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 witness the heat from investors. However, Bitcoin managed to float and ignore the impact. Tesla sold its Bitcoin stake to fuel 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 in the three and six months ended June 30, 2022, it had a impairment of $170 million as well as realized gains of $64 million related to the conversion of its digital asset holdings into 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 impairments, respectively. Additionally, the company recorded other expenses of $36 million during the quarter ended June 30, 2022, related to recent employee layoffs.

As of June 30, 2022, Tesla has converted approximately 75% of its purchases into fiat currency. It now has net digital asset cash 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 is in the range of $222 million.

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According to reports, Musk said Tesla’s latest Bitcoin selloff shouldn’t be taken as a final verdict on the cryptocurrency. He cited the uncertain Covid situation in China as the main reason for increasing cash reserves and accounting gains in Bitcoin. However, the CEO of Tesla 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 is trading at $23,599.39 up 9.91% over the 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 a 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 semi-annually the token has contracted around 52.5%. 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, on CoinDesk, Bitcoin has increased by almost 12% in one month. However, Bitcoin’s semi-annual decline is around 38%, while year-to-date the leader has slipped nearly 51%. In one year, the fall of Bitcoin is around 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 same dog, the founders of Dogecoin believe 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 capped. This means that there is no limitation on the number of Doge extractions. An investor can even mine Doge individually or by joining a mining pool. Bitcoin has a mining limit of 21 million.

Bitcoin trading started in 2009 without any source from its direction or owner. Nobody to this day knows who invented this digital coin, however, 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 readily available.

Should you invest in Bitcoin or Dogecoin?

Dileep Seinberg, and CEO of MuffinPay, Bill Payment & Utility Crypto, said, “The crypto market is facing a tough time in terms of price action. The aggression of the US Fed rate hike and rising inflation decide the market move 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 goes above that mark, we were to see $17,000, which was its previous psychological lows.

“On the contrary, when it comes to Dogecoin, it has been accepted more lately. Even the whale activity around Dogecoin has increased, reaching highs. But the impact of such occasions and Musk’s push are not long-lived as it lacks a substantial use case. We suggest investors remain cautious and only allocate a small amount to the token,” Seinberg added.

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