1/ It is *really important* to understand that Bitcoin is very different from Dogecoin.

Some are making jokes comparing the two, especially as Doge has outperformed BTC + ETH this year.

Many of you already know, but for everyone else, here are some of the key differences 🧵
2/ Bitcoin is absolutely scarce. There will never be more than 21 million Bitcoin.

Dogecoin is infinite. The system is on track to mint 14.4 million new Doge each day and 5.2 billion more Doge each year, forever.
3/ Bitcoin’s issuance is predictable. The users, who are self-interested to preserve the system, control the rules.

Dogecoin’s issuance is unpredictable. It can and has been altered. For example, in 2014 the creators simply changed the monetary policy from finite to infinite.
4/ Bitcoin is decentralized as a result of a robust architecture of full nodes, where individuals run the Bitcoin software at home or work.

There are tens of thousands of these worldwide. Users, not miners or developers, decide which blocks are valid and which software to run.
5/ Dogecoin is not decentralized. Nodes are hard to run and there are at most, a few hundred unique economic actors running them, and probably way fewer.

There is no evidence that devs, miners, or whales would have any trouble changing the rules of the system if it suited them.
6/ Bitcoin has a strong culture of self-custody. Millions of people + institutions directly hold millions of BTC. This prevents capture.

Dogecoin has a GME culture. Many ape into the asset on apps like Robinhood, which don't permit self-custody, making it vulnerable to capture.
7/ Bitcoin is a trillion-dollar asset adopted by well-known, major corporations as a store of value. It is spreading through Wall Street and the global banking system.

Dogecoin is a 70 billion-dollar asset which has been adopted by retail traders and a handful of whales.
8/ Bitcoin has global + local liquidity and in every major urban area on earth someone is happy to buy BTC from you. Robust p2p markets exist worldwide as shown by LocalBitcoins/Paxful.

Dogecoin is only available on select exchanges + doesn't have p2p markets or infrastructure.
9/ Bitcoin is one of the largest + most active software projects in the world, upgraded continuously. Its latest major upgrade Taproot is now in the activation process.

The Dogecoin codebase is on life support, barely updated since 2017. It's essentially a dead software project.
10/ The creator of Bitcoin is unknown. If they were known, they would be in prison because BTC threatens the fiat system as well as dollar primacy as a world reserve currency.

The creators of Dogecoin are well known, and fine, because it's a joke that doesn’t threaten anyone.
11/ The largest govts in the world including China, India, Nigeria, and Turkey have tried to limit citizens from exchanging fiat for BTC. They have failed and usage has exploded.

The largest govts have not taken any specific action against Doge because it is non-threatening.
12 / Yes, people can make a lot of money buying and selling Dogecoin, *if* they can time the market.

They will have to deal with high short term capital gains taxes, because few actually hold Dogecoin for the long run, for all of the reasons listed above.
13/ Remember: Dogecoin has had several insane pumps like this before, only to later fall in value by 90%+.

In sum: Please do not listen to anyone who says Dogecoin is better than, no different than, or even remotely similar to Bitcoin.
14/ For more reading, there's a comprehensive report by @theinstagibbs and team explaining all of this in detail:

15/ Another thing that seems important to mention, 1 single address holds more than 27% of Doge, and the top 101 addresses own ~67% of all Doge.

(H/T @bulzz_i)
16/ Whoops! The report was by @intangiblecoins and team. Twitter handle auto-fill fail. Do read it!
17/ And for folks saying that Doge inflation will eventually trend to zero “just like” Bitcoin, consider that in 2030, Doge inflation will be 39%, or 90x Bitcoin’s rate by that stage. And the ultimate point remains folks can change the issuance pretty easily. Not so with BTC. Image
18/ To clarify the last tweet:

Doge's supply will grow by ~110% by 2050.

BTC's supply will grow by ~12% by 2050.

That is *if* Doge issuance is not changed -- a big if. So while the core issue remains Doge's malleability, the near-term inflation difference is still significant.
19/ Another important point raised by @eudaimoniawuwei:

Bitcoin’s hashrate is ~176,000,000 TH/s.

Doge’s hashrate is ~248 TH/s.

It is immensely less secure than Bitcoin.

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More from @gladstein

30 Apr
1/ While doing research for my essay on the negative externalities of the petrodollar, I learned a huge amount. Much of it was shocking or surprising.

Here's a thread with a few of my favorite bits of insight, with links for further reading 🧵

2/ The Vietnam war was the first American war fought almost entirely on credit.

Previous wars were financed significantly by higher taxes:

3/ In 1971 the French were so worried that the dollar would devalue as a result of exorbitant American spending on war and social programs that they sent a battleship to New York City to collect their gold.

A few days later, Nixon closed the gold window:

Read 19 tweets
30 Mar
1/ In a new @Telegraph column @jamestitcomb claims that it is "hard to argue that Bitcoin has lived up to its mysterious inventor’s early intentions as a world-changing financial protocol" and says the main outcome has been making "a small number wealthy"

🧵 on why he is wrong:
2/ To be fair, it is easy to arrive at this conclusion if you completely ignore (as Mr. Titcomb does) how people are creatively using BTC worldwide.

If you only read buzzy US headlines about Tesla + NFTs, you'll miss the big picture. I hope journalists are willing to dig deeper
3/ A lower-bound estimate of unique Bitcoin users based on exchange data (excluding p2p activity) is ~130M people. Many of these millions are in emerging markets. For example there are 1.3M users of one Bitcoin trading platform alone (@Paxful) in Nigeria:

Read 23 tweets
29 Mar
Important to keep in mind:

Bitcoin's Proof-of-Work was invented to escape Proof-of-Stake financial systems, where the largest asset owners can unduly influence the rules of the game.

Thanks to PoW + full nodes, neither miners nor the biggest BTC hodlers can change the protocol.
In the coming year, we will see many people increasingly try to argue that Bitcoin should shift to Proof-of-Stake for various reasons.

This would defeat the entire purpose of Bitcoin.
Most recently, @Noahpinion argued that Bitcoin should move to Proof-of-Stake in Bloomberg.

By doing so he demonstrates that he does not understand how or why Bitcoin work.

@nic__carter did a great job dismantling his argument here:

Read 5 tweets
22 Mar
1/ Want to know who controls Bitcoin?

Read "The Blocksize War" by Jonathan Bier.

This should be *required reading* for any journalist or scholar writing about Bitcoin.

🧵 on some of my favorite insights:

2/ The book covers the "blocksize wars" of 2015-2017 and the two major visions for scaling Bitcoin to the world.

Which philosophy would win out, the one that prioritizes transaction volume + corporate control?

Or the one that prioritizes decentralization + individual control?
3/ This tour of the battle for the soul of Bitcoin starts with the scaling debates that began with Satoshi and revisits Gavin and Mike, Bitcoin XT/Classic/Unlimited, the DAO, SegWit, the NYA, Segwit2X, Bcash, NO2X, and the eventual triumph of a Bitcoin controlled by its users.
Read 21 tweets
18 Mar
New @DeutscheBank future of payments report on Bitcoin is out.

Their top conclusion? Bitcoin is “too important to ignore”

It’s long but interesting with some neat charts so here’s a 🧵:

2/ The title of the report is worth pondering:

“Bitcoins: Can the Tinkerbell Effect Become a Self-Fulfilling Prophecy?”

There are pictures of little girls wearing fairy costumes on the cover and Peter Pan quotes inside.
3/ DB: “Bitcoin’s value will continue to rise/fall depending on what people believe it is worth. This is the Tinkerbell Effect: the more believe in something the likelier it is to happen based on Peter Pan’s assertion that Tinkerbell exists because children believe she exists”
Read 21 tweets
16 Mar
1/ Honored to be cited by SEC Commissioner @HesterPeirce in her latest remarks on Bitcoin, human rights, and regulation.

This 🧵summarizes her thesis, inspired by the work of abolitionists, about why the US should be open, not closed, to liberation tech:

2/ “Harriet Tubman will soon grace our $20 bill… She brought herself and many other enslaved Americans to freedom through a remarkable combination of intelligence, courage, faith, boldness, diverse expertise, fearlessness, experience, strength, resilience, and cooperation”
3/ “These traits and experiences equipped her to serve in the Civil War as a scout, nurse, cook, and military expedition leader. Tubman’s commitment to liberty was not abstract, but personal and life-changing to each of the individuals whom she led on a grueling march to freedom”
Read 16 tweets

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