Never thought that I would be writing a blog on such an obnoxious topic. But, for some reason, this is trending on Google. So here we are. Yet again proving that over 80% of the people investing in crypto aren’t actually aware of the underlying technology. At this point, if you still believe that FOMO isn’t real, here’s a fun example for you!
People are YOLOing on a meme currencyTweet
The sentence that you just read, is a legit finance statement. Weird times huh? Investing because your friend’s friend made a fortune out of it is an equivalent of your parent’s comparing your marks with Sharma Ji ka Ladka.
In the month of May, both Bitcoin and Doge hit their all time high of $60,000 and $0.69 respectively. Ever since, people are searching the internet with terms like “Is Doge Coin the next Bitcoin?” We would explore these questions and a lot more in this blogpost.
So today, let us evaluate weather or not it is sensible to compare the two assets mentioned above and if yes, where to invest? Bitcoin Vs Dogecoin, here we go.
What is Bitcoin?
Back in 2009, when Satoshi Nakamoto came up with blockchain technology, Bitcoin or BTC emerged as one of the first cryptocurrencies in the world. If you still haven’t, I would strongly recommend that you read my blogpost on blockchain which would set the premise for this post. The technology is so intriguing in itself that you would forget about returns, investment for once.
Bitcoin aims to become the alternate currency of the world. With El Salvador government declaring bitcoin as a legal tender, there is something that hints that this is not just a bubble.
And even if it fails to become the currency of exchange across the world, there is a very interesting use case involved in BTC.
Since supply of bitcoin is capped at a 21mn, that makes it a inflation proof asset. As the demand grows, value of BTC will grow further owing the a fixed supply. Therefore, rather than considering it a currency, one may think of it as Gold.
RBI, Federal banks across the globe can’t just print it limitlessly like paper money. Therefore, your wealth would never be at the mercy of economic policies.
What is Dogecoin:
Dogecoin is a god damn meme. Two techy software engineers Billy Markus and Jackson Palmer once decided to make a practical joke on crypto ecosystem across the world. Therefore, they made a currency with a photo of dog on it. (Infamous Shiba Inu- Loved by Memers)
Ever since, no one, including Billy and Jackson took Dogecoin seriously. Jackson Palmer even exited by selling his entire holdings for a used Honda Civic in 2015.
Both of them have repeatedly mentioned that this is just a joke which blew out of proportion.
Fast forward to 2021, a coin with a photo of a meme dog, not backed by founders themselves, having no software upgrades in past 4 years, has now a market cap of $36bn.
You see the likes of SEBI regulate the stock markets. But there is no such authority for crypto markets. Therefore, Mr. Elon Musk can say whatever he wants and get away with it. That’s what he did with Dogecoin as well.
To hell with underlying technology and stuff. Dogecoin is fueled by hype alone.
Bitcoin Vs Dogecoin:
I have repeated it multiple times before and will continue doing it until it is enough. Both these cryptocurrencies have no comparison whatsoever. While one of them has the potential of changing the course of humanity (more on it in another blogpost), another one is just riding on the back of some crazy billionaires, running a world wide experiment to test the manipulative side of their influence.
Despite that, I would like to put forth some facts to compare Bitcoin vs Dogecoin.
Starting off with some qualitative facts first:
Here’s a quantitative comparison of both cryptos.
Enough of grilling the almighty doge. Does all this mean that you should stay away from doge forever? The short answer is no. Thing is that I don’t believe in fighting with the market. It is rather beneficial to ride with the hype wave. So if you ask me, I have dogecoin in my portfolio. However, since I don’t believe in the problem Doge is trying to solve (because there isn’t any), this is definitely not long term.
It is one of those investments you do with the fun money. Every month, I keep around 5% of my money for my ‘Punterbaazi’ (Indian version of YOLO) endeavors. Doge has been a big piece of the pie of that 5% in the past and has reaped results too. I jumped in when it was Rs. 4.
So, what do you think about crypto eco system? Do you still think we should compare likes of Doge with the BTC?
Until Next Time. . .