By Alexander Grayson
Binance Coin (BNB) and Dogecoin (DOGE) are two of the top ten cryptocurrencies by market capitalization.
BNB is currently the 4th largest cryptocurrency while DOGE is the 8th largest. As their names are different, so is everything about them. In this guide, we will bring out the differences between the two cryptocurrencies.
If you were wondering which of the two to buy as an investment, this guide will also help you to decide by the time you’re done reading. Without any further waste of time, let’s dive right into it.
What Is Binance Coin (BNB)?
BNB is a crypto token that was created to power the Binance ecosystem. It is used to pay for fees on the BNB Chain and Binance Smart Chain (BSC) blockchains, both of which are blockchains owned by Binance.
The token is also used for staking on BSC. This is the process through which the BSC blockchain and network are secured. Validators who also help to verify transactions on the network stake their BNB and are rewarded with more BNB in return.
BNB is also a governance token on BNB Chain. Holders can vote on changes to be made on the network, thus giving them a stake in the governance of the network. It is also used for several functions on the Binance exchange. It gives holders access to exclusive token sales among other privileges.
BNB has a maximum supply of 145 million tokens, all of which are in circulation. This is because they are pre-mined, and don’t need to be mined. The token also has a burn mechanism through which BNB are sent to an abandoned address to remove some of the tokens from circulation.
Also read:This is a strategy to regulate the supply, which in turn keeps the value of each token high in the long run. BNB is also a popular investment asset that has reached several price milestones over the years.
The relatively small circulating supply makes it a deflationary token and the regular burning makes it even more valuable as the circulating supply is kept low.
What Is Dogecoin (DOGE)?
DOGE is the coin for the Dogecoin network. Dogecoin is a proof-of-work (PoW) network that was created as a joke network for crypto fun. The network was created after the same design as Bitcoin, the first cryptocurrency.
It is known as a meme coin, and it was the first of its kind. Dogecoin was inspired by the popular Shiba Inu dog breed, but was not popular for a while after its launch. With the support of billionaires like Elon Musk, Dogecoin came into limelight and the price of DOGE surged significantly.
Since then, DOGE has been a top cryptocurrency, ranking among the top ten by market capitalization. It has also inspired the creation of more meme cryptocurrencies such as Shiba Inu, named directly after the dog breed.
Despite its growing popularity without any real use case, the team has sought to bring some real life use cases to Dogecoin. One of the top use cases is as a currency for payments at thousands of merchants online.
In fact, Elon Musk’s electric car company Tesla is one of the top companies that accept DOGE as payment for some of its merchandise.
DOGE has a current circulating supply of 145 billion coins, but it doesn’t have a maximum supply. The supply has no cap, and more coins will always be mined. This makes it an inflationary cryptocurrency.
Which Is Better?
If you’re out for fun in the crypto space, Dogecoin is a good place to be. It has been rewarding to investors in the past, making many rich as Elon Musk provided support.
However if you want a long-term investment that is sustainable, BNB is the better choice. It has a lot of use cases and a much smaller supply, which places more value on each token both now and in the future.
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