Here’s far more explanation than is required to settle this debate, is Dogecoin better than Bitcoin? A thread https://threadreaderapp.com/thread/1390038230616002561.html
1/ It is *really important* to understand that Bitcoin is very different from Dogecoin.
Some are making jokes comparing the two, especially as Doge has outperformed BTC + ETH this year.
Many of you already know, but for everyone else, here are some of the key differences 🧵
2/ Bitcoin is absolutely scarce. There will never be more than 21 million Bitcoin.
Dogecoin is infinite. The system is on track to mint 14.4 million new Doge each day and 5.2 billion more Doge each year, forever.
3/ Bitcoin’s issuance is predictable. The users, who are self-interested to preserve the system, control the rules.
Dogecoin’s issuance is unpredictable. It can and has been altered. For example, in 2014 the creators simply changed the monetary policy from finite to infinite.
4/ Bitcoin is decentralized as a result of a robust architecture of full nodes, where individuals run the Bitcoin software at home or work.
There are tens of thousands of these worldwide. Users, not miners or developers, decide which blocks are valid and which software to run.
5/ Dogecoin is not decentralized. Nodes are hard to run and there are at most, a few hundred unique economic actors running them, and probably way fewer.
There is no evidence that devs, miners, or whales would have any trouble changing the rules of the system if it suited them.
6/ Bitcoin has a strong culture of self-custody. Millions of people + institutions directly hold millions of BTC. This prevents capture.
Dogecoin has a GME culture. Many ape into the asset on apps like Robinhood, which don’t permit self-custody, making it vulnerable to capture.
7/ Bitcoin is a trillion-dollar asset adopted by well-known, major corporations as a store of value. It is spreading through Wall Street and the global banking system.
Dogecoin is a 70 billion-dollar asset which has been adopted by retail traders and a handful of whales.
8/ Bitcoin has global + local liquidity and in every major urban area on earth someone is happy to buy BTC from you. Robust p2p markets exist worldwide as shown by LocalBitcoins/Paxful.
Dogecoin is only available on select exchanges + doesn’t have p2p markets or infrastructure.
9/ Bitcoin is one of the largest + most active software projects in the world, upgraded continuously. Its latest major upgrade Taproot is now in the activation process.
The Dogecoin codebase is on life support, barely updated since 2017. It’s essentially a dead software project.
10/ The creator of Bitcoin is unknown. If they were known, they would be in prison because BTC threatens the fiat system as well as dollar primacy as a world reserve currency.
The creators of Dogecoin are well known, and fine, because it’s a joke that doesn’t threaten anyone.
11/ The largest govts in the world including China, India, Nigeria, and Turkey have tried to limit citizens from exchanging fiat for BTC. They have failed and usage has exploded.
The largest govts have not taken any specific action against Doge because it is non-threatening.
12 / Yes, people can make a lot of money buying and selling Dogecoin, *if* they can time the market.
They will have to deal with high short term capital gains taxes, because few actually hold Dogecoin for the long run, for all of the reasons listed above.
13/ Remember: Dogecoin has had several insane pumps like this before, only to later fall in value by 90%+.
In sum: Please do not listen to anyone who says Dogecoin is better than, no different than, or even remotely similar to Bitcoin.
14/ For more reading, there’s a comprehensive report by @theinstagibbs and team explaining all of this in detail:
15/ Another thing that seems important to mention, 1 single address holds more than 27% of Doge, and the top 101 addresses own ~67% of all Doge.
16/ Whoops! The report was by @intangiblecoins and team. Twitter handle auto-fill fail. Do read it!
17/ And for folks saying that Doge inflation will eventually trend to zero “just like” Bitcoin, consider that in 2030, Doge inflation will be 39%, or 90x Bitcoin’s rate by that stage. And the ultimate point remains folks can change the issuance pretty easily. Not so with BTC.
18/ To clarify the last tweet:
Doge’s supply will grow by ~110% by 2050.
BTC’s supply will grow by ~12% by 2050.
That is *if* Doge issuance is not changed — a big if. So while the core issue remains Doge’s malleability, the near-term inflation difference is still significant.
19/ Another important point raised by @eudaimoniawuwei:
Bitcoin’s hashrate is ~176,000,000 TH/s.
Doge’s hashrate is ~248 TH/s.
It is immensely less secure than Bitcoin.