Coinmarketcap.com tracks over 28 million of the different cryptocurrencies out there. In this vast ocean of digital assets, Bitcoin (BTC 0.29%) and Dogecoin (DOGE +0.32%) are two of the most well-known blockchain networks on the face of the planet. They have both performed well for investors, although the dog-themed meme token has a much better trailing five-year return.
Of these two, which one's the better long-term play?
Image source: Getty Images.
The winner is strikingly clear
The best option for long-term investors is, without question, Bitcoin. Its market cap of $1.7 trillion represents more than 50% of the entire industry, which supports incredible name recognition, liquidity, and network effects. Bitcoin also has a fixed supply cap of 21 million units, its greatest characteristic, while Dogecoin's supply can keep expanding forever.
Investors might also be shifting their attention away from Dogecoin. Its price currently trades 82% below its peak (as of Dec. 16). Bitcoin has been under pressure in recent months, but it has historically always been able to reach new highs.
CRYPTO: BTC
Key Data Points
Bitcoin is a popular investment asset
Bitcoin has become a legitimate global financial asset that has steadily attracted capital. These days, it's drawing the attention of traditional financial institutions, asset managers, corporations, and governments. As it slowly gets integrated into the economy, it becomes less risky to own.
Looking out five years and beyond, Bitcoin is poised to do much better than Dogecoin.
