In this pandemic, we should start saving money since there are less job vacancies advertised on the websites or signboards. Investing is the best way that we have in order to keep our money growing. Why is investing different from the usual saving in a bank or cash saving? It is because when you save your money in the bank, the amount will only be the amount of money that you saved. For example, if you keep RM500 in the bank or by cash, in two to three months, that will be the exact amount that you will have. When you invest your money, there are higher chance for your money to increase depending on the currency (or in other words, your money will grow)
But, you have to know that investment is not just as easy as putting in an amount of money as the capital and bam! Your money multiplies on its own. No, it does not work like that. You have to at least have the basic knowledge of investment especially in cryptocurrency. Without knowledge you are prone to face money losses rather than gaining profits.
There are so many types of cryptocurrencies that we can find in the world. So, today I will explain a bit about the differentiation between Bitcoin and Dogecoin.
What is bitcoin?
Do you know that bitcoin is the most famous cryptocurrency as it has been used for quite a long time? Bitcoin is a peer-to-peer cryptocurrency system that performs transactions using digital units of exchange known as bitcoin. Since its inception in 2009, the Bitcoin network has grown to influence, if not define, the cryptocurrency market.
What is Dogecoin or Doge mama token?
Dogemama is a memecoin similar to Dogecoin and Shiba Token. However, it is based on the Binance Smart Chain foundation, which is more environmentally friendly and efficient. It has a processing speed that is 50% quicker than Ethereum and costs a tenth of the price.
What makes both of these cryptocurrencies different?
Bitcoin is considered as the ‘gold’ cryptocurrency so it has limited available coins. Dogecoin’s coin supply is infinite. Because there is no cap, the currency can expand indefinitely without being connected to anything.
Miners must solve hard mathematical problems online in order to add new Bitcoins. It necessitates a strong infrastructure with powerful computers and a high electricity consumption. It is contradicted with the mining of doge mama tokens where it is more environmentally friendly and also not as secure as bitcoin.
- Competition in cryptocurrency
Bitcoin has better competition because of its high value and reason why the value changes sometimes. It competes with other cryptocurrencies such as Ethereum (ETH) because they are basically in the same ‘league’. Meanwhile, the only reason dogecoin rises is because of the internet hype. To earn a fast gain, online speculators have been pushing up its price, and celebrity billionaires like Elon Musk have also supported Dogecoin on social media. When the price of an investment does not reflect its underlying fundamentals, it is just a matter of time until it falls.
All in all, before investing in any types of cryptocurrencies make sure you already have enough knowledge about it to avoid money losses.