Why do people take Bitcoin more seriously than Dogecoin?
Whenever bitcoin starts to lose its value, people may think that its utilisation is the same as the crypto coin, which was created as a joke, i.e. Dogecoin. There are significant differences between these two currencies, and the reason for the difference is not surely the volatility.
There are already more than 9000 digital currencies available in the market, and most of them have only one predecessor, and that is Bitcoin. After bitcoin, other coins have been modelled after it with better upgradation, so it can not only be used as a medium of transfer but also as a programmable system and a token for providing specific services such as Ethereum.
The reputation of these digital currencies is dependent on the creator of these coins, its usefulness, developers behind the coin and what services it can offer. All of them are not backed by investors or crypto enthusiasts. Also, if the technology behind the coins keeps on upgrading and the coin itself gets upgraded too, then these new features attract a lot of customers.
The functionality of digital coins
Crypto coins are also dependent on their functionality. Digital coins like bitcoin, Dogecoin, litecoin, etc., are purely used for transferring funds from one person to another. You cannot use these coins for anything other than that.
Then comes the next category, where you can use smart contracts. Ethereum, Cardano, waves, NEO these coins can be separately programmed and can be used in games and digital markets. There are several other categories, but these two are more prominent among them.
Difference in technology
Even though all crypto coins are based upon one single technology, and that being a blockchain, there are coins that have more potential than others in terms of practical use. For example, IOTA (Internet of things) has a specific kind of blockchain that enables it to conduct transactions at a much higher speed than bitcoin.
Other coins like Ardor, Nxt possess built-in characteristics, and they can be utilised in more ways than just sending coins, for example, messaging or creating marketplaces. Ethereum, Cardano these currencies have smart contracts features that can be used in more than one way, such as to facilitate asset management, property transaction and fundraising.
Due to huge data sent by people and the increasing use of cryptocurrencies, bitcoin and ethereum have become very slow compared to other platforms. Compared to the centralised VISA, which can handle up to 65000 transactions per second, Bitcoin has only the ability to conduct 7 transactions per second and Ethereum with the ability to conduct 15 transactions per second.
With the improvement of blockchain technology, cryptocurrencies are going to be more advanced in nature, and lots of new coins will be released in the near future. It is just to see which coin can survive the market.