Bitcoin Vs Ethereum Vs Dogecoin: Do you know what the difference is?

Bitcoin Vs Ethereum Vs Dogecoin: All these cryptocurrencies have grabbed the world's attention. Now, know what's the difference.

Bitcoin Vs Ethereum Vs Dogecoin: All the three cryptocurrencies are risky assets to invest in as they do not have government sanction. (AFP)

Cryptocurrencies have been in especially in vogue ever since tech titans such as Tesla CEO Elon Musk and Twitter founder and CEO Jack Dorsey started talking about them on various social media platforms and some even started accepting payment in this form. While Bitcoin has been around for quite some time and it has also been instrumental in familiarising the world with cryptocurrencies and its underlying technology, that is, blockchain, it is only recently that interest in it has peaked again.

For those of you who are new to this technology, a cryptocurrency is decentralized digital money based on blockchain tech. It can be used to buy goods and services. It can also be invested in like an asset. However, it is considered to be more volatile compared to other assets such as property and gold, simply because there is no underlying asset, nor is there any government backing in most countries. Unlike fiat currency, which is notes and coins that are issued by the central bank of a country, a cryptocurrency is not managed by a central government authority. Cryptocurrency is based on cryptographic proof that is verified and recorded on a blockchain program. Once recorded, the details of a transaction cannot be tampered with. Every transaction is secured with two sets of keys -- a public key and a private key, which make it secure.

Now that you have learned about the basics of cryptocurrency, let's take you through some of the most popular cryptocurrencies on the internet right now.

Bitcoin

Bitcoin is the first cryptocurrency. Its working principle was outlined by Satoshi Nakamoto in a paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” back in 2009.

Bitcoin.org says that “Bitcoin is a consensus network that enables a new payment system and completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is pretty much like cash for the Internet.”

Bitcoin can be purchased from Bitcoin exchanges and it can be used at a growing number of brick-and-mortar businesses like restaurants, apartments, and law firms. At the time of writing this article, the value of Bitcoin stands at $64,574.39 as per CoinDesk.

Ethereum

Ethereum is one of the most popular cryptocurrencies on the internet right now. Ethereum.org says that “Ethereum is a technology that lets you send cryptocurrency to anyone for a small fee. It also powers applications that everyone can use and no one can takedown.” ‘ETH' is a cryptocurrency by Ethereum that can be used on the internet for purchasing goods and services.

At the time of writing this article, the value of ETH stands at $4,167.99 as per Ethereum.org.

Dogecoin

Dogecoin is a cryptocurrency just like ETH and Bitcoin. It was created by software engineers Billy Marcus and Jackson Palmer in late 2013 as a part of a lighthearted joke for cryptocurrency enthusiasts. Its logo features a popular meme at the time that includes a deliberately misspelt word ‘doge' to describe a Shiba Inu dog.

Its value exploded earlier this year after Elon Musk tweeted about it. According to a Forbes report, Dogecoin is easier to mine compared to Bitcoin as it is easier for miners to complete the mathematical equations that complete and record transactions. Additionally, there is no cap on the creation of Dogecoin, which makes it a better option for processing payments.