CoinMarketCap.com tracks over 28 million different cryptocurrencies. In this vast ocean of digital assets, Bitcoin (BTC +0.76%) and Dogecoin (DOGE +0.18%) 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

For long-term investors, Bitcoin is the better option. 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, arguably its greatest characteristic. By contrast, Dogecoin has no fixed cap and adds new coins each year, which can dilute the holdings of existing owners over time, even though its inflation rate tends to decline as the supply grows.

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.

Bitcoin

Today’s Change

(0.76%) $668.50

Current Price

$88218.00

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 outperform Dogecoin significantly.