Bitcoin vs. Ethereum vs. Dogecoin: Which is the best?
RoamingPanda/Getty Images
Bitcoin, ethereum and dogecoin are popular cryptocurrencies that have received a lot of attention recently. But as they battle for crypto dominance, which is best?
Read: Want to diversify in a bear market? Consider these 6 alternative investments
What is the difference between Bitcoin, Ethereum and Dogecoin?
Before an investor decides which crypto may be better than others, they should explore where each crypto comes from and the value of each.
What is Bitcoin and how does it work?
Bitcoin (BTC) was the pioneer of the cryptocurrency movement. It was first a published idea by the alias “Satoshi Nakamoto” and a team of developers in 2008. The proposal for Bitcoin originated from a new way of transferring money through a decentralized network. In short, Bitcoin allows people to send and receive money with each other, but without the involvement of a third party, such as a bank.
Fast forward to 2022 – bitcoin has become a dominant asset in the crypto markets.
According to Coinbase, bitcoin is multi-functional and can act as:
- An investment car
- A reserve of value
- A new way to transfer money
- A new technology to explore
The “reserve of value” concept comes from bitcoin’s limited issuance, meaning there is only a 21 million bitcoin supply. The scarcity of bitcoin as a digital asset lends credence to the theory. Because of this, bitcoin is often labeled as “digital gold.”
What is Ethereum and how does it work?
Ethereum (ETH) is a base crypto for blockchain infrastructure, making this a layer-1 blockchain solution. It has the largest developed community of any crypto-asset and operates a decentralized network.
There have been nearly 3,000 applications built on Ethereum – by contrast, the second highest has just over 300 – and the fast-growing network has seen it maintain the title of “second largest cryptocurrency” by market capitalization in recent years.
What is Dogecoin and how does it work?
Dogecoin (DOGE) is branded as a peer-to-peer digital currency, just like bitcoin. Dogecoin is valuable because it has a purpose, much like money has a purpose.
While the token’s utility may be questionable, those who hold the cryptocurrency can actually use it as money at several physical or online locations, such as Tesla, GameStop, AMC Theaters, and Twitch. Consumers can also use dogecoin on sites like Bitrefill to buy gift cards for other sites, such as Amazon or Google Play.
Is Bitcoin better than Ethereum?
A significant difference between bitcoin and Ethereum is that Ethereum is programmable.
While investors and consumers view bitcoin as a payment network, Ethereum is a foundation upon which developers can build decentralized applications. Use cases spread across finance, games and social networks.
Another point of difference is that bitcoin operates on the proof-of-work protocol, while Ethereum will soon move to proof-of-stake. Both are known as “consensus mechanisms,” which are algorithms that allow networks to cooperate and remain secure.
PoW secures networks by using “mining” – a computational power to solve complex mathematical equations. However, PoS allows those who hold the cryptocurrency to “stake” their crypto to secure the network, and in exchange they receive a reward.
Of the two, PoW is the more secure option than PoS. So while investors may consider bitcoin more secure, they may find that Ethereum has more potential use cases as blockchain technologies evolve.
Which is better: Bitcoin or Dogecoin?
Since bitcoin has a limited supply, investors are likely to find it a better store of value than dogecoin, which can technically be issued forever.
In addition, despite the fact that dogecoin has a faster payment method – 33 transactions per second against bitcoin’s seven – the utility of bitcoin is far ahead. The introduction of the Bitcoin Lightning Network has made transactions low-cost, fast and scalable.
Which is better: Ethereum or Dogecoin?
Ethereum’s network provides far more use cases than dogecoin. Despite this, dogecoin is much more efficient for transactions. It costs about $0.06 to trade in dogecoin on average, according to Messari. ETH transactions, by comparison, have to pay a gas fee. While this can be a fraction of a cent, it can also be more than $100.00, depending on demand.
Ethereum intends to solve this problem through “sharding”, a development that will make secure distribution and transactions cheaper.
Which Has the Biggest Upside Potential: Bitcoin, Ethereum, or Dogecoin?
Wondering which cryptocurrency is set to explode? Here are the price predictions for each crypto over the next few years.
Bitcoin, Ethereum and Dogecoin Price Prediction 2022
The Coin Price Forecast estimates the following values for each crypto at the end of the year in 2022.
| Bitcoin | Ethereum | Dogecoin |
|---|---|---|
| $26,525 — 41% upside | $1,840 – 20% upside | $0.0773 — 31% upside |
Bitcoin, Ethereum and Dogecoin Price Prediction 2025
The Coin Price Forecast estimates the following values for each crypto at the end of the year in 2025.
| Bitcoin | Ethereum | Dogecoin |
|---|---|---|
| $47,635 — 153% upside | $3,081 – 100% upside | $0.0999 — 67% upside |
Bitcoin, Ethereum and Dogecoin Price Prediction 2030
The Coin Price Forecast estimates the following values for each crypto at the end of the year in 2030.
| Bitcoin | Ethereum | Dogecoin |
|---|---|---|
| $87,588 — 365% upside | $5,229 — 240% upside | $0.1898 — 223% upside |
Final Take
From a utility and risk-reward perspective, both bitcoin and ethereum appear to be better long-term choices than dogecoin. Moreover, the long-term growth trends of both suggest that they will be the future dominant digital assets in the crypto markets.
The information is accurate as of September 13, 2022, and is subject to change.
Our in-house research team and on-site financial experts work together to create content that is accurate, unbiased and up-to-date. We fact-check every single statistic, quote and fact using reliable primary sources to ensure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial guidelines.
