Sat, August 06, 2022 ▪ 14:00 ▪
min. read – by
“Doge has memes and dogs,” said the man, who just sold his bitcoin holdings and continues to be a staunch supporter of Dogecoin. Yes, this is 100% Elon Musk. And we cannot do anything against him, even if he says that DOGE has assets that his senior BTC does not have. Among other things, a much higher transaction throughput.
Bandwidth: 30 Dogecoin and 7 bitcoins per second.
In a recent interview, Elon Musk made an unflattering statement about Bitcoin.
“Mostly I support Doge because Doge has memes and dogs. The current total transaction capacity of Dogecoin is much higher than that of Bitcoin. »
And he is not wrong when he says: 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 Auxiliary Proof-of-Work consensus algorithm has something to do with it. Add to this the “merged mining” process, which allows you to mine at no extra cost.
But you know Elon Musk has always been tempted by DOGE. His first demonstrations of support date back to 2021, when the American hundred billionaire began posting on Twitter promoting Dogecoin.
Enthusiasts were thrilled with his promise to send this cryptocurrency to the moon.
Doge’s father Musk never misses an opportunity to highlight DOGE both on social media and during his appearances on TV shows.
Recently, his company Tesla decided to get rid of a large portion of its bitcoin holdings. To say that this electric vehicle specialist previously had 42,000 BTC. Now he should not have more than 10,500 coins in his crypto wallet.
However, no DOGE was sold internally. Why should he? Didn’t he announce that Tesla and SpaceX would accept Dogecoin as payment?
Duel Bitcoin vs Doge, who will win?
The difference between Bitcoin and Doge is not just the number of transactions per second (TPS). It may also appear in:
- volatility level: DOGE is much less volatile than BTC, hence the increased interest of investors in this very coin in daily transactions;
- supply cap: while the total supply of bitcoin is capped at 21 million, Dogecoin has an unlimited supply cap;
- Scarcity: This limit on the maximum number of bitcoins contributes to the gradual increase in its value. For Dogecoin, the deficit will never be reached, and this is what its founders Palmer and Marcus were aiming for.
- hashing standard: for Bitcoin it is the SHA-256 of the National Security Agency (NSA), and for Dogecoin it is the Scrypt hashing standard for Litecoin.
In short, divergence points are not limited to TPS. And if you want to know which of the two cryptocurrencies is better, know that there is no single answer to this question. For example, if you take a profit, Dogecoin will bring a lot of profit to its investors. Note, however, that this memcoin seems to be more suitable for short-term investments. Its rival Bitcoin, if you can call it that, is nonetheless adapting to long-term investment. This is what hodlers are doing right now in the bear run.
Sources: Economic Observatory; Cointelegraph; Blog Crypto Basic; Technical crisis
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