The main difference between Bitcoin $BTC and Dogecoin $DOGE lies in how their supply is formed in the market, which directly affects their long-term value.
Bitcoin: Scarcity and Store of Value (Deflation)
Bitcoin has a hard limit — only 21 million coins can exist. This creates an artificial scarcity, making it similar to digital gold.
Every four years, the number of new BTC that comes onto the market is halved (halving). Over time, this makes BTC increasingly rare. Because of this, Bitcoin is considered a deflationary asset that is well-suited for storing value. Its value increases if demand exceeds supply, which is continually shrinking.
Dogecoin: Transaction Utility (Managed Inflation)
Unlike Bitcoin, Dogecoin does not have a maximum limit. A fixed number of new coins – 5 billion DOGE – is issued every year.
This makes it an inflationary asset, but the inflation is managed. Although the issuance of new coins is constant, the percentage of inflation (5 billion relative to the total supply) becomes smaller each year. This ensures a continuous incentive for miners and keeps fees low. #BTCRebound90kNext?
