Do you always think that mining Bitcoin (BTC) and Dogecoin (DOGE) is pretty much the same? Both involve machines buzzing away, and what you get is just coins? In fact, the two differ drastically from 'underlying logic' to 'difficulty in making money', especially for ordinary players. Choosing the right one can lead to profits, while choosing the wrong one could mean losing everything! Here are 5 core differences, make sure to compare them quickly~🐶💎
1️⃣ Fundamental: The mining algorithms are vastly different, and mining machines are not interchangeable.
Bitcoin uses the SHA-256 algorithm, which has extremely high requirements for the 'hash rate density' of mining machines. It must use specialized 'ASIC miners' (like Bitmain's Antminer), and ordinary computers or graphics cards cannot mine it at all; it belongs to a 'dedicated equipment exclusive track';
Dogecoin initially used the Scrypt algorithm, which originally supported GPU mining, but later was also dominated by ASIC miners (Dogecoin-specific miners) — the key point is! BTC's ASIC miners cannot mine DOGE, and DOGE's miners cannot mine BTC; the devices are completely incompatible, and if you buy the wrong one, it can only be considered scrap metal.
2️⃣ Mining Models: Bitcoin 'going solo is a dead end', Dogecoin can 'mine in tandem'
Bitcoin mining is now completely 'monopolized by mining pools', no matter how strong an individual miner's computing power is, they cannot compete with the leading mining pools (like F2Pool, Poolin); the probability of solo mining a block is lower than winning the lottery, and it is necessary to join a mining pool to share the profits;
Dogecoin is more flexible! In addition to mining DOGE individually, it can also 'merge mine' with Litecoin (LTC) (because LTC is also based on the Scrypt algorithm) — simply put, when mining LTC, you can also mine DOGE at the same time, equivalent to 'earning two returns for one electricity bill', a model that Bitcoin completely lacks.
3️⃣ Reward Mechanism: Bitcoin 'mines less and less', Dogecoin 'can be mined indefinitely'
Bitcoin has a strict total supply limit: 21 million coins, with rewards halving every 4 years; the last coin will be mined in 2140, and currently, the reward for mining a block is 6.25 BTC, which will only decrease in the future;
Dogecoin has no total supply limit! The initial design was '50 billion new coins each year', although the rules were changed in 2021 (fixed at 10 billion new coins each year), but essentially it is 'unlimited supply', with a reward of 10,000 DOGE per block mined, far exceeding Bitcoin in quantity, but with a lower individual value, winning by 'volume'.
4️⃣ Mining Costs: Bitcoin 'competes on electricity costs + equipment', Dogecoin 'competes on cost control'
The core of Bitcoin mining is 'low-cost electricity + high-performance mining machines' — because BTC has a high unit price, even if the electricity cost is a bit high, as long as the computing power is sufficient, it can still be profitable, but the investment in equipment is enormous (a high-end ASIC miner costs tens of thousands), and electricity costs can account for 60%-70%, so industrial electricity and green electricity must be sought to make a profit;
Dogecoin, because of its low individual value (a few cents each), is 'more sensitive to costs' — if electricity costs are slightly higher, it may not cover the profits, so Dogecoin miners tend to prefer 'low-cost GPU mining machines' (early on) or 'merged mining' (now), profiting by 'saving costs + earning quantity', with investment in equipment being lower than Bitcoin, but earning 'hard-earned money'.
5️⃣ Market Positioning: Bitcoin 'mining is the cornerstone of the ecosystem', Dogecoin 'mining is more like a byproduct'
Bitcoin mining is the 'heart' of the entire network — miners maintain the blockchain's security, and the degree of decentralization in mining directly determines Bitcoin's value, belonging to the 'core of the ecosystem', so mining has always been valued, with rapid technological iterations (mining machines becoming increasingly powerful);
Dogecoin was initially a 'joke coin', and mining was more of a 'community spontaneous action'; later, although dedicated mining machines were developed, the entire ecosystem relied more on 'Elon Musk's promotion' and 'community enthusiasm', the importance of mining is far less than that of Bitcoin, and many players even feel that 'buying DOGE is more cost-effective than mining DOGE', making the presence of mining relatively weak.
