Cryptocurrency. It’s every urban professional’s favorite thing to talk about these days. There are podcasts about it, whole TikTok profiles devoted to explaining it, and careers in mining/trading it. But how do you get started understanding it? What are the differences between things like Bitcoin vs. Dogecoin?
We’re giving you a quick look at that below.
The Basics of Crypto
To understand Bitcoin and Dogecoin, along with the hundreds of other cryptos out there, you need to understand what crypto is. This isn’t an easy task – most people can’t (or choose not to) wrap their heads around it.
For your sake, we’ll make this explanation as simple as possible.
Cryptocurrency is a type of monetary tender that exists on a blockchain. A blockchain is like a digital ledger of peer-review services all in one.
The blockchain consists of blocks. There’s the block that starts out, then whenever a change is made (like a bitcoin changes hands), a new block is added to the network. Each time there’s a change, the block’s identifier changes, so each has a unique identification number (for lack of a better term).
Networks have peer review groups that look at each new block to make sure it’s legitimate and decide to validate it from there. That’s why crypto is considered more secure than other tenders.
What Is Bitcoin?
Bitcoin was the first cryptocurrency on the market. The first coin was “mined” in 2009 by an anonymous user using the pseudonym Satoshi Nakamoto.
It gained popularity in 2012/2013 and has been on a rocketship of success since. Way back in the day, you could get a Bitcoin for something like 89 cents.
Not anymore. In 2021, the average price for a singular bitcoin was $49,000. That’s a lot of money!
People make money by buying, selling, and trading Bitcoin (and other cryptos) when their values go up and down. Anyone can buy into the market by using a wallet, like bytefederal.com.
What Is Dogecoin?
Meme culture is a serious thing. Anyone who owns Gamestop stock can tell you that (#tothemoon).
As such, meme culture founded Dogecoin with the help of Elon Musk.
Legend has it that people were joking around on Reddit about what it would take to make a joke cryptocurrency, using the famous “doge” meme as its mascot.
- This joke got bigger and bigger until Tesla man Elon Musk saw it. He has the kind of money to do these things, so he thought, why not make the joke a reality?
That was in 2014. Eight years later, Dogecoin is one of the most famous cryptocurrencies on the market.
Bitcoin vs. Dogecoin
If you have the kind of money to buy into Bitcoin, that’s great. It’s definitely the higher value of the two, and people take it more seriously.
But if you don’t have that kind of money, Dogecoin is a more accessible option.
Follow our site to learn more about crypto topics, like this guide on Bitcoin vs. Dogecoin.