Every crypto trader should be able to tell the difference between Shiba Inu (SHIB) and Bitcoin (BTC). These projects differ in many ways and cater to different types of crypto users. Here’s everything you need to know about Shiba Inu Vs. Bitcoin.
What is the Shiba Inu?
Shiba Inu entered the market in 2020 following a host of controversies surrounding a group of Redditors and Game actions. The project entered the market as “…decentralized spontaneous community building experienceaccording to its developers. Notably, Shiba Inu follows in the footsteps of other meme pieces.
Meme coins are cryptocurrencies that leverage popular cultural elements to enhance their recognizability and overall marketability. Shiba Inu borrows many aspects from Dogecoin in terms of market approach, with the protocol using the same Shiba Inu meme that helped make Dogecoin one of the best meme coins of all time.
The Shiba Inu project was started by a group of anonymous developers. They dubbed the room the “Dogecoin Killer” because of some of its unique aspects. For one thing, Shiba Inu only cost a fraction of a penny. This low cost structure was designed to provide normal traders with the opportunity to own millions of tokens at an affordable price.
The concept behind Shiba Inu is interesting, as the developers want to leverage the massive buying power of large e-commerce groups to drive up the value of SHIB. With each SHIB costing only fractions of a penny, the developers hope to push that value to $1 someday. If successful, those who hold a million SHIBs today could become millionaires tomorrow.
Of course, this approach is speculative. It’s completely new to the market, which is one of the reasons the developers called the project experimental.
Another interesting thing about Shiba Inu is their release strategy. The project sent 202 trillion SHIB to Ethereum co-founder Vitalik Buterin as a show of good faith. They had hoped that the famous crypto star would hold the tokens to add validity to the project. However, Buterin quickly donated the funds to a COVID relief campaign. In total, the funds were worth around $2 billion when transferred. However, as the agency needed to sell the tokens to take advantage of the bounty, it flooded the market with these tokens causing the price to drop by 50% in its debut.
What is bitcoin?
Bitcoin operates as the world’s largest and first successful proof-of-work network. The protocol was developed by an anonymous developer who goes by the pseudonym Satoshi Nakamoto 13 years ago. Since its launch, Bitcoin has revolutionized the financial industry.
Bitcoin has demonstrated the power of cryptocurrencies and their effectiveness. The success of the protocol has led to the creation of an entire crypto market. Today, the crypto market has reached trillions in value. Bitcoin hit an all-time high of +$60,000 and is now legal tender in several countries around the world.
Bitcoin can be described as a “peer-to-peer electronic payment systemaccording to Nakamoto’s famous white paper. To this day, it remains the dominant force in the market, despite lacking many of the features offered by today’s advanced DeFi protocols.
What problems was Shiba Inu designed to alleviate?
There are many different problems that SHIB was designed to solve. On the one hand, it aimed to allow the average trader to own millions of digital assets. This speculative angle has helped the token’s adoption by attracting new investors to the market.
The Shiba Inu’s light-hearted approach is another reason it’s so popular. While most cryptocurrencies today are all commercial, Shiba Inu reminds people that it’s okay to laugh when making money.
The protocol was also designed to help combat centralization. The meme coin market has been dominated by Dogecoin for years. Shiba Inu wanted to offer these users alternatives that offered more features and services. As such, SHIB supports all DeFi capabilities, including staking.
What problems was Bitcoin designed to alleviate?
Bitcoin was designed to provide the world with a better alternative to the centralized financial system. It replaces the core banking process with a decentralized network of nodes that share the profits generated from the fees. The token demonstrated the reliability and overall efficiency of blockchain technology to the world.
How does the Shiba Inu work?
Shiba Inu operates as a Proof-of-Stake (PoS) network built on the Ethereum blockchain. The protocol is fully ERC20 compliant, which means token holders can take advantage of the wide range of Ethereum tools and services available to the masses. Here are some of its key components.
The ShibSwap exchange is a decentralized exchange (DEX) that allows traders to secure returns through trading. This noncustodial platform is open for registration and offers lower fees than most centralized exchanges (CEX) in operation today.
SHIB is the protocol’s main utility token. Users must hold SHIB to participate in network features such as staking. SHIB was launched without a pre-mine, and the developers chose not to hold any of these tokens based on their releases. There were 100 billion SHIB issued at the start of the project.
How does bitcoin work?
Bitcoin operates as the world’s first proof-of-work protocol. The network operates participants called nodes or miners that compete with each other to verify transactions. Notably, all miners verify the transactions but only one receives the reward. This strategy ensures that the state of the blockchain remains consistent and secure. When the network launched, Nakamoto mined around 1 million BTC. These tokens have remained intact since that time.
How to buy Shiba Inu (SHIB) and Bitcoin (BTC)
Bitstamp – Founded in 2011, Bitstamp is one of the oldest and most trusted exchanges in the world. This exchange currently accepts residents of Canada, the United Kingdom and the United States excluding the states of Alabama, Hawaii, Idaho, Louisiana, Nevada and New Jersey.
Hold – This is one of the best trades for US and UK residents which offers a wide range of cryptocurrencies. Germany and the Netherlands are prohibited.
Respect the disclaimer: Assets available on Uphold are subject to region. All investments and transactions are risky and may result in loss of capital. Crypto-assets are largely unregulated and therefore unprotected.
Binance- Ideal for Australia, Canada, Singapore, UK and most of the world. US residents are prohibited to buy most of the tokens. Use the discount code: EE59L0QP for 10% cashback on all trading fees.
Shiba Inu vs. Bitcoin
It only takes a few seconds to see the major difference between Shiba Inu and Bitcoin. These projects have different objectives and different strategies that make them worlds apart. In terms of the best addition to your portfolio, Bitcoin is the clear winner for long-term returns, although SHIB has growth potential in the years to come.
For more, be sure to check out our Investing in Shiba Inu and Investing in Bitcoin guides.