“People are YOLOing their life savings on a dog currency“
No. I am not making this up. It’s a legit financial statement used by one of the news anchor a few days ago. It is indeed a crazy world that we live in. When it comes to cryptoverse, this madness just intensifies. We now have a domain of finance which is heavily influenced by Gen-Zs and the euphoria related to it is just magnetic. Looking for some FOMO vibes? You are in the right place. Dogecoin Vs Shiba Inu. What to buy?
Today, we compare two cryptocurrencies that may not have found any place in this space if world wasn’t the way it is today. Every cryptocurrency is generally backed by some solid use case;
For Ex. Bitcoin is the world’s first peer to peer cash transaction system.
Ethereum is a shared platform for development of decentralized apps and smart contracts.
Likewise, Doge Coin and Shiba Inu- Our heroes for the day, are meme coins. Yes you heard it right. These coins are usually deriving it’s value from the community and hype.
The relatively younger cousin Shiba Inu (Founded in August, 2020) markets itself as the Doge Killer (Founded in December 2013).
But hey, enough judging for the day. Today, we talk about these two coins and understand the pros and cons of investing in either of them and try to reach a logical conclusion by comparing them on multiple parameters.
Market capitalization or market cap in short is the indicator of size of a cryptocurrency. It is derived by multiplying the current price of coin with total circulation of the coin at any given point.
As I am writing this article, the market cap of Dogecoin ($DOGE) is ₹2,891,646,987,155 and Shiba Inu ($SHIB) is ₹236,776,635,643. If you are concerned with these gigantic figures, let me tell you quick secret. Unlike Bitcoin, these coins aren’t capped at 21mn. Doge coin has no maximum supply which means it is an inflationary asset. On the contrary, Shiba Inu does have a maximum supply but it is a hefty 1 quadrillion. This is the highest supply any coin has in the crypto market.
Dogecoin was founded by two engineers namely Billy Markus and Jackson Palmer. The intention of the currency was to mock the crypto ecosystem by proving that any one could create a cryptocurrency and it had no real value. Additionally, the wanted to create a crypto that can part ways with the image of Bitcoin being used by underworld mafia for criminal activities.
Dogecoin has an impressive family tree.
Her great-grandmother is none other than Bitcoin! Let me explain how. Dogecoin is based on Luckycoin, which is a fork of Litecoin, which is a fork of… you guessed it – Bitcoin.
Shiba Inu Coin’s creator goes by the name Ryoshi, but very little else is known about the mystery cryptocurrency founder. Similar to the founder of bitcoin – Satoshi Nakamoto – they remain anonymous. This cryptocurrency is based on the Ethereum blockchain.
Dogecoins are produced by mining. Miners are rewarded with 10,000 DOGE per block, and one block is mined every minute.
This means that 10,000 DOGE are created every minute. Compare that with Bitcoin’s current creation rate of 6.25 per 10 minutes, and you will understand why DOGE prices are less than a dollar!
On the other hand, the total SHIB supply was minted when the project launched, so the token can’t be mined.
All time High:
ATH or all time high of these coins will give you an instant FOMO attack. I would recommend that you catch hold of a nearby chair and sit down if you aren’t already.
- For a very long period since inception, Doge was trading below Re. 1 apiece until February 7th, 2021 where it made a high of Rs. 5 due to a lot of noise around this in reddit after the Gamestop Saga happened.
- Soon after, it caught the attention of Elon Musk and he started tweeting about it which led to an insane rally leading to an all time high of Rs. 54.84 on May 8th, 2021. Yes. That’s a whopping 56x return for someone who entered in January.
- Our other pupper $SHIB, isn’t less either. Within 9 months of it’s inception, the coin gave a return of 509324% by forming a high of ₹0.002885 on May 10th, 2021.
- $SHIB picked up mainly when it got listed on Binance. Yet again, Elon Musk had it’s back for brief period.
Pros and Cons:
|Pros (+)||Cons (-)|
|At a blockchain level, Dogecoin is pretty decent in terms of incorporating all the benefits inherited from the underlying technology. It enables fast and secure transfer of money, censorship resistant and decentralized in nature.||There is no underlying use case for this cryptocurrency. It was meant to be a joke and it had maintained that vibe even after hitting a market cap of monumental levels.|
|Apart from that, it has a very loyal and unique set of adopters. Therefore, from a community standpoint, it is a strong coin.||It is an inflationary asset as per the current scheme of things.|
|Pros (+)||Cons (-)|
|Shiba Inu has a white paper that details out the future plans for this crypto. It is expected that SHIB will venture into decentralized apps or dapps eventually.||It has a non first mover advantage in meme coin space. A lot of meme coins have already tried to make their mark in this domain and SHIB is just another example of that.|
|Investing in Shiba Inu is very cheap right now. With a piece costing about ₹0.0006 as I am writing this post, it can be a good entry point for someone new to crypto.||Unlike Doge, SHIB isn’t an independent blockchain. Therefore, if by any chance, anything goes wrong with ETH, SHIB will have to bear the consequences.|
When you are dealing with a social currency, it is imperative that famous personalities have some skin in your game. And our cryptos for the day have done just that:
Doge Coin has immense support of billionaires like Elon Musk, Mark Cuban. Elon Musk has made numerous tweets on this topic. He has gone to the extent saying that if someone tries to dump doge he would be buying to maintain the sanctity of the market.
He also has mentioned in open forums that it’d be fun to watch a cryptocurrency that was meant to be a joke to beat the one that was meant to be the real alternate currency.
Coming to the spinoff version- $SHIB. It came to the global spotlight when Ethereum founder Vitalik Buterin donated 50 trillion shiba inu tokens worth around $1 billion at one point to a crypto-based COVID-19 relief fund for India in May – and burned 90% of his holdings just days later.
The team behind Shiba Inu updated the woof paper and mentioned that a part of the tokens is being given to a friend- Vitalik Buterin. A lot of people were also made to believe that Vitalik is a partner in this project.
Apart from that, it was rumored that Shiba Inu is going to partner with Jeff Bezo’s Amazon. However, that hasn’t come to fruition yet.
So, what’s your pick? Not a financial advice but the social parameters of Doge are much stronger than Shiba Inu. However, when it comes to real use case, none of them have any.
Share your opinion with me.
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Until next time..
Psst.. Struggling to save money?
I just managed to save Rs. 10,000 by investing my ‘Chillar (Change)’ in mutual funds. Investing amounts like Rs. 5, 8, 25, 45.. and 4 months later, Boom! I have 10 grand to spare. Interested in knowing how I did it? Read more here.
On a side note, I use CoinMarketCap for all my crypto related research. You can access it through multiple modes. Sharing the links below:
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