Bitcoin Vs Dogecoin What’s the Difference?
It would be an exaggeration to believe that every Elon Musk tweet profoundly disrupts the cryptocurrency market, in this case, the Dogecoin market. Certainly, after each of its publications, we observe changes in the short term. Indeed, candles in the minutes after, the hour after, and even in four hours are important. Then the market rebalances itself one way or the other.
Until recently, the boss of Tesla had fun posting a tweet that elicited strong reactions. This is the symbol of Bitcoin and a broken heart. In fact to support his publication, he posts the image of a couple who no longer love each other. Is it now the disenchantment between Elon Musk and Bitcoin? What is the motive behind this post? The question needs to be asked.
Elon Musk, versatile about Bitcoin
Looking at the history of Elon Musk’s reactions, we see that there was the period when he admitted Bitcoin. During this period, he championed Bitcoin. Tesla, his vehicle sales company, offered to buy cars with Bitcoin to its customers. Then there was this period when he raised an environmental issue. At this moment, he has clearly expressed his preference for Dogecoin in an ironic way.
Elon’s goal is to make Bitcoin greener and more energy-efficient. Obviously, it is paradoxical that he, who promotes sustainable development, can agree to finance an energy-intensive protocol. For the public, mining Bitcoin is extremely expensive and dangerous for the environment. Despite the obvious impact Elon Musk’s latest tweets have had on cryptocurrency markets, Filecoin is arguably resisting because of its fundamentals.
What is the strength of Dogecoin?
While it is true that Dogecoin is devoid of fundamentals, it must be recognized that there is a strong community behind this project. Therefore, it is legitimate to look much more into this digital asset. Since Tesla’s boss touted Dogecoin, several things have happened. Indeed, the US exchange Coinbase pro has listed the Doge cryptocurrency and traditional Coinbase will soon do so. It is becoming mainstream since many people will now be able to trade, buy and sell Dogecoin better than in the past.
When the listing was made on Coinbase pro, there were trades of over $ 47 billion, an increase of 690% from the week before. Which is huge! The price of Dogecoin climbed 40% following this announcement, but has since fallen. In addition, the Doge / Dollars pair has become the 4th most traded pair behind Ethereum, Bitcoin and Polygon on the platform.
There are certainly no fundamentals behind Dogecoin, but there is a strong community behind it, especially on Twitter. Indeed, a few weeks ago, Twitter launched a service that allows you to create audio discussions directly with a group of people. The Doge community has taken over this service and is sending messages all day long.
Add to this the fact that there is a growing rumor that, if Elon Musk is talking about Dogecoin, it must be because he plans to do something with it. What is certain is that we have gone from a trade volume of $ 6 billion to $ 47 billion.
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