Dogecoin and Shiba Inu have captured many crypto headlines over the last few years, as some have become millionaires overnight. However, deciding on buying Shiba Inu vs. Dogecoin isn’t as straightforward as one might think. Before you begin trading Dogecoin, you must know a few things about it. While the future is a bit unknown, having a structural understanding of the coin and the network makes sense.
What is Dogecoin, and how does it work?
Dogecoin is a cryptocurrency used for payments and purchases but hasn’t been able to hold value. It has had a volatile couple of years, as it is the original “meme coin” and launched the idea of dog coins, Shiba Inu included. Originally started as a joke, it was a hard fork from the Bitcoin project by a couple of friends. However, it began to gain traction on social media, and a star was born. The coin tends to rise and fall with the rest of crypto, but it also has its own “fans” online that believe in the community-building project.
Advantages of Dogecoin
One of the biggest appeals of Dogecoin is that it is cheap. This tends to attract much retail trading, as it is psychologically easier to pay a few dimes for something than it is to spend thousands of dollars for a Bitcoin, for example. Most traders don’t think in percentages, so the dollar amount tends to influence much behavior.
The other advantage is that 10,000 Dogecoin is mined each minute, meaning it is very easy to mine. That makes the idea of mining much simpler. It has a shallow barrier to entry. Beyond all of that, Elon Musk has been a big proponent of Dogecoin via Twitter. He has even flirted with taking DOGE as a form of payment for Tesla cars.
Disadvantages of Dogecoin
The disadvantages of Dogecoin are numerous. The ease of mining Dogecoin makes it less valuable. The reality is that there is an unlimited amount of DOGE available for production, so scarcity will never be a catalyst. Furthermore, crypto has lost its appeal over the last year, so one must wonder what it will take to drive “meme coins” higher.
Shiba Inu: The basics
The coin Shina Inu is similar to Dogecoin, but you must understand a few things if you choose to trade it. Shiba Inu (SHIB) is a cryptocurrency people use to make payments and purchases. The coin was created in August 2020 and boasted the moniker “Dogecoin killer.” However, it remains a much smaller market by market cap.
Advantages of Shiba Inu
Shiba Inu has a limited number of coins that can ever be made, but it is a massive number – 1 quadrillion. In theory, this can lead to scarcity, but the number is so significant that it might as well be “unlimited.” Shiba Inu is divided into multiple tokens to help the ecosystem function. This includes SHIB, the currency that is used as a medium of exchange; LEASH, which provides staking rewards for those who validate transactions in the cryptocurrency; and BONE, which is a coin that allows holders to vote on various proposals for the network.
The ShibaSwap platform is a native decentralized exchange that allows for various rewards for helping to facilitate trades in a peer-to-peer network.
Disadvantages of Shiba Inu
There are many disadvantages of Shiba Inu. The first is going to be that it isn’t used for more than speculation, as it hasn’t caught on in the real world. Originally thought of to make microtransactions, the reality is that the market is used to speculate on the latest social media hype. The other major disadvantage of SHIB is that the network tends to be slower, as it sits on top of the Ethereum network.
Critical differences between Dogecoin and Shiba Inu
To differentiate between the two coins and place meaningful trades, you should understand some critical distinctions between Dogecoin and Shiba Inu. Below are some of the more prominent points to consider.
Since the inception of both coins, Dogecoin has always been worth more. That will probably continue to be the case as it is a much more widely followed coin. Ironically, it also has unlimited coins, which comes into play under normal circumstances, except against a coin like Shiba Inu. It has one quadrillion as its limit, almost the same as saying unlimited.
These coins move in the same direction over time, though, as they are both considered “meme coins,” Therefore, it’s not so much about adaptability as it is about playing the game of trading.
Dogecoin was introduced in 2013 by Billy Markus and Jackson Palmer. They decided to make a payment system as a joke, making fun of the wild speculation in cryptocurrencies at the time. It’s considered a “meme coin,” and it features the face of a Shiba Inu dog from the “Doge” meme.
Dogecoin is based on the same protocol as existing cryptocurrencies like Litecoin, a fork from the Bitcoin ecosystem. The value of Dogecoin and its use as a trading instrument has swung wildly as traders pay attention to social media means and influencers like Elon Musk. There was even a TikTok trend to try to make Dogecoin hit the $1.00 level. It has gotten hammered along with the rest of crypto in the latest bubble popping. It is meant to be used as a payment system, and some places and/or businesses will accept it as a form of payment.
Shiba Inu was developed by an anonymous person and is named after the Japanese dog breed. It is a “meme coin” and has been accused of being a pump-and-up scheme. There is a single “whale” wallet controlling billions of dollars worth of the token; therefore, many red flags have been raised.
However, there have been significant strides to make Shiba Inu more “mainstream,” as there has been the ability to stake and participate in the DeFi ecosystem. Of course, some people will take it as a form of micro-payment. It can carry smart contracts as it is built on top of the Ethereum network. In other words, it is still too early to suggest that perhaps Shiba Inu has no real purpose.
While not necessarily a significant difference in practical scarcity, it’s probably worth noting that Shiba Inu has a limit of one quadrillion coins. At the same time, the maximum supply of Dogecoin is unlimited. That being said, for all practical purposes, you might assume that Shiba Inu is also unlimited.
What Makes Shiba Inu and Dogecoin Similar?
While there are some differences between the coins, you should also recognize their similarities when evaluating Dogecoin vs. Shina Inu.
- Meme coins. These are called “meme coins,” meaning they are essentially jokes. That’s not to say that they don’t have any value, because clearly, they do, but you should not be looking for these coins to take over Bitcoin as an example. Keep in mind that both of these coins will be heavily influenced by social media.
- Less Energy. Both of these networks use less energy than Bitcoin, with Shiba Inu being more efficient than Dogecoin. However, Dogecoin is built off of Litecoin, a more efficient Bitcoin network fork.
- Staking. Both coins can be staked, but it should be noted that Dogecoin is done through a third party, such as an exchange, while Shiba Inu can be staked as a validator.
Shiba Inu vs. Dogecoin: Comparison
To better understand the two coins, take a look at the chart below:
|Date Founded||December 2013||August 2020|
|Market Cap||$12.13 billion||$5.13 billion|
|General Purpose||Validate transactions on the network and secure the network.||It can be used as a currency.|
|Maximum Available Supply||None.||One quadrillion|
|How Is the Currency Used?||Payments.||As payment, also, it can facilitate smart contracts.|
|What Influences the Value?||Dogecoin is a meme coin and solely relies on hype.||It’s a meme coin. It’s sensitive to social media.|
The historical price actions of Shiba Inu and Dogecoin are very similar. They both have been pumped higher from social media influencers, memes, and a handful of other random and noisy factors. Most of the time when people are talking ab out Dogecoin vs. Shiba Inu, it is centered around groups arguing online, as they are “community tokens.”
Shiba Inu is a market that has seen much pressure in both directions and even spiked higher in 2021, along with other cryptocurrencies. Shiba Inu hit a high price of $0.00007606 before falling too much lower levels. Shiba Inu was one of the first markets to get crushed by the lack of enthusiasm for crypto. SHIB has dropped to $0.00000898 at the time of writing.
Dogecoin wasn’t immune from the crypto selling either. Dogecoin rallied to $0.4461 during the last crypto bubble, as anything related to the blockchain was bought. The Hype surrounding crypto has transferred its bullish behavior to DOGE.
Dogecoin vs. Shiba Inu: Which is the better investment?
They will more likely than not follow each other. After all, they are both “meme coins,” and the same things influence them. The “hype” around each coin is the driver, but it is probably worth mentioning that Dogecoin was the initial dog coin, so there is the “leading factor” that could be fixed into the price. However, you can also claim that the limited, albeit a quadrillion, nature of Shiba Inu could make it more attractive. In other words, you are likely to see similar results between the two, but Dogecoin has a more extensive community.
The argument between the two coins has been fun to watch online, but the reality is that neither of these coins is likely to have a longer-term move toward mainstream adoption. The coins are driven by hype and social media, assuming a genuine desire to push them higher in value. As crypto has been hammered from all-time highs, these coins will continue to suffer. The questions now will revolve around whether people will be willing to speculate on crypto again.
Also, the risk appetite continues to be in a range when it comes to crypto. You will need to see Bitcoin start to strengthen again, which would be followed by Ethereum. It isn’t until the animal spirits come back to the markets that people will be willing to buy into these “cheap coins.”
Neither of these coins can truly take off in the future. Crypto and blockchain are very young, and numerous unforeseen obstacles are ahead. The odds are against either of these coins gaining widespread adoption, but they can be used as a highly speculative asset. Dogecoin or Shiba Inu? It’s probably going to have to do with timing more than anything. After all, the coins are purely based on hype. Keep in mind the whole “SHIB vs. DOGE debate” will often come down to whatever coin Elon Musk is Tweeting about. In other words, there is a lot of noise in this debate, especially considering they tend to move in the same overall direction.
FAQ: Frequently Asked Questions
- Is Dogecoin better than Shiba Inu? It is the original “dog meme coin.” However, there is no limit to how many can be produced, so being “better” than Shiba Inu is a relative question. Neither is likely to have substantial use case scenarios but could be speculated on. The “DOGE vs SHIB” argument is about tribes online arguing. Neither will more than likely have a lasting impact on finance.
- Will Dogecoin or Shiba go up? Both may go up someday, but most of what drove the price were hype, which generally happens when the markets are in a bubble. If the rest of the crypto market rises, these will increase. However, considering recent struggles for cryptocurrency, the odds are still working against Dogecoin and Shiba Inu.