Bitcoin (CRYPTO: BTC) and Dogecoin (CRYPTO: DOGE) have both been hot investments over the past 12 months, surging 650% and 18,600%, respectively, at recent prices. Despite being built on similar technology, these cryptocurrencies have very different origin stories.
Bitcoin was created by the pseudonymous Satoshi Nakamoto in 2009. The mysterious Nakamoto published a white paper detailing how Bitcoin could be used to build a new financial system — one that reduced transaction costs by eliminating the need for financial institutions.
By comparison, Dogecoin was created as a joke. In 2013, Adobe employee Jackson Palmer referenced the popular doge meme in a tweet: “Investing in Dogecoin, pretty sure it’s the next big thing.” At the time, Dogecoin didn’t exist, and his comment simply poked fun at the growing hype surrounding Bitcoin. However, IBM software developer Billy Markus helped bring Palmer’s joke to life.
So, which of these red-hot cryptocurrencies is the better investment?
Cryptocurrency is built on blockchain
Despite being a joke, Dogecoin does have one redeeming quality: Like Bitcoin, it’s built on blockchain, the peer-to-peer technology that powers cryptocurrencies.
Dogecoin lacks ‘substantive differentiation’:These 3 stocks are much smarter buys
Are you tracking the price of Dogecoin? Should you buy it?:Your cryptocurrency questions answered
Blockchain is a distributed ledger that records every transaction on a network. Its genius is that it eliminates the need for a…