Bitcoin and Dogecoin are two of the world’s biggest digital currencies right now. They have both been spiking like crazy as of late, with Dogecoin now taking the lead and working hard towards potentially reaching one dollar per unit by the end of the year. While they both look similar at first glance, Mike Novogratz – a billionaire investor and former hedge fund manager – claim that these assets could not be more different, and that investors need to be aware of the risks they each pose if they are going to invest in the future.
Mike Novogratz On the Differences Between BTC and Doge
For one thing, both currencies have very different beginnings in that bitcoin was created with a purpose. The asset was designed to work as a payment currency and thus push fiat currencies and credit cards to the side at one point. Dogecoin, by contrast, was initially started as a joke, and ultimately became one of the world’s biggest digital currencies by accident after it garnered hardcore attention from the likes of Elon Musk and other high-profile figures.
In an interview with CNBC, Novogratz explains that bitcoin is “well-thought out,” and that it is a solid store of value that accomplishes a lot more than people give it credit for. He says it has been around for roughly 12 years and has shown itself to be a reliable asset for the most part.
When discussing Dogecoin, his words were less flattering. He states:
Dogecoin literally has two guys that own 30 percent of the entire supply.
In addition, he states that several companies are putting tons of money into bitcoin, and thus suggests that it is by far the more reliable asset given that this just does not seem to be happening for Doge.
Lastly, the prices of each asset are incomparable. Even though both currencies are suffering slightly at the time of writing, bitcoin is still trading for about $54,000 – roughly $10,000 less than where it stood just two weeks ago. Dogecoin, on the other hand, was trading for only a few pennies at the beginning of the year. Right now, one unit of Doge is going for about 38 cents, when just last week, the currency was selling for roughly 45 cents.
There Will Always Be Supporters
Dogecoin speaks to a lot of the same movement that GameStop did. There is a crazy excitement [from] very young investors around meme coins and meme ideas. I mean, it is shocking to me that GameStop continues to hold any value. Dogecoin is even more bizarre in that respect… Retail has the bit between its teeth in a lot of ways. They are not giving up on GameStop. They are not giving up on Dogecoin.
In the past, Novogratz has been such a fan of BTC to the point that he has likened it to “digital gold.”