8 December 2021
In the last few years, investing has evolved into a completely different game. Currently, Meme stocks, Cryptocurrencies, and SPACs have created a dynamic financial environment, which has led to the rise of several billionaires in a short period. Of course, some investors have lost their money by attempting to profit from these "assets". It's quite impossible to tell the difference between the wheat and the chaff because these assets are quite dangerous. However, it's difficult to sit idly and watch so many excellent money-making opportunities pass by without reacting or responding towards it. Dogecoin (DOGE) and Shiba Inu (SHIB) are some of the most popular but unusual Cryptos in the market right now. They appear to be similar on the surface, but they have quite distinct "fundamentals."
DOGE and SHIB are the two dog-themed Cryptos, and they are also known as meme-coins, which means they were inspired by famous social media jokes or "memes'' and did not begin as useful projects. However, these meme-coins are in the Top 15 Cryptos in terms of market capitalization. In addition, the financial theory behind these meme currencies has shifted, making SHIB and DOGE acceptable assets to include in a portfolio.
Both meme-currencies continue to grab headlines amid a sharp spike in interest in Cryptocurrencies. While Dogecoin was innovated in 2013, Shiba Inu is fairly recent, having only been innovated in 2020. Before SHIB was created, many competitors developed an interest in Dogecoin. Thus, it woke up the DOGE fever, attempting to replicate the Dogecoin buzz. The Dogecoin killer- known as the Shiba Inu coin, was established in August 2020 by an anonymous person using the pseudonym "Ryoshi", an ERC-20 token named after the Japanese breed of dog depicted on the currency's emblem. Thus, the SHIB coin has gained a lot of attraction among Chinese dealers who have helped drive up the price. It is similar to DOGE in terms of utility and underlying value in that it can only be used as a transfer token.
Dogecoin Technology :
As you know, Dogecoin is based on the same Blockchain as Bitcoin PoS consensus which is used by both Dogecoin and Bitcoin to verify network transactions. On the other hand, Dogecoin is perhaps a better option for everyday payments than Bitcoin because transactions may be executed faster and for less money, but don't mistake DOGE as being the carbon copy of Bitcoin. It has a far bigger circulating quantity than Bitcoin, and doggy-themed Crypto has no maximum supply. The supply of DOGE is significantly greater than Bitcoin's 21 million limits with over 129 billion in circulation. Furthermore, 10,000 Dogecoins are created every minute as block rewards. Since Dogecoin is a PoW Crypto, just like Bitcoin, it requires computational power to secure its Blockchain. DOGE and Litecoin are merge-mined, meaning anyone mining Litecoin or Dogecoin can also mine the other currency. As a result, its network power is more stable than if it were mined alone.
Shiba Inu's Technology :
Shiba Inu is an Ethereum-based token. Fungible tokens like Shiba Inu are ERC-20 tokens, whereas non-fungible tokens (NFTs) use the ERC-721 tokens. standard. As Ethereum powers it, Shiba Inu can leverage smart contracts to make decentralized financial products.
This year, the DeFi industry has gained a lot more attention with tokens like Uniswap, yearn.finance, and Aave witnessing price and adoption increase. These tokens utilize smart contracts on Ethereum's Blockchain to create decentralized exchanges (DEXs), lending protocols and even interest-bearing accounts.
Shiba Inu has also entered the NFT market with Shiboshis, a collection of 10,000 NFTs inspired by the Shiba Inu character. The decentralized application uses Ethereum's network to allow artists to auction off NFTs with smart contracts replacing the requirement for a third party. ShibaSwap allows investors to stake their Shiba Inu tokens in several ways for big profits. However, this will result in token inflation, which may lead the price to fall. The platform has no evident advantages over its competitors in the field.
Difference between Dogecoin and Shiba Inu:
Just for your additional information, Dogecoin and Shiba Inu aren't the only dog coins available in this Crypto industry. Indeed, Elon Musk's persistent pushing for particular meme coins has resulted in a massive increase in new 'joke' projects, ranging from respectable to absolutely absurd. Shiba Inu and Dogecoin are the two big dogs in the 'meme coin universe'. Both coins are inspired by the Shiba Inu, a smart and popular Japanese hunting dog. They have very little real-world usefulness while software engineers work to improve and expand the existing infrastructure. Dogecoin has a far longer history and a much greater fan following than Shiba Inu, even though currently the gap is closing. To put things in perspective, Dogecoin's subreddit has 2.2 million users while SHIBArmy has around 385,000.
To perform transactions and create new coins, these two coins use a distinct consensus process that is coding algorithms. Although both started as Proof-of-Work (PoW) tokens like Bitcoin, Shiba Inu is based on Ethereum's network and is shifting to a Proof-of-Stake (PoS) model. These days, Proof-of-Stake models are becoming popular due to the negative impact of Cryptocurrency mining on the environment. Dogecoin is rumoured to be considering switching to a PoS system; however, this has yet to be confirmed.
Unlike Shiba, DOGE has its own Blockchain, which is largely based on Bitcoin alternative Litecoin. Dogecoin has primarily been used to donate and tip small sums of money over the internet. This was also Shiba Inu's original goal, but because the coin is based on the Ethereum network, there is more room for growth. For instance, managers of SHIB are developing a decentralized exchange where members of the community may connect, trade currencies, and earn interest on their Cryptos.
Similarities between DOGE & SHIB?
Strong communities and social media presence: due to their low prices and significant community participation, many retail investors support both Dogecoin and Shiba Inu. Both meme coins have a large social media following. With Dogecoin having over two million Twitter followers and Shiba Inu having less than two million. These meme coin groups actively urge their members to acquire tokens and hold them for the long term. The strong social media engagements propelled the two meme coins into the mainstream transforming the public's perception of Cryptocurrency ownership into a game. Because of this, more people joined the communities and bought the tokens. However, users should remember that meme coins are quite volatile and readily manipulated by social media influencers. Thus, if customers want to develop a steady portfolio, they should approach them as short-term investments or avoid them altogether.
Supply: Shiba Inu v/s Dogecoin
Shiba Inu has a capped supply, but even by Crypto standards, it is still quite enormous with 1 quadrillion tokens, to be exact. As a result, neither asset is in short supply. It's worth noting that Vitalik Buterin owns half of the Shiba Inu token supply. He decided to burn 90 percent of it, which totalled 410 trillion tokens valued at roughly $6.7 billion. This drop-in supply could cause the price to skyrocket. Vitalik also gave 50 million tokens to the COVID Crypto Relief Fund in India.
Where to purchase them?
Experts say that you can buy Dogecoin on any Crypto trading platform, including Coinbase, Robinhood, and Kraken. Investors must first download a Crypto wallet to purchase Dogecoin on these marketplaces. In addition, users can mine Dogecoins. Those with a sophisticated computer setup can handle other dogecoin transactions and receive compensation in these currencies. WazirX, on the other hand, allows users to trade Shiba Inu coins. Shiba Inu tokens are also featured on other platforms, including Uniswap and CoinDCX's web versions. Uniswap is an Etehreum-based decentralized exchange (DEX) that allows users to buy and sell Cryptocurrencies in exchange for ETH and other Ethereum-based tokens. However, it should be noted that these coins can be purchased only in USDT/BUSD and not in Indian rupees (INR).
So, which is better: DOGE or SHIB?
Dogecoin and Shiba Inu are both highly speculative investments with market capitalizations significantly over a billion dollars. While the prospect of making quick cash on these dog-themed Cryptos is appealing, keep in mind that you'll be taking on a significant level of risk, like the 'additional part'. If you're less risk cautious but still want to make money, then look around and explore the tokens that currently have successful products available to the general public. Ethereum, Uniswap, and Aave are just a few of the well-known tokens. Therefore, think carefully about which coin is best for you.