Bitcoin vs Dogecoin: Which Cryptocurrency to Choose in a Volatile Market?

When Tesla announced it had sold 75% of its digital assets, many expected the crypto market, especially Bitcoin, to witness the heat of 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 $170 million impairment charge and realized gains of $64 million related to the conversion of its digital assets to fiat. -currencies. In the first half of 2022, Tesla also realized a profit of $128 million from the conversion of our digital assets into fiat currency. In addition, the company recorded $23 million and $50 million in bitcoin write-downs, respectively. In addition, during the quarter ended June 30, 2022, the company recorded other costs of $36 million related to recent employee layoffs.

As of June 30, 2022, Tesla converted approximately 75% of its purchases into fiat currency. It now has net digital asset 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 company’s remaining digital assets 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 sale should not be taken as a final verdict on the cryptocurrency. He cited the precarious Covid situation in China as the main reason for increasing cash reserves and accounting gains in Bitcoin. However, Tesla’s CEO has hinted that he will increase his Bitcoin holdings in the future. The billionaire also revealed that the company has not sold 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 downside, Dogecoin is trading at $0.06799, up 8.16%.

In a week, Bitcoin’s gain is close to 5%, while Dogecoin is down nearly 1%.

According to data from CoinDesk, Dogecoin’s monthly decline is about 4%, while the token has shrunk by about 52.5% semi-annually. Since the beginning of the year, Dogecoin is down more than 61%, down almost 68% in a year.

On the contrary, on CoinDesk, Bitcoin is up almost 12% in one month. However, Bitcoin’s semi-annual decline is about 38%, while the leader is down nearly 51% so far. In a year, Bitcoin’s decline is about 42%.

Bitcoin has recovered faster than Dogecoin from the highly volatile market conditions that have started since May.

Dogecoin (DOGE), created by Billy Markus of Portland, Oregon and Jackson Palmer of Sydney, Australia, is based on a popular internet meme “doge” and is an open source digital currency. Since it has a dog meme, the founders of Dogecoin believe the coin is a fun, lightweight cryptocurrency and has the potential to appeal outside of the mainstream Bitcoin audience. Unlike Bitcoin, Dogecoin has a 1 minute block time and the total supply is not limited. 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 of its direction or owner. To this day no one knows who invented this digital currency, but many speculations and names have arisen. Bitcoin gained popularity in early 2017, becoming the very first cryptocurrency to actually be used. Bitcoin is decentralized and readily available.

Should you invest in Bitcoin or Dogecoin?

Dileep Seinberg, founder and CEO of Bill Payment & Utility Crypto MuffinPay, said: “The crypto market is facing a tough time in price action. The aggression of the US Fed rate hike and rising inflation will drive the market movement in the near term. As for Bitcoin, it broke $23,000 last week but is now close to $21,000 If it were to break that figure significantly we could see $17,000 which was the previous psychological lows.

“On the contrary, when it comes to Dogecoin, it has become more accepted lately. Even whale activity around Dogecoin has increased dramatically and reached highs. But the impact of such occasions and Musk’s push are short-lived as a substantial use case is missing. We recommend that investors remain cautious and only allocate a small amount to the token,” Seinberg added.

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