Digg doesn't have anything that Reddit doesn't, and thats OK
First off, it has to be mentioned that this is super early days. We're less than a week into public beta. Obviously the community isn't very big or stable, and a lot of features are missing. Spam isn't under control yet. I also think that community rollout was fumbled a bit. But this is the first Reddit alternative that I know of to have this level of experienced and connected backers, with Alexis Ohanian and Kevin Rose.
Maybe Digg never approaches Reddit in size, maybe it flops, maybe it evolves into something different from Reddit entirely, maybe it becomes Reddit but bigger and eviler. Who knows. But I believe that Digg has the best shot of giving Reddit at least some healthy competition, so I'm putting at least an egg or two in this basket.
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