Should You Forget Bitcoin and Buy Dogecoin Instead?

Bitcoin (CRYPTO: BTC) was the first cryptocurrency to launch nearly two decades ago. Due to its meteoric rise, with its price having climbed 17,380% over the past 10 years (as of May 22), it has come to dominate the industry. Naturally, it's probably the first digital asset that comes to mind for investors.

Dogecoin (CRYPTO: DOGE) is also one of the founding fathers of the industry. Its price has skyrocketed 45,790% in the last decade. But it's significantly smaller than Bitcoin, so investors might think that it has much greater upside.

Should you forget the world's leading cryptocurrency and buy the meme token instead? Here's the truth for investors.

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On opposite ends of the spectrum

At a high level, these two digital assets sit at opposite ends of the crypto economy spectrum.

Dogecoin is representative of the gambling nature of these market participants. Its hype-driven price swings point to this. However, it's notable that the blockchain commands a $17.7 billion market cap, which is more than Lululemon's market cap.

As far as utility, however, Dogecoin isn't turning any heads. It has minimal acceptance from merchants as a method of payment. And it has only 15 full-time developers working on the network (88th on the list of top 100 blockchains), which doesn't bode well for its ability to introduce useful features.

On the other hand, Bitcoin represents true innovation within the world of cryptocurrencies specifically and finance more broadly. As a scarce monetary asset that aims to underpin a novel financial system free from never-ending fiat currency debasement, this digital asset is a promising development. Its market cap of $1.5 trillion accounts for 60% of the entire crypto industry.

Stick to the proven winner

Dogecoin might be the better choice for speculators looking to cash in on a quick price jump. But the superior option for long-term investors looking to grow their wealth is obvious: It's Bitcoin.

Bitcoin is ripe for investor capital since it trades 38% below its peak. Historically, it has always bounced back from lows to reach new highs. I don't believe this time will be any different.

From a fundamental perspective, Bitcoin is in solid shape. The underlying network has never been hacked, as it continues to produce block after block to process transactions. It's being integrated into traditional finance, with payments solutions and investment vehicles. And there's proposed legislation that suggests the U.S. government start to actively purchase Bitcoin. These are all powerful tailwinds.

It might be tempting for some, but investors definitely should not forget Bitcoin and buy Dogecoin instead. That would be a mistake.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Lululemon Athletica Inc. The Motley Fool has a disclosure policy.