Bitcoin vs Dogecoin: Which Cryptocurrency to Choose in a Volatile Market

When Tesla announced that it has sold 75% of its digital assets, many expected the crypto market, especially Bitcoin, to witness heat from investors. However, Bitcoin has managed to float and shrug. Tesla sold its Bitcoin holdings to fuel its cash reserves.

Tesla had invested $1.5 billion in Bitcoin in the first quarter of 2021. In its SEC filing on July 25, Tesla said that during the three and six months ended June 30, 2022, it recorded an impairment loss of $170 million dollars as well as realized gains of $64 million in connection with converting its holdings of digital assets to fiat currency. In the first half of 2022, Tesla also realized gains of $128 million in connection with converting our holdings of digital assets to fiat currency, and the company also recorded $23 million and $50 million respectively in impairment losses on bitcoin. The company also recorded other expenses of $36 million during the three months ended June 30, 2022, related to the recent layoffs.

As of June 30, 2022, Tesla has converted approximately 75% of its purchases into fiat currency. It now has net cash flows related to digital assets that totaled $936 million in the six months ended June 30, 2022, from the sale of digital assets. That said, the company’s fair market value of remaining digital assets held as of June 30, 2022 is $222 million.

According to reports, Musk has stated that the recent sale of Tesla in Bitcoin should not be seen as a final verdict on the cryptocurrency. He cited the uncertain Covid situation in China as the main reason for increasing cash reserves and booked gains in Bitcoin. However, the CEO of Tesla has hinted to increase their Bitcoin holdings in the future. The billionaire also revealed that the company has not sold any Dogecoin.

On Thursday, Bitcoin traded at $23,599.39, up 9.91% in 24 hours, according to CoinMarketCap data. While counterpart Ethereum climbs 14.95% to $1,709.18. On the other hand, Dogecoin is trading at $0.06799 up by 8.16%.

In one week, Bitcoin’s gain is almost 5%, while Dogecoin is down almost 1%.

According to CoinDesk data, Dogecoin’s monthly drop is around 4%, while semi-annually, the token has fallen around 52.5%. Year to date, Dogecoin has fallen by over 61%, in a year it has fallen by almost 68%.

On the contrary, on CoinDesk, Bitcoin has risen by almost 12% in a month. However, Bitcoin’s semi-annual decline is around 38%, while year-to-date the leader has fallen almost 51%. In a year, Bitcoin’s dive is around 42%.

Bitcoin has recovered faster than Dogecoin from the sharply volatile market conditions that began since May.

Created by Billy Markus of Portland, Oregon and Jackson Palmer of Sydney, Australia, Dogecoin (DOGE) is based on a popular internet meme “doge” and is an open source digital currency. Since it has a dog meme, Dogecoin’s founders believe the coin is a fun, light-hearted cryptocurrency and has the potential to appeal outside of the core Bitcoin audience. Unlike Bitcoin, Dogecoin has a block time of 1 minute and its total supply is unlimited. It means that there are no restrictions on the number of mining of Doge. An investor can even mine Doge either individually or by joining a mining pool. Bitcoin has a mining limit of 21 million.

Trading in Bitcoin began in 2009 without any source of management or owner. No one to this date is aware of who invented this digital coin, but many speculations and names have surfaced. Bitcoin became popular in early 2017 and it became the first cryptocurrency to come into use. Bitcoin is decentralized and easily accessible.

Should you invest in Bitcoin or Dogecoin?

Dileep Seinberg, Founder & CEO, MuffinPay, Bill Payment & Utility Crypto said, “The crypto market is facing a tough time in terms of price action. The aggression from the US Federal Reserve rate hike and rising inflation will determine the movement of the market in the short term. When it As for Bitcoin, it scaled $23,000 last week but is now near $21,000. If it breaks this mark significantly, we could see $17,000, which was its previous psychological low.”

“On the contrary, when it comes to Dogecoin, it has seen more acceptance lately. Even whale activity around Dogecoin has increased dramatically, and has increased. But the impact of such occasions and Musk’s push is not long-lasting as it lacks a significant We would suggest investors to be cautious and only allocate a small amount in the token,” Seinberg added.

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