of $40 billion.
Despite its irony, Dogecoin has one redeeming feature: it, like Bitcoin, is based on blockchain, the peer-to-peer technology that supports cryptocurrencies.
Celebrities Supporting Bitcoin
Almost every tech leader, including Jack Dorsey, Mark Cuban, and Elon Musk, is currently supporting Bitcoin. Mike Tyson, a famous former boxer and social media star, saw the potential in Bitcoin far earlier than most celebrities and has been a supporter since 2015. In November 2020, Game of Thrones actress Maisie Williams joined the Bitcoin trend. The American rapper made his music available for purchase using Bitcoin in the early days of the cryptocurrency in 2012, and the list of Bitcoin supporters goes on.
Elon Musk is likely responsible for a great deal of the Dogecoin hype. Tesla and SpaceX’s brilliant CEO has repeatedly tweeted on the topic. Musk, for example, stated in April 2019 that Dogecoin may be his favorite cryptocurrency. Musk had previously posted an image of a fictional magazine called Dogue, a pun on the famous publication Vogue, in 2021.
Musk later clarified his statements during a Clubhouse chat a few days later, stating, “Occasionally, I make jokes about Dogecoin, but they are always only supposed to be jokes.” Musk went on to say that cryptocurrency was invented as a joke.
Ultimately, consider this: if Dogecoin’s creators didn’t take it seriously, there’s no need for anyone else to. With no cap on the number of tokens available, Dogecoin is as scarce as air. As a result, investors should proceed with caution if they want to invest in this digital currency. Sure, some people have made it big with Dogecoin, and others will do so in the future. However, somebody normally wins the lottery every week, which doesn’t mean you can spend all of your money on lottery tickets.