Do any of the dog coins have solid fundamentals? That's a question often asked by investors buying bitcoins and other coins that aim to change the
|Dogecoin Vs Shiba Inu|
Doge Vs Shiba Inu, Where to Invest in 2021?
Do any of the dog coins have solid fundamentals? That's a question often asked by investors buying bitcoins and other coins that aim to change the financial system as we know it.
And while dog-themed coins are pretty worthless, they have seen massive growth in popularity, adoption, and price. The "why" is irrelevant, since anything goes in bull markets. So where should you invest for a quick profit? Let's take a look at the two most popular options.
Doge Vs Shiba Inu, Which Option Is Best in 2021?
- Doge vs Shiba Inu - Analyzing both options
- Coin issuance
- Community growth
- Sponsors and supporters
- Retail interest
- Learning from history
- Which is the best option?
Doge vs Shiba Inu - Analyzing both options
Let's look at various aspects to better understand which currency is best to invest in.
Doge creates 10,000 new coins per block, with each block taking about a minute to fill. This increases the total supply by 14,000,000 per day, making the repetitive pumps that we have seen in the past unsustainable. Read more about it here.
Shiba Inu, on the other hand, does not follow a PoW protocol. As an ERC-20 token, it aims to focus on PoS and does not issue more coins than those already on the market (Read more here). Vitalik Buterin recently dumped his share of SHIB, which amounted to 50% of the total supply, leaving around 394 trillion tokens available on the market. While the number of coins is significantly higher, the tokenomy suggests that SHIB could have a better chance of profitability for new investors as no new coins come into circulation.
Dogecoin was primarily built as a joke and was treated as such for the longest time. The community it has managed to build is simply focused on two things: the ability of the coin to remain relevant for such a long period of time, and the fact that it is the cheapest coin in the top 10. Therefore, it is highly speculative and is geared towards retail. . That said, your community has seen tremendous growth over the past year thanks to the promotion of celebrities, all of which we will discuss in the next chapter.
Shiba Inu was practically unknown about a year ago and only grew in popularity when retailers and Twitter marauders discovered it as a second chance for profit, alongside the massive success of Dogecoin. Many investors overlooked the 13,000% surge that Dogecoin experienced in the past 5 months, and now everyone is hoping to see Shiba do the same, given the recent news and exchange charts.
Sponsors and supporters
Dogecoin has managed to accumulate many high profile followers and many are wondering if it is the result of a joke or real and genuine interest. The most popular example here is Elon Musk, founder of Tesla and SpaceX, who has been actively promoting cryptocurrency online, prompting a host of celebrities to follow the trend and do the same as well.
Shiba Inu does not really have high-esteemed supporters that can influence its price direction. However, half of the tokens were sent to Vitalik Buterin, who wrote a letter about SHIB investors before giving a portion of them away to charity. The announcement was seen as bullish for SHIB investors and many believe that the news has not yet been priced in.
Retail interest appears to be the same with both tokens at the moment, as new investors are not very focused on the fundamental strengths and history of the coins. Instead, they focus more on price, price growth potential, and accessibility on exchanges.
Learning from history
Dogecoin was created as a joke and was never expected to grow as big as it has. Shiba Inu, on the other hand, was created to support a community that felt left out. It was used massively for charity and the headlines have been praised as such. When we look at history, we find that many currencies have "popped up" out of nowhere to grow rapidly in periods of bull markets. This means that we cannot leave SHIB out of this comparison simply because of its "youth" compared to the established DOGE.
Which is the best option?
If you are reading this, you have probably invested in one or both of the Dog coins, expecting cryptocurrency prices to increase over time. And while the currencies are not fundamentally strong, they present significant potential for those who know where to look. In our opinion:
DOGE is ideal for people looking for less risk in the altcoin market while altering their expectations. Its large market capitalization and position make it an excellent choice for those looking for small risks versus small rewards.
SHIB is a wild bet with many short-term opportunities. With only 1/6 of the market capitalization of those formed, there is a realistic chance that we will see the two compete one-on-one at the top of this bull market. Therefore, it offers many profit opportunities for those who are willing to bear the risk involved.
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