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

When Tesla announced that it had sold 75% of its digital assets, many expected the crypto market, especially Bitcoin, to experience the heat from investors. However, Bitcoin managed to float and ignore the impact. Tesla sold its Bitcoin stake to burn its cash reserves.

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

Per As of June 30, 2022, Tesla has converted approximately 75% of its purchases to fiat currency. It now has net digital asset inflows totaling $936 million in the six months ended June 30, 2022, from the sale of digital assets. That said, the fair market value of the remaining digital assets held by the company as of June 30, 2022, in the range of $222 million.

Advertising

According to reports, Musk said that Tesla’s recent Bitcoin sale should not be taken as a final verdict on the cryptocurrency. He cited the uncertain Covid situation in China as the main reason for increasing the liquidity reserves and accounting gains in Bitcoin. However, Tesla’s CEO has hinted that he will increase his 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 data from CoinMarketCap. While its Ethereum counterpart climbed 14.95% to $1,709.18. On the other hand, Dogecoin is trading at $0.06799 up 8.16%.

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

According to data from CoinDesk, Dogecoin’s monthly decline is around 4%, while the token has fallen around 52.5% semi-annually. Since the beginning of the year, Dogecoin has fallen by more than 61%, in one year it has fallen by almost 68%.

On the contrary, Bitcoin on CoinDesk is up almost 12% in a month. However, Bitcoin’s semi-annual decline is around 38%, while leading year-to-date is down almost 51%. In one year, Bitcoin’s decline is about 42%.

Bitcoin has recovered faster than Dogecoin from the highly volatile market conditions that started 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, the founders of Dogecoin believe that the coin is a fun, lightweight cryptocurrency and has the potential to appeal beyond Bitcoin’s mainstream audience. Unlike Bitcoin, Dogecoin has a block time of 1 minute and its total supply is not limited. This means that there is no limit on the number of Doge extractions. An investor can even mine Doge individually or by participating in a mining pool. Bitcoin has a mining limit of 21 million.

Bitcoin trading started in 2009 without any source from its direction or owner. To this day, no one knows who invented this digital coin, but many speculations and names have arisen. Bitcoin gained popularity in early 2017 and became the very first cryptocurrency to actually be used. Bitcoin is decentralized and easily accessible.

Should you invest in Bitcoin or Dogecoin?

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

“On the contrary, when it comes to Dogecoin, it has become more accepted recently. Even the whale activity around Dogecoin has increased dramatically and has reached heights. But the impact of such occasions and Musk’s push is not long-lasting because a significant use case is missing. We suggest that investors remain cautious and only allocate a small amount to the token,” Seinberg added.

Catch all trade news, market news, breaking news and latest updates on Live Mint. Download Mint News app to get daily market updates.

More less

To subscribe to Mint Bulletins

* Please enter a valid email

* Thank you for signing up for our newsletter.

Leave a Comment