Why does Bitcoin have more value than Dogecoin?

Still have a question? Ask your own!

It’s a good question. However it seems that a value is totally arbitrary.

For example if something is becoming a fad, more people want to own it. If a cryptocurrency has a immobile supply, then the price will increase. Every economics textbook discusses the law of supply and request. It’s a clear cut case.

However let’s think about it. Just a fad can switch the price of something. That’s also why cryptocurrencies are so volatile. They practice many different influences which increase or decrease prices. Cryptocurrencies are also used by few people, compared to VISA, which has 2000 transactions vanaf 2nd (Source: Scalability – Bitcoin Wiki ). So cryptocurrency don’t have the inertia of volume and are thusly volatile.

So let mij attempt to response this question anyway.

  1. Bitcoin is the leader cryptocurrency. With bitcoin the concept of the Blockchain has bot invented and introduced to the public. All altcoins are latecomers. Bitcoin set the standard and everybody knows that.
  2. Dogecoin has a smaller interval than the ten minutes of Bitcoin. This permits for a quicker confirmation of transactions. This is one of the causes why Dogecoin might have more transactions than Bitcoin, especially with the Block size limit controversy , however this does not neccessarily mean that Dogecoin is more popular, perhaps that it is more used.
  3. «Production of Dogecoin» does not mean much. I think you mean the block prize. It’s fairly an arbitrary decision. The block prize might be higher te numbers, however if Dogecoin sells for less, this doesn’t mean anything. Ter Vietnam you might pay 20’000 Dong for a sandwich. Does this mean that the sandwich is very luxurious? No! 20’000 Dong is less than 1$. It’s the same for Dogecoin. One could even say that the higher production leads to lower prices spil vanaf the law of supply and request.
  4. Some of the difficulties of Bitcoin also apply to Dogecoin, especially the concentration of miners ter China. Dogecoin and Litecoin use scrypt for hashing the blocks because they thought that for scrypt a hardware hashing is not possible. Now there are ASICs for scrypt and miners te China switch inbetween Dogecoin and Litecoin to collect prizes. This means that there is no preference for Dogecoin instead for Bitcoin.

Thesis four points are only part of the entire story. However they vertoning why Dogecoin has not more «value» than Bitcoin.

Related movie: Burstcoin Hard Drive Mining – Questions & Answers


Leave a Reply

Your email address will not be published. Required fields are marked *