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Updated on: Jun 7th, 2024
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4 min read
When it comes to choosing a cryptocurrency for investment, there can be confusion among investors as there are multiple options in the market. Bitcoin, Ethereum and Dogecoin are three of the most popular ones that have the attention of investors from around the world. Although there are some basic similarities among all these cryptos, they differ from each other in various aspects.
In this article, you will find a detailed comparison between these three cryptocurrencies.
The answer to this question depends on your use case. Each crypto coin was made for a different purpose, and you need to understand what they offer in order to select your perfect match. Let’s look at the differences between these three digital coins.
Bitcoin was created in 2009 by Satoshi Nakamoto as means to create a decentralised currency which negates the need for third parties. It has a finite supply of 21 million and is used worldwide as an international traded financial asset and a store of value.
This limit on the total number of coins maintains its value, which is dependent on demand and supply. Additionally, there are many crypto investors that call Bitcoin “digital gold” and treat it as a store of value.
Ethereum was the brainchild of Vitalik Buterin. He created this blockchain as a response to Bitcoin, which did not pay heed to the improvements that he had suggested. This blockchain runs on ‘smart contracts’ that execute themselves when a given set of conditions are met.
These smart contracts have a multitude of uses and help in removing intermediaries for validating transactions on the network. In addition, Ethereum has an extensive range of decentralised applications, NFTs, crypto games, etc., that has made the world of blockchain technology more utilitarian for people globally.
Furthermore, there is no limit on the total supply of Ethereum. However, there is a cap on the total number of new coins that can be mined in a year.
Dogecoin was launched in 2013 by Jackson Palmer and Billy Markus. It was created as a spoof of Bitcoin, and its main aim was to serve as a peer-to-peer network for people to transact among themselves. It started as a joke featuring a Shiba Inu dog as its logo.
Unlike other cryptocurrencies, Dogecoin is an “inflationary coin”. Additionally, it has no limit to the total number of coins that can be mined on its blockchain. However, it has a yearly issuance limit of 5 billion coins.
Although a meme coin, this cryptocurrency has received support from prominent personalities like Elon Musk. This has led its value to skyrocket over the years.
Here is a table containing the price, market cap and other metrics of Bitcoin, Ethereum and Dogecoin. It will help you understand their current market standings.
| Name | Ticker Symbol | Price | Current Market Cap | 24 Hour Trading Volume | Circulating Supply |
| Bitcoin | BTC | $19,907.73 | $380,984,029,768 | $24,726,719,641 | 19,141,268.00 BTC |
| Ethereum | ETH | $1,570.42 | $191,965,077,284 | $8,652,584,597 | 122,238,250.75 ETH |
| Dogecoin | DOGE | $0.06315 | $8,378,750,448 | $255,286,493 | 132.67B DOGE |
Note: The data in this table is based on the information collected on 4 September 2022.
Although cryptocurrencies are highly volatile and predicting their prices is a difficult job, experts have made an estimation of the prices of these crypto coins for the current year.
For Bitcoin, the price prediction for this year is between $10,000 and $28,000. In the case of Ethereum, it is $1,714 to $2,374. And, for Dogecoin, experts predict that the cryptocurrency price may reach the $0.3500 level by the end of 2022.
Bitcoin and Ethereum use the Proof-of-Work (PoW) consensus mechanism for validating transactions on their network. Here, the miners act as the validators of transactions and help in keeping the network decentralised and secure. When miners add new blocks to the blockchain, they receive newly minted coins from the network as a block reward.
The Proof-of-Work mechanism forces all its network participants to solve complex mathematical problems to verify transactions and add them to a block on the network. This process helps to prevent double-spending, corruption and abuse of power on the network.
Miners on Bitcoin and Ethereum use ASIC computers to solve the mathematical problems and get the right to add a block to the network. However, on Dogecoin, things are a bit different.
The consensus mechanism on Dogecoin is Scrypt-based, which is borrowed from Litecoin. This feature allows Dogecoin to share the functions of Bitcoin and its hard-forked counterparts. Thus, Dogecoin’s Proof-of-Work algorithm does not require miners to use ASIC computers to mine on the network.
This unique feature of Dogecoin’s consensus mechanism also enables its users to process transactions faster in comparison to Bitcoin.
Note: With the release of Ethereum 2.0, the network will move to the Proof-of-Stake (PoS) consensus mechanism for validating transactions on the blockchain.
Here is a chart that will show the price growth of these cryptocurrencies in the last five years:
| Name | Price change % in the last five years |
| Bitcoin (BTC) | +85.85% |
| Ethereum (ETH) | +298.39% |
| Dogecoin (DOGE) | +2,041.43% |
Note: The data in the table is based on an article dated 5 September 2022.
Bitcoin has launched a trading platform called Bitcoin Future. It is AI-based and has a self-trading feature that finds out the best time to buy and sell Bitcoin. This will help you invest and trade with them globally. However, some experts feel that the BTC prices might further drop in the coming days.
In case of Ethereum, the platform is on the verge of rolling out it’s much-talked-about upgrade called the Merge. Analysts predict this will help to catapult the platform’s efficiency and performance in the near future. ETH is already inching higher as investors eagerly await the Merge rollout.
Dogecoin, as many experts believe, will do much better in the long term. Its price will double by the beginning of the next year.
The transaction fee of a blockchain depends on its scalability. The higher the load of transactions on the blockchain, the more shall be the transaction fees.
As of 4 September 2022, the average transaction fee on Bitcoin is $1.014 per transaction. In addition, the average transaction fee on Ethereum is $0.4667 per transaction. For Dogecoin, the transaction fee stands at a little over $0.44.
Since its inception, Bitcoin has dominated the market cap of the cryptocurrency space. However, as the Ethereum Merge is close by, experts are thinking of the possibility of Ethereum overtaking Bitcoin.
This is due to the fact that Ethereum 2.0 will work on the Proof-of-Stake (PoS) mechanism and significantly improve its scalability. Furthermore, as Ethereum offers developers multiple options to build and deploy decentralised applications, it will provide this blockchain with better usability when it comes to Web 3.0.
Experts have predicted that there is a 43% chance of Ethereum flipping Bitcoin to become the cryptocurrency with the highest market cap.
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