Dogecoin (DOGE) duplicate Shiba Inu (SHIB) ranked among the top 10 cryptocurrencies by market capitalization this week. Both are almost paw to paw on cryptographic scales, although SHIB has just overtaken DOGE.
Let’s delve into comparing the two cryptocurrencies and find out why everyone is barking and not having a bite.
One email a day can help you save thousands
Expert tips and tricks delivered straight to your inbox that can help you save thousands of dollars. Sign up now for free access to our personal financial Boot Camp.
Dogecoin vs. Shiba Inu
What Dogecoin and Shiba Inu have in common that they are both based on a small bear-like breed of Japanese dog. Both have loyal fan communities backed by a culture of light-hearted memes and active social media channels.
Unfortunately, none have much usability in the real world. You can use both to pay for certain things, and Shiba Inu has a decentralized exchange called ShibaSwap (which is mostly useful for creating multiple tokens associated with SHIB). But the lack of functionality did not prevent them from taking over the cryptoworld. Each has a similar market capitalization as a large multinational company.
Here’s how they stack:
Dogecoin was originally set up as a joke designed to ridicule the way people invest in cryptocurrencies they didn’t understand. To the surprise of many, the coin attracted quite a few followers. New investors have found that a not-too-serious approach is easier to use than other more serious cryptocurrencies, and the Dogecoin community has flourished.
The founders withdrew from the project in 2015 due to concerns that Dogecoin attracted too many unpleasant signs. But the lack of leadership did not deter investors. Recently, in August, it was re-established the Dogecoin Foundation who has some heavy blows on board and has set out a strategic plan for the future.
It remains to be seen whether Dogecoin can successfully move into a serious project or whether becoming more mainstream will take away some of its charm. But at least there’s a chance Doge can take advantage of its incredible popularity and build a reputation as a viable digital payment. Given its high market capitalization and competitiveness digital payment in the market, this is still not necessarily a good investment. But this is the beginning.
O Shiba Inu
Shiba Inu uses much of the same language as Dogecoin, but was not created for entertainment – it was created to build on the success of Dogecoin and make money. Not only does it have an anonymous founder who should be a red flag in any investment, but there are also a few things about the coin that just don’t sound right.
The project, for example, talks about wanting to help Shiba Inu rescue centers, but not a cent from Shiba Inu activities is about helping dogs in need. Instead, the Shiba Inu website simply encourages people to donate through Amazon Smile.
Similarly, Shiba Inu’s white paper devotes an entire page to the founder of Ethereum (ETH). Vitalik Buterin and his decision to donate $ 1 billion to SHIB to the Indian Fund to assist COVID. Shiba Inu presents Buterin as “Shiba’s friend,” having previously given the crypto legend 50% of his chips as a marketing ploy.
But Buterin isn’t thrilled with these unsolicited coin gifts – he says he doesn’t want responsibility. I don’t blame SHIB for trying to turn the situation around the best, but as an investment, there are too many things in their publicity that don’t match.
There are better investments
We are in the middle of a house frenzy of the coin, and people buy anything from Doge, Shibo or Inu on behalf. The success of Dogecoin and Shiba Inu means that people treat these coins as a kind of crypto lottery ticket. And given how easy it is to create a coin and spin a dog-related story (with limited regulations to ensure the story is true), it floods more Dogecoin knock-offs cryptocurrency exchanges everyday.
I understand why you might want to invest in cryptocurrencies like Shiba Inu and Dogecoin. Stories of huge potential returns are extremely tempting. And certainly some made money. But people get money in Las Vegas and because of that, gambling is not a good investment.
The problem is that if you are investing in a cryptocurrency that has no fundamental utility, all you are doing is hoping that someone else from you will buy it back for more. The price may continue to rise, but it can also easily fall for no reason – and if you buy at a high level, you will lose money.
Better bet? Instead of short-term gains, look for coins that could create long-term wealth. Focus on cryptocurrencies that have a purpose and a management team that you trust. Take the time to understand what blockchain technology can make and weigh the pros and cons of investing in a crypto compared to other types of investments. The desire to make your money work for you through investment is commendable and there are various lower risk pathways along which you can achieve your goals.