In today’s digital world, investing money isn’t as difficult as it seemed years ago. Even some may find it quite easy in the beginning. However, the problem starts when you want to invest money but are not sure where? After all, there is a wide range of investment options available. With so many options, it can be extremely difficult to choose the best investment platform to use as each carries its own levels of risk.
Most recently, the world witnessed a great interest in crypto investment. As the cryptocurrencies value soared on the backs of Elon Musk’s series of tweets, many people jumped on the wagon to turn their fortunes. Amongst all the cryptocurrencies, it was the Dogecoin that saw jumps beyond belief. Then it was the OG, the oldest cryptocurrency – Bitcoin that attained more credibility for its value that peaked as well. But simultaneously, there was another staple that people had ever relied upon since time memorial – It was gold. And soon, the fire caught up with seething debates upon which is a better investment to make – Gold, Bitcoin, or Dogecoin?
The world was first introduced to cryptocurrencies in 2009 when Bitcoin was launched. An individual or a group of people who go with the pseudonym Satoshi Nakamoto created Bitcoin. It was created as a decentralized digital currency where its supporters referred to it as digital gold and hedge against inflation. While Bitcoin is the most prominent and oldest of all cryptocurrencies in existence, Dogecoin made gigantic waves soaring in the crypto market earlier this year.
Dogecoin was created by two software engineers Billy Markus and Jackson Palmer, in 2013. Based on a popular internet “Doge” meme with Shiba Inu’s face on it, the creators never took it seriously. Even Markus wrote in one of his recent Reddit posts that Dogecoin was “created for sillies.” But fate, as they may call it, had other plans for it as people took it seriously upon noticing Tesla’s owner, Musk, interested in it. It soon became one of the most preferred cryptocurrencies when it comes to investment. And while people may be considering investing in cryptocurrency over gold and vice versa, a more important question would be – Which is a better investment to make? Bitcoin or Dogecoin.
“Is dogecoin the next bitcoin?” trended over Google after Dogecoin’s price went up by more than 12,000%. At the same time, Bitcoin itself has peaked over $63,000 recently. As a result, we see such trends where comparisons are evident between the two buzziest cryptocurrencies. Even the whole comparison is further important for the future of cryptocurrency. So, let’s find out which is the better option of the two through some important factors down below:
When it comes to cryptocurrencies, supply availability plays an important role in the crypto market. An unchecked unlimited supply can bear a negative impact on the cryptocurrency value. Bitcoin has a built-in scarcity where its market valuation has been capped at 21 million bitcoins. Dogecoin, on the other hand, can be printed every minute of every day. Thus, making it inflationary with a potentially infinite supply. Therefore, in comparison, Bitcoin beats Dogecoin to become the most reliable if you invest for a long-term gain.
When it comes to Bitcoin, it has a more well-funded and extensive ecosystem in comparison to Dogecoin. Even Mike Novogratz, CEO of Galaxy Digital and a crypto bull, had backed Bitcoin by stating it “is a well-thought-out, well-distributed store of value that’s lasted for 12 years and is growing in adoption, where dogecoin literally has two guys that own 30% of the entire supply.”
The Dogecoin currently wears the moniker of being the people’s coin. But it is feared that in a situation where the Dogecoin enthusiasts would give up on it, chances are Dogecoin would suffer unimaginably due to lack of developers on it. Thus, again proving why investing in Bitcoin would be a more dependable choice of the two.
Gold as an investment is nothing new. People have been using gold in trading for eons. It is considered to be the “Gold Standard” (Pun Intended) when it comes to investing. It is a unique asset that has high liquidity. It is free of liabilities and often seen as playing a fundamental role when it comes to an investment portfolio. Also, gold is considered one of the most effective diversifiers that can bring in competitive returns compared to several other financial assets. But does it fare better than the cryptocurrencies such as Bitcoin and Dogecoin? Let’s find out.
When we compared Bitcoin with Dogecoin, we noticed that the former serves as the better long-term investment offer. But Cryptocurrency, in general, is known for its volatile characteristics over the last decade there have been multiple crypto market crashes. It works as an ultimate hindrance that prevents most people from considering it a dependable option. At the same time, Gold has been there since time immemorial and works as one of the safest and fundamental options as an investment. However, if you would consider some other key aspects, the outcome might be different. After all, cryptocurrency is being referred to as the future of currency.
Some of the key aspects involved in it are – Supply and Demand, Authenticity, and Liquidity.
Since the Bitcoin numbers are already available, it will easily hold the most supply and demand in the future compared to gold as gold numbers are indefinite and unpredictable currently. Likewise, Dogecoin will even worsen when it comes to supply and demand than Bitcoin and gold.
When it comes to verifying authenticity, verification of both Bitcoin and Dogecoin can be done immediately, courtesy of blockchain technology. However, verification of gold can take hours and even days.
While gold has a high liquidity value, it still suffers from quick conversion ability. For example, you cannot go to a shopping mall and make a purchase with a gold bar or gold coin immediately. In comparison, you can comfortably convert your crypto coins in real cash within minutes at any available exchange center.
While all three (Bitcoin, Dogecoin, and Gold) have their perks and problems, Bitcoin can be looked upon as the better long-term investment option. Gold falls behind in some aspects but will continue to hold its own “Gold Standard'' in the years to come. You may still prefer gold over Bitcoin due to the risk concerns. But it doesn’t mean Dogecoin stands nowhere near the two in comparison. As on its day, Dogecoin can beat both Bitcoin and gold in terms of return. It is just that the problem with Dogecoin is far more where it is much like jumping on a wave and surfing while you can while genuinely, Bitcoin investment is superior to gold.
We, at OpenGrowth, are committed to keeping you updated with the best content on the latest trendy topics from any major field. Also, both your feedback and suggestions are valuable to us. So, do share them in the comment section below.
*Note: The content published above was made in collaboration with our members.
A lone wolf by definition, a writer by heart, and a lost star with ambitions to light up the dark both inside and around me, sometimes by immersing myself into books or video games or traveling with a backpack to an uncertain destination believing that life is all about the choices we make and we don't.