Anytime you are looking to invest in cryptocurrency, it also helps to find and analyze any competitors. in a Dogecoin (CRYPTO: DOGE), this means to find cryptocurrencies that are mostly used to make payments, such as ripple (CRYPTO: XRP). So here’s what to consider if you’re wondering which cryptocurrency is the best to buy in 2022.
At the moment, there are more than 16,000 tokens and coins in existence. Not every cryptocurrency is created for the same purpose. Some are used strictly for making payments, while others are used to pay for transactions on the blockchain, such as investing in a DeFi project.
Therefore, it is important that you understand what you are buying and what are the primary use cases for it. Just like when analyzing stocks, you want to know what the business is doing. It is the same when investing in cryptocurrencies.
And since we know that Dogecoin is mainly used as a digital currency to make payments, we can now analyze all the other competitors of Dogecoin, and one of the biggest of these is Ripple.
If you are looking to invest in a cryptocurrency in 2022 that can grow exponentially in the long run, as investors demand more digital currencies, here is the best buy between Dogecoin and Ripple.
Is Dogecoin Worth a Long-Term Investment?
There are a few reasons why many investors agree that Dogecoin is not the best long-term investment. First, and most importantly, its technology is nothing special. In fact, the Proof of Work (PoW) algorithm it uses to validate transactions is known to consume more power than the Proof of Stake model, which is why many other cryptocurrencies using this newer technology are gaining in popularity.
Dogecoin’s ancient technology should come as no surprise. After all, Dogecoin was created years ago, before some of the industry’s biggest technological improvements were made. Moreover, it was created as a joke. So, there are definitely cryptocurrencies made for a purpose that have a lot of potential in the long run to see mainstream adoption.
However , Bitcoin (CRYPTO: BTC) also uses Proof of Work technology. While cryptocurrency technology is important, it is not the only factor determining success.
One of the advantages of Dogecoin is that you can spend it at more than 1900 companies. This means that only four more cryptocurrencies can be spent in more companies. And Ripple, one of Dogecoin’s main competitors, is lower on the list, with over 1,500 companies accepting XRP as payment.
Without many other use cases, one of the biggest factors in determining its value is the number of places you can spend on Dogecoin. Often when you see a new business announcing that they will accept Dogecoin, you can soon see a rise in the price.
However, the fact that supply is unlimited, and the fact that it has been in a major downtrend for several months shows that it is not really a great store of value. In addition, Dogecoin is known to be one of the most speculative cryptocurrencies by investors, which can make it extremely volatile.
So, if you are looking for a cryptocurrency for payments, in my opinion, you can do a better job, and one of these currencies is Ripple.
Why Ripple is a better cryptocurrency to buy than DOGE in 2022
The two main reasons Dogecoin doesn’t offer as much long-term potential as Ripple is because of its Proof of Work algorithm and unlimited supply. So, if there is only one of these cryptocurrencies to buy in the long run, I will have to pick XRP.
However, one of the main risks to Ripple, the company that created the XRP token, is that the company is currently being sued by the US Securities and Exchange Commission. The SEC accuses Ripple of selling its tokens to investors through an unregistered offering.
So, if you are optimistic about Ripple as one of the best cryptocurrencies to buy in 2022, this is a risk to keep in mind.
While the two are not perfect competitors, they are primarily used as digital currencies to make payments. If I had to pick one cryptocurrency to buy and hold for the long term, then in my view, Ripple offers much more potential.