Connect with us

Cryptocurrency

is The Shiba inu coin a good investment in 2022? Pros & Cons Explained!

Published

on

Is Shiba Inu Coin A Good Investment In 2022?

Shiba Inu is one of the most popular alternative meme coins on the market, and it’s been gaining a lot of traction recently (SHIB). But, more significantly, what has happened to this coin recently, and what will happen to it? Is it possible to forecast the price of Shiba Inu coins? Let’s look at what’s being stated regarding SHIB’s future and the price of the Shiba Inu coin and then finally come to the conclusion whether Is Shiba Inu Coin a Good Investment.

A Quick & Short Answer: Is Shiba Inu Coin a Good Investment?

Possibly. Its recent resurgence may prove that it isn’t as much a joke/meme coin as some believed. On the other hand, it’s possible that it won’t. It may never be.

It’s important to understand that cryptocurrencies, especially meme coins, are quite volatile; values can go up as well as down. So do your research and keep in mind that your decision to trade is based on your risk tolerance, market expertise, the spread of your investment portfolio, and how comfortable you are with losing money. Never put more money into something than you can afford to lose.

Advertisement

Let’s get a little further into Shiba Inu right now! On cryptocurrencysimple.com, you are reading this content.

What exactly do you know about Shiba Inu Coin?

Shiba Inu is an ERC-20 token made on Ethereum by an unknown person named Ryoshi. Shiba Inu’s coin official website says that the coin is a decentralized meme token that is becoming part of a lively ecosystem becoming more popular.

“SHIB is an experiment in community-building that doesn’t have to be planned ahead of time. First up, we have the SHIB token, which lets people own billions or even billions of them. Known as the DOGECOIN KILLER, this ERC-20 ONLY token can stay well under a penny and still outpace Dogecoin in a short amount of time.”

The token’s white paper says that the goal is to build an ecosystem with three tokens that have different supplies.

So far, there is one quadrillion SHIBs in the ecosystem, and they can’t be made anymore. Tokens LEASH and BONE were the second and third to be made. LEASH has a supply of 107,650 tokens, and BONE has a supply of 250,000,000 tokens.

Advertisement

Users can “dig” (provide liquidity), “bury” (stake coins), “fetch” (retrieve tokens from ShibaSwap or SushiSwap), and “trade” coins on the ShibaSwap exchange, which isn’t run by the team that makes the tokens. 

Like other exchanges on the Ethereum network, SushiSwap and Uniswap, this one lets you buy and sell Ethereum.

 I will later explain to you all what exactly and how does LEASH, BONE, and BURY Tokens are helpful.

Quick facts on Shiba Inu Coin

  • On the Ethereum network, Shiba Inu is an ERC-20 altcoin.
  • The coin was produced by an unknown individual known only as Ryoshi, also known as the “Dogecoin Killer.” 
  • With a maximum supply of one quadrillion tokens, about 400 trillion SHIB tokens are in circulation.
  • Shiba Inu’s designers have established an ecosystem consisting of three coins: SHIB, LEASH, and BONE, as well as ShibaSwap, a decentralized exchange.
  • Ryoshi gave Vitalik Buterin, the Ethereum founder, half of the token’s supply.
  • Early in May, Buterin donated and burnt all of his assets, causing the price to plummet.
  • After Buterin donated, the SHIB white paper changed to say that they were good for the coin and that Buterin is a “friend of SHIB.”
  • Some SHIB investors were told to think that Buterin was one of the project’s backers.

Shiba Inu’s advantages in today’s market include:

Is Shiba Inu Coin A Good Investment In 2022?

1) Cryptocurrency meme brand with a lot of value

There are around 13,000 cryptocurrencies in use now, with new ones appearing every week. Few of these cryptocurrencies have significant technological advantages over Bitcoin, Ethereum, or other popular cryptocurrencies. Effective branding is necessary to stand out from the sea of cryptocurrencies. Shiba Inu has adopted Dogecoin’s successful meme-friendly branding strategy. Shiba Inu has been trending on social media during its incredible run, and its brand has spread like wildfire. Shiba Inu may flourish or perish in the long run primarily based on its brand, as it lacks a strong technological edge at this time.

2) Robinhood trading possibilities

Advertisement

Shiba Inu has a fervent online following, and the community has been lobbying popular trading software Robinhood to add the cryptocurrency to its limited list of tradeable crypto coins. More than 400,000 people have signed a Change.org petition urging Robinhood to support Shiba Inu. Robinhood hasn’t said anything about Shiba Inu, but it did claim $30 million in income from Dogecoin trading in the first quarter of 2021 after adding the cryptocurrency to its platform. If the cryptocurrency’s popularity grows, the financial temptation for Robinhood to add Shiba Inu trading may become too great to ignore.

3) Intro to ShibaSwap

The Shibaswap decentralized exchange is one way Shiba Inu developers aim to grow their community and brand. Decentralized exchanges are peer-to-peer platforms that enable users to trade cryptocurrencies without the involvement of a middleman. The Shiba ecosystem consists of three cryptos. Shiba Inu is one of them. Users of Shibaswap may also stake their Crypto for a return comparable to interest on a savings account. In addition, Shibaswap users may also keep track of their earnings in their “bonefolio” and exchange over 10,000 nonfungible tokens with a variety of features and rarities. Hold on, we will slowly come to the point on ( Shiba Inu Coin A Good Investment ), & I will discuss all aspects you should know about Shiba inu.

Shiba Inu’s disadvantages included:

Is Shiba Inu Coin A Good Investment In 2022?

1) Extreme turbulence

Investors are ecstatic when a stock skyrockets by this much in less than a year. Volatility, unfortunately, swings in both directions. The possibility for the Crypto’s price to plummet as dramatically as it rose may be part of the pleasure for investors searching for an adrenaline rush or a gambler’s high while trading Shiba Inu. According to Coinbase, the average holding duration for Shiba Inu investors is only 13 days. So, if market speculators and momentum traders all depart the ship simultaneously, a reversal may swiftly snowball, crushing long-term investors.

2) Musk does Doesn’t own it.

Advertisement

Shiba Inu is one of many dog-themed cryptocurrencies based on the original doge joke. Elon Musk, the CEO of Tesla, has been a vocal backer of Dogecoin, and he even adopted a Shiba Inu dog named Floki earlier this year. The price of Shiba Inu soared in October when Musk tweeted a photo of the puppy on Twitter. Still, Musk recently disappointed Shiba Inu fans by revealing that the only cryptos he owns are Bitcoin, Ethereum, and Dogecoin. Musk’s Dogecoin endorsement may be bad news for Shiba Inu investors aiming for the top dog in meme cryptocurrency land.

3) Inapplicability in the actual world

Unlike Bitcoin and Ethereum, Shiba Inu offers little appeal to investors outside of a cryptocurrency market. According to some source, just roughly 100 global retailers accept Shiba Inu as payment. Those sellers are mostly cryptocurrency-related firms that aren’t well-known. Shiba Inu’s fees, transaction speed, or structure aren’t distinguishable enough to make it more useful or practical than hundreds or thousands of other Crypto. Michael Burry recently termed Shiba Inu ” pointless ” the famed “The Big Short” investor, Michael Burry, recently termed Shiba Inu “pointless.” Burry takes issue with Shiba Inu’s one quadrillion coin supply, claiming that the large supply restricts future price appreciation.

Is Shiba Inu Coin a good Investment in 2022? 

Is The Shiba Inu Coin A Good Investment In 2022? Pros &Amp; Cons Explained!
Shiba Inu Coin A Good Investment

The whitepaper, or different versions of the whitepaper as it has changed since the coin’s launch, is one of the most important parts of its authenticity. For example, when Ryoshi made Shiba Inu, he gave Vitalik Buterin, who made Ethereum, half of the money that was made.

Ryoshi is quoted in the whitepaper as saying, “We sent Vitalik half of the complete quantity. There is no grandeur without a weak spot, and SHIBA will flourish and live as long as VB (Vitalik Buterin) does not destroy us.”

Buterin handed out 50 trillion SHIB, worth $1 billion at the time, to charity on May 12th and then burnt 90% of the remaining coins he possessed. He also stated that he would contribute the remaining 10% to another good organization.

Advertisement

Buterin Also included a disclaimer in his transaction, stating that anybody creating new coins should never transfer coins without his permission.

The announcement that Buterin was giving away all of his tokens caused the price of SHIB to plummet. The community thought Buterin was either purposefully involved or involved merely because he held so much of the token.

The white paper was updated with a new section headed “Vitalik Buterin, Friend of SHIB.” The first sentence of this section describes Ryoshi as a visionary and Buterin as a visionary. Unfortunately, after that, it misspells Ethereum as Etherium.

“Vitalik Buterin, like Shib’s inventor Ryoshi, is a visionary. VB, one of the world’s youngest billionaires, is a 27-year-old developer of Etherium and, until recently, possessed half of the total supply of SHIB.”

The fact that the author gave Bitcoin to Buterin in the first place is the biggest red flag. It’s nearly hard to determine the creator’s true intention, although it appears to be a marketing ploy. In addition, there were several posts in the Shib Reddit forum regarding Buterin owning the token and being an investor, which elevated people’s expectations even further.

Advertisement

To invest in this cryptocurrency, like with most others, some element of speculation is necessary. While SHIB has received a lot of attention in the previous year due to meme culture, it isn’t easy to attach value from an investing standpoint.

The main worries with SHIB stem from its creator’s conduct. Sending half the supply to Buterin and then modifying the whitepaper after the donations and burn appears deceptive. Calling Buterin a “friend of SHIB” is likewise a stretch, if not completely incorrect.

Furthermore, while SHIB has its ecosystem with a decentralized exchange, it is uncertain how secure it is to utilize compared to others, such as Uniswap, that have undergone substantially more audits. Acquiring SHIB is equivalent to purchasing one of the 1,000+ cryptocurrency lottery tickets available.

Now you tell me forks! What do you think of Shiba Inu Coin A Good Investment or not? Share your views in the comment section.

Future of Shiba Inu Coin in next ten years

Shiba Inu Coin A Good Investment

When it comes to the future of the Shiba Inu coin & Shiba Inu Coin A Good Investment, WalletInvestor forecasts a price of $0.000048 by the end of the year. Furthermore, it predicts a Shiba Inu price prediction 2025 of $0.000226 by the end of December that year, with a range of $0.000088 by November 2022.

Meanwhile, Gov. capital predicts that it will hit $0.000128 in November 2022 and hover at $0.000119 in early 2023. Then, according to the website, it might reach $0.000247 in November 2023 and $0.000418 in November 2024. Its Shiba Inu price forecast for 2025 forecasts that it will touch $0.000643 in November of that year and $0.000920 in November of 2026.

Advertisement

Finally, Experts predict that it will hit $0.0000569859 before the end of the year and $0.0000712618 by November 2022. Prices of $0.0001061594 in November 2025, $0.0001426004 in November 2026, and $0.0001883562 in November 2028 are also suggested. Given the coin’s significant volatility, Shiba Inu’s price predictions for 2030 are rare and incorrect. But hey, Don’t just come to the conclusion after reading these potential targets, stick to the fundamentals and then decide Is Shiba Inu Coin A Good Investment or not.

Frequently Asked Questions on Shiba Inu

1) Is it possible for the Shiba Inu coin to achieve $1?

It’s possible. However, it is unlikely to happen very soon, given the cheap cost. For starters, doing so would inject a large amount of money into the global economy, causing severe inflation.

Second, it isn’t built to reach those altitudes. The concept was that because of its very cheap value, it might beat competitors even if it didn’t cross the one-cent barrier. That isn’t a criticism of the coin; that is how it functions.

2) Where can I get Shiba in coins?

Advertisement

Kudos! I’ve previously written a comprehensive essay on (How to Buy Shiba Inu Coin), and I recommend reading it for a better understanding. By the way, you may get a Shiba Inu from a variety of reputable exchanges ( Recommend by us )

  • Binance
  • BitFinex
  • Wazirx
  • Kucoin

3) Is there a future for the Shiba coin? or Shiba Inu Coin A Good Investment?

Cryptocurrencies, particularly “meme coins” like Shiba Inu, are high-risk investments. SHIB’s future will be determined if it finds a useful application that leads to widespread adoption. The destiny of the coin will also be determined by activity on cryptocurrency exchanges.

That’s all for today’s article on ( Shiba Inu Coin A Good Investment or not? ). I hope you enjoyed reading this! There’s a lot more to come so be ready! Until then, See ya. Pushkar is singing off.

Advertisement
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Blockchain

Terra Luna price gained 100% in 5 days amid a market crash! Terra Luna TA & FA Analysis 2022

Published

on

Terra Luna Price

Following a severe meltdown earlier this week, the cryptocurrency market has recovered. Many altcoins could rebound slightly and bounce back from their respective support prices. Terra Luna was one of the altcoins that had a strong recovery with Terra Luna price, with its price increasing by more than 20%. Except for LUNA, which is currently up by more than 95 percent during the last seven days, most cryptos are negative. Is LUNA proving to be an excellent coin to purchase to protect against the crypto downturn? Should you invest in LUNA and include it in your cryptocurrency portfolio? In this Terra Luna Price prediction, we’ll look at all for you to analyze it more preciously. What’s next!? Let’s get into it!

What is Terra (LUNA) Crypto Coin?

Terra is a blockchain technology that uses stablecoins to stabilize global payment networks. In reality, they say that by adopting Bitcoin (BTC), they can combine price stability with fiat currencies, resulting in low-cost settlements. However, volatility is a hot topic in the cryptocurrency community. 

It is one of the key reasons investors are hesitant to invest in cryptos. Terra wants to fix that by introducing stablecoins tethered to fiat currency. A patented algorithm that automatically changes stable coin supply based on demand would maintain a “one stable coin to one fiat” peg. This is made possible by their LUNA token, which provides liquidity price stability, and is easily swappable for other stablecoins at favorable exchange rates.

Terra requires more individuals on the network for this currency network to function. Terra Alliance, a group of 15 major Asian e-commerce giants, was founded to do this. The alliance conducts $ 25 billion in annual transactions and has 45 million active users. 

Advertisement

As a result, Terra may offer a simple payment network without the need for typical payment value chains. Furthermore, Terra has much lower transaction costs. It is developing a more rigorous infrastructure with DeFi tools and assets for users to employ.

How does Terra Luna Works? 

The Terra protocol functions as a distributed ledger kept up to date by network validators. Validators use the DPoS algorithm to vote on blocks, earning LUNA tokens in the process. Terra miners contribute to security by participating in the Proof of Stake consensus mechanism. They also assist in price stabilization by absorbing short-term demand fluctuations.

As a result, the network achieves stability through mining rewards as the money supply contracts and expands. Terra applies pressure to bring prices back to normal whenever they diverge a little. Terra’s supply is constantly replenished or depleted by the LUNA pool and Terra pool. Miners use LUNA to mint Terra and the other way around. The procedure provides consistent rewards in both contractions and expansions. As a result, the simple supply and demand law applies.

Token Economics of Luna 

There are two sorts of tokens in the Terra ecosystem: a comprehensive family of Terra Stablecoins and LUNA. LUNA’s native coin is used for governance, mining rewards, volatility mitigation, and transaction fees. Miners stake LUNA to mine Terra stablecoins, and the system uses a Delegated Proof of Stake (DPoS) mechanism. 

The world’s strongest fiat currencies are tied to Terra stablecoins. The package includes USD, EUR, CNY, JPY, GBP, KRW, and other currencies. The network will add new coins over time as users vote.

Advertisement

Technical Analysis of Terra Luna Price

Terra Luna Price
Terra Luna Price

Prices were predicted to reach the psychological price of $60 after the LUNA price came the firm support of $50. Instead, LUNA prices continued to rise as part of the crypto rebound, approaching the next resistance level of $70. The primary pricing zones of LUNA that all represent psychological prices are highlighted below:

  • 50$, Which was a Support area luna took and showed us Feaking outstanding rally
  • The next Physiological resistance was at 73$, Where Terra Luna Price Broke it in 1st attempt and eventually took healthy support, and then Price started rising again to the next resistance.
  • Next Horizontal Resistance was at 85 – 87$ Zone which kept Luna stagnant for a bit but ultimately it broke out when whole market rose on this Monday night.
  • Terra Luna Price is very near to its All-time High peak price point, Now there are two possibilities for you to look at:
  • Whether Luna goes and break 87$ support and find it as current support and after that we may come to the point, Terra Luna Price can actually come to the ATH and make a new ATH and enter in a price discovery phase!
  • But But But, We all know there’s a most famous price pattern is known as Double top. So Terra Luna Price may form a double top pattern and start a downtrend.
  • These are 2 possibilities that may happen or may not happen, Also it all depends on hows the Crypto Market AKA BTC price action tells, So just wait and watch the levels I shared below, so you guys can get a whole idea of what I am talking about.
Terra Luna Price Gained 100% In 5 Days Amid A Market Crash! Terra Luna Ta &Amp; Fa Analysis 2022

cryptocurrencysimple.com

  • A $70 buy order can be placed if the crypto market continues to rise.
  • If the crypto market falls below $50, a short sell can be made according to the price action of Terra Luna Price.
  • It’s critical to remember to set an appropriate stop-loss based on your risk tolerance.

5 Things to Know Before You Buy Terra (LUNA) Coin

Terra already has millions of users and is working on several significant projects. If you’re thinking about investing in Terra, here’s what you should know.

1) Terra Luna tokens balance out its stable coin prices.

Terra uses Luna tokens to keep its stablecoin prices where they should be. When the stablecoin supply needs to be increased or decreased, it incentivizes trading between Luna and stablecoins.

Consider the following scenario: UST, Terra’s US dollar stablecoin, is in high demand. As a result, the price has risen to $1.05, when it should have been $1. Terra will need to increase the quantity of UST tokens to counteract this.

2) In South Korea, Terra is the most popular.

Terra has enjoyed the most successful in its home country of South Korea so far. According to a Terra video from May 2021, its stablecoin linked to the South Korean won is utilized by over 2 million people each year to spend over $1 billion. In addition, Terra’s stablecoin, pegged to the Mongolian tugrik, was utilized by 40,000 people every month.

Terra, to its credit, already has a clientele. Of course, there’s no assurance it’ll succeed in expanding to the United States, but as we’ll see later, it’s offering a significant incentive to acquire its US dollar stablecoin.

3) Terra is giving a 20% interest rate on UST.

Terra introduced the Anchor savings and lending protocol on March 17, 2021. Users can deposit stablecoins and earn interest on them using this protocol. The simple interest rate yearly on UST deposits is around 20%.

Advertisement

Because UST is a stablecoin with a $1 value, earning 20% interest is appealing. However, it’s worth mentioning that the interest rate may vary in the future, and even stablecoins aren’t as safe as cash in a bank account.

The high-interest rate may aid in the growth of UST’s customer base. If it happens, Terra’s Luna token price will most likely rise.

4) Luna tokens are also utilized for project staking and governance.

Holders of Luna tokens have the option to stake their tokens. You pledge those tokens to the network when you stake Luna, and they’re used to validate transactions. There is no danger in doing so. You can always pull your tokens out of the game (unstacking can take up to 21 days). In addition, you get a part of the transaction fees Terra earns on the use of its stablecoins if you stake Luna.

Token holders have a say in Terra’s destiny as well. For example, Luna holders have voting rights in the project because it is a governance token.

5) The Terra blockchain is in the top five in terms of revenue.

The Luna cryptocurrency hasn’t cracked the top 20 in market capitalization. The Terra blockchain, on the other hand, is already one of the largest. According to Token Terminal, Terra is in the top five in terms of revenue. It trails Ethereum (ETH), the Binance Smart Chain, and Bitcoin but is tied with Polygon (MATIC).

Advertisement

For Terra enthusiasts, this is a promising omen. Terra is one of the most profitable cryptocurrency projects, even though many others are still developing.

In conclusion,

The Terra Blockchain’s governance and the native token is LUNA. Since its introduction in 2018, the Terra project has been a huge success, and the coin has benefited from it. Thanks to a tremendous price rise, LUNA’s price increased by more than 10,000% in 2021. According to crypto analysts, more is expected in 2022, when they believe that the token will be at the top of crypto investors’ wish lists. 

I would say always keep an eye on Terra Luna’s price because I don’t want anyone to lose this valuable gem at a discounted price! Rest, always. I am not a financial advisor. DYOR before investing or trading! Till then, keep reading and keep gaining knowledge on the crypto space through cryptocurrencysimple.com.

Frequently asked questions:

1) What is the Luna currency?

Terra (LUNA) is a blockchain-based payment network with a wide range of services. The network supports several stablecoins, each of which is linked to a distinct fiat currency. In addition, there is a LUNA token that serves as collateral for these stablecoins and as network fuel.

Advertisement

2) What is the total number of Luna coins in circulation?

It has a circulating supply of 1,706,430 LUNA coins and a maximum supply of 1,705,430 LUNA coins.

3) How good is Luna as a cryptocurrency?

In 2021, LUNA was one of the best-performing cryptocurrencies. Over the last 12 months, the coin has increased in value by more than 13,800%, beating most of the other cryptocurrencies. LUNA is presently the ninth-largest cryptocurrency by market capitalization due to its surge.

4) Is Luna a good financial investment?

Advertisement

Some may be surprised to learn that Terra Networks’ LUNA cryptocurrency was the best-performing investment in the previous year, with a return of over 14 700 percent in 2021. In reality, an R1,000 investment in LUNA would have yielded +R147,692 over the last year.

5) Is it okay if I mine Luna?

To mine transactions in the Terra system, miners must put some of their Luna into the system. This is called Proof of Stake (PoS). A validator who has staked more Luna has a better chance of making the next Terra block than one who has staked less.

6) Why is the value of the Luna currency continuing to increase?

On Tuesday, people who bought tokens from LFG agreed to keep them for four years, so the company raised $1 billion for its reserve fund. It was a big deal because Jump Crypto, DeFiance Capital, and Three Arrows Capital helped fund the investment round. This caused a big rise in the value of LUNA at the moment.

Advertisement

Continue Reading

Bitcoin

Bitcoin vs Dogecoin: Tough Fight between Crypto Ginat vs Meme God in 2022

Published

on

Bitcoin Vs Dogecoin: Tough Fight Between Crypto Ginat Vs Meme God In 2022

In a bizarre twist of fate, Dogecoin has risen to become one of the most valuable cryptocurrencies in terms of market capitalization, reaching a peak of $75 billion in May last year. Bitcoin’s market capitalization is currently over $1 trillion. The people have selected the meme coin while a hype of Bitcoin vs dogecoin going around, but does it stand a chance against the Crypto giant?

Dogecoin began as a joke to help people learn about blockchain‘s possibilities in a fun and meme-like fashion. Billy Markus and Jackson Palmer, the developers of Dogecoin, copied the Litecoin source code, added a Shiba Inu logo, and released the Doge as a full-fledged Crypto coin.

Dogecoin is an open-source project that has evolved over time and now has some significant technological variations from the Bitcoin code it was based on when it first started. But, what exactly are these distinctions, and do they offer value to the digital currency compared to Bitcoin? Which is the better investment for someone like you!? Let’s find out here on cryptocurrencysimple.com. 

Before I go deeper into comparison, let us look at Bitcoin and Dogecoin & How they work in this crypto Blockchain world!

Advertisement

What exactly is Bitcoin?

Bitcoin Vs Dogecoin

Satoshi Nakamoto invented Bitcoin in 2008, and it was first used in 2009. Satoshi Nakamoto is a pseudonym for someone yet unknown to the rest of the world. Satoshi argued that a public creator could not exist for a product such as Bitcoin since it would undermine the decentralized principle.

Since the 1980s, Bitcoin’s decentralized ledger became the first genuine blockchain implementation despite comparable notions within the crypto community. Satoshi then realized that a network might make spam uneconomical by demanding energy-intensive, complex computations. This mechanism, known as proof of work (PoW), allowed individuals willing to pay a fee for network access to perform trustless, peer-to-peer Bitcoin transactions.

The money was delivered to the miners, a decentralized network of individuals who do these complicated calculations to share the profits. PoW simultaneously eliminated spam and provided random people worldwide with a way to earn money from their home computers. As more users choose to contribute their processing power to the Bitcoin network, the value of Bitcoin increases.

What is Dogecoin?

Bitcoin Vs Dogecoin

Many Bitcoin clones were produced in the middle of a wave of irrationally overbought Bitcoin clones, and Dogecoin was one of them. Billy Markus and Jackson Palmer had no intention of getting millionaires; all they wanted to do was a meme on other shitcoins. But, unfortunately, that is precisely what they did.

Markus claimed in a Reddit rant that the project took around three hours to complete and that he spent “the most of that time modifying the client’s code to make the text Comic Sans.”

If that isn’t enough to persuade you of Dogecoin’s over $75 billion market worth, check Dogecoin: A Full beginner Guide to know more about it!

6 Reasons/facts to know who is better between Bitcoin vs Dogecoin

Bitcoin Vs Dogecoin

#1 ) The Purpose for the Coin

Its creators made Bitcoin work a little bit like digital gold. This means that while Bitcoin can process about seven transactions per second (TPS), it’s worth far more than any other coin. The reason people use BTC for significant money transactions is because it’s easy to send and receive money.

Some people also think of Bitcoin as an investment, which has worked out well because Bitcoin has grown at an average rate of 100 percent to 200 percent each year. From March 2020 to July 2021, the value of Bitcoin went up about 800 percent, which made great money for people who were able to hold on through the ups and downs.

Advertisement

On the other hand, meme-based Dogecoin started as a way for people to learn about cryptocurrency fun and easy. It was a coin that people could send for educational purposes or as a unique hobby. The price was so low that people could send it to each other for a small amount of money. Many online businesses now accept DOGE, but it’s not as common as BTC.

#2 ) Bitcoin is more than just a money-transfer method.

Let’s start with the notion that Doge might become a usable cryptocurrency one day. It has the potential to outperform Bitcoin. Transactions are speedier, more eco-friendly, and less expensive. However, it’s a crowded market, and I’d be wary of investing in anything that is only a means of payment.

The following are some of the critical factors:

 Other Altcoins: Dogecoin is one of many alternative coins that improve Bitcoin’s payment capabilities. The problem is that they’re all volatile. Would you want to take money for a meal only to have the value decrease in a couple of days if you were running a restaurant? It would have a negative impact on your cash flow.

Stablecoins: Stablecoins address the issue of volatility. Because these cryptocurrencies are linked to stable assets like dollars or gold, their value does not change dramatically from day to day.

Advertisement

Government coinage: such as the digital dollar, are another possible competitor in the digital payments sector. The Federal Reserve ( FDR ) has stated that it is considering creating its coin, while China has already begun testing a digital yuan. Because they are both stable and supported by the government, they have the potential to blow the alt currencies out of the water.

We don’t yet know how this will play out, but one thing is sure if Doge is to succeed as a digital currency, it will face stiff competition from all sides. Bitcoin, on the other hand, is competing in a separate race. Some regard it as a gold-like digital store of value. Others see it as a stable, safe platform to build additional cryptocurrencies.

#3 ) Market Capitalization

There is no contest when comparing the two cryptocurrencies regarding market capitalization. Bitcoin’s market valuation was over $867 billion at writing, whereas dogecoins were slightly over $31 billion. Bitcoin is presently the most valuable cryptocurrency, with Dogecoin ranking ninth.

DOGE was formerly rated somewhere between the 30th and 50th most valuable cryptocurrencies by market capitalization, if not considerably lower. However, during the altcoin craze of 2017 and 2018, the meme coin surpassed the $0.01 barrier and hit a market worth of $1 billion for the first time.

Bitcoin has always been the most significant valuable cryptocurrency in market capitalization. Other coins can’t compete for the top rank in the same way as Bitcoin can since it has the oldest history, the most secure network, and the largest community of users and volunteer developers. So when big-time investors with a lot of working cash want to go into crypto, they usually put the majority of their money into Bitcoin, deeming the other choices too hazardous.

Advertisement

Although the speed with which specific cryptocurrencies, like Dogecoin, have ascended the ranks, it appears that Bitcoin will remain the most valuable currency by market capitalization.

#4 ) Big group of people supports Bitcoin.

The Bitcoin Foundation and other organizations fund a big development crew to maintain Bitcoin bug-free and up to date. Although Bitcoin is sluggish, developers consider building additional technologies on top of it. In addition, the IT specialists are working on upgrades that would make transactions more straightforward and less expensive.

Dogecoin has announced that its first update in years will be released shortly. Dogecoin has four part-time developers who claim that Doge 1.21 will be released soon. That’s fantastic news for Doge, but it’s only a drop in the bucket. Because Doge lacks full-time developers, what happens if the platform is hacked or a technical issue arises in the middle of the night?

#5 ) Block Time and Transaction Speed

This really is one area where Dogecoin outperforms Bitcoin, as the DOGE network executes transactions more swiftly and cheaply than the BTC blockchain.

Every minute, the DOGE blockchain processes a new block of transactions. Every 10 minutes, the BTC Blockchain processes a new block. While this makes DOGE more appealing as a medium of trade, it is less attractive as a store of value.

Advertisement

A larger quantity of new Dogecoins entering the market tends to push down the price since DOGE miners earn 10x the block rewards as Bitcoin miners.

#6 ) Total / circulating supply 

It’s tough to compare the supply and demand for Dogecoin and Bitcoin because they are very different.

One of the things that makes Bitcoin valuable is that it has a low-inflationary money policy. There is less and less Bitcoin over time, not more. If you’re a miner, you get a block reward every four years or so. This process is called “the halving.” There will only be 21 million Bitcoin ever mined, so there will never be more than that.

On the other hand, Dogecoin has a policy that causes money to grow. There is no limit to how many DOGE coins miners can make, but there is a cap of 5 billion coins each year. In addition, the reward for mining DOGE hasn’t changed in a long time, so 10,000 DOGE is still the reward for each block.

In other words, people can keep mining DOGE and dumping it on the market until there is no more of it left to mine. DOGE’s supply and demand make it more likely that the price will fall toward the center of the Earth as time goes on.

Advertisement

#7 ) Bitcoin is a superior long-term investment.

The Motley Fool, Tesla, MicroStrategy, The Ascent’s parent company, and other big MNCs hold Bitcoin because it believes in the currency’s long-term potential. It isn’t aiming for quick profits; instead, it is willing to retain Bitcoin, hoping that it will do well over time.

Is a long-term investment in Dogecoin a wise idea? It may continue to astonish us all. However, the coin was developed as a joke with no real purpose, and its market capitalization has now surpassed that of some well-known corporations. I would not invest in a company that did not have a business strategy, regardless of its prominence on the internet.

At the end of the day, all cryptocurrencies are high-risk investments. There’s a lot we don’t know about how they’ll play out. However, Dogecoin appears to be riskier than most. It has exceeded enormously, and I hope it continues to do so for the Dogecoin community. But it’s just too much of a risk for me.

{ Conclusion } So, What’s Better: Bitcoin vs. Dogecoin?

Bitcoin Vs Dogecoin

Bitcoin is the best cryptocurrency for most investors, especially over the long term. With the endorsement of major institutional investors like Tesla and PayPal, it’s become clear that Bitcoin is a sound investment. Moreover, Bitcoin’s hard-capped supply ensures investors of the digital asset’s scarcity continue forward. Given the current level of buzz around Dogecoin, the cryptocurrency might outperform Bitcoin shortly if the current trend persists.

FAQS on Bitcoin vs dogecoin:

1) Is Dogecoin on its Way to Becoming the Next Bitcoin?

Dogecoin would have a hard time displacing Bitcoin as the most popular cryptocurrency. Bitcoin has 98 percent of the hashing power of all proof-of-work currencies, and there’s no reason to believe Dogecoin or any of the other altcoins will be able to compete with it.

Advertisement

2) Is Dogecoin worth buying?

I don’t suggest Dogecoin to investors because it has no real-world application. However, when the price is much lower than its previous peak, buying this meme currency now may appear to be a low-risk, high-reward decision.

3) Who owns the most Dogecoin?

With the address ‘DH5yaieqoZN36fDVciNyRueRGvGLR3mr7L’, the top account currently holds 36,711,943,025 DOGE or 28.28% of all Dogecoin.

4) Is Dogecoin safe? 

Advertisement

While all cryptocurrencies carry some level of risk, Dogecoin is one of the most hazardous. So before you even consider purchasing, examine how this investment will perform over time.

5) So, Where to Buy Dogecoin?

Bitcoin is now accepted practically everywhere, including petrol stations. However, we do not encourage squandering your hard-earned cash on extortionate Bitcoin ATM fees. Instead, Coinbase, CoinDCX, Gemini, Robinhood, Kraken, BlockFi, Binance, and other exchanges provide them. Check out cryptocurrencysimple guide to the Best Cryptocurrency Exchanges if you’re new to crypto.

Advertisement
Continue Reading

Cryptocurrency

What is Peercoin? A Full Guide

Published

on

What Is Peercoin? A Full Guide

The famous blockchain networks faced security problems, scalability issues, and sometimes they were beyond affordable. Relying on the PoW system many of the networks carried on with the high energy consumption. It has a protocol where constantly operational computing systems go on with complex mathematical problems. There is huge competition for these mining rewards. But when the energy prices would move up, considering the reduction of mining rewards, that would make the one cryptocurrency less appealing to miners.

So a new hybrid organization came to light with Peercoin. 

What is Peercoin? 

A network that is more energy-efficient than PoW ( Proof-of-work) and also a decentralized platform on the blockchain is Peercoin. It is intended to transfer the digital assets and it operates on a hybrid organization. Using the Proof-of-stake consensus made Peercoin the first green cryptocurrency. It is also known as PPCoin and PPC. It has an average transaction time of 8.5 minutes which is less than Bitcoin.

What Is Peercoin? A Full Guide

Creation of Peercoin 

In the year 2012, Information Technology specialists Scott Nadali and Sunny King launched the whitepaper. Unlike Mr. Nakamoto, they were also anonymous figures. One of the developers – Sunny King, also developed Primecoin and VEE. According to it, though it was based on Bitcoin technology, it combines PoW and PoS methods. Nowadays PoS is trending, and it concentrates on potential security and long-term sustainability issues. 

Unique features of Peercoin 

Various unique aspects make Peercoin a totally different and special one. 

Advertisement
Hybrid protocols – Peercoin is a combination of Proof-of-Stake and Proof-of-work systems to process the stable transactions and distribution of coins. The PoS method protects the system, in which the SHA-256 encryption algorithm is integrated carefully. The PoS system has some key reminders –
  1. Inventory Management is a very special feature of PoS, where users are allowed to manage the assets in real-time and know the number of goods they own over a given period.
  2. Different types of invoicing are available in PoS like – Sell, buy, renting, and repair. 
  3. Through these Customer orders and Suppliers, orders are manageable. It leads to the satisfaction of the customers and company revenue as well. 
  4. Transaction Rewards are the most attractive opportunity for the minters or forgers. 
  5. The impracticality of the 51% attack, makes the attack so worthless and expensive and not so profitable.
  6. The coins are generated with PoS regarding the amount and age of those kept in a user’s wallet. It is the way to keep the blockchain secure. 

Apart from all that, selecting the next block forger is based on coin day. ( The time they were using the user’s wallet × token amount). This timestamp is added for each transaction, which makes the process of calculating coin days easy.

  1. The PoS method unites the miners and owners so that each network participant can play both roles.
  2. After 30 days of coin holding, one can create a new block. When the coin age reaches 90 days, the chances are maxed out. The first input is called a kernel and it must meet the fixed hash target protocols (per unit coin age consumed in the kernel). When the consumption increases, the protocol is reached easily.
What Is Peercoin? A Full Guide
  • Stable Inflation – The great reward system indicates that it has inbuilt inflation and with that, there is no maximum supply of Peercoins. With exactly a 1% inflation rate, it refers to encouraging the users to store the currency, contributing to low inflation. Users who don’t participate in staking or minting transactions receive nothing. If the coin reaches a 2 billion cap one day, then the inflation rate would theoretically rise.
  • Energy Efficiency – PoW stands on high energy consumption and expensive fees which are gathered from both inflation and transaction fees. Whereas PoS solved the problem and created an idea to carry on with a secure peer-to-peer network where all computers could participate equally. It can save a huge amount of energy and it will prevent centralization as well.
  • Checkpointing – Unlike the System Restore in Windows, Checkpointing is a security protocol in case of emergency attacks. Sunny King addresses them as “protection of history”.
What Is Peercoin? A Full Guide

How does PPC work?

Peercoin uses the PoW ( Proof-of-Work) protocol to distribute coins. The mining process leads to solving complex mathematical problems using specialized mining devices. 

To verify transactions PoS (Proof-of-Stake) is used. Any Peercoin holder can participate and pledge the coins to the network for verification. After that, a user is selected randomly to verify a block of transactions which depends on the number of coins held. 

In the process of ‘mining’, hashes are discovered to make new blocks. There are several Peercoin-dedicated mining pools to choose from, along with multi-coin pools such as Coinotron, Give Me COINS, and Multipool.us.

Advantages of Peercoins 

  • Proof-of-Stake is used for complete protection.
  • Consumption of lower energy during mining. It is long-term sustainable due to much lower requirements for electricity.
  • For the payments of performed services, PPC tokens are used inside the platform, the cost of them is $1.38 per coin.
  • The main chain, which has a bigger total amount of spent coin age, is determined by Peercoin. To have recorded it goes on with the spending of coin age for each transaction in each block.
  • Security of network users is provided.
  • To control inflation, the system destroys all transaction costs.
  • It has an unlimited token supply.
What Is Peercoin? A Full Guide

Disadvantages of Peercoin 

  • It has an unstable price record. 
  • Anonymity is not preferred here. 
  • It is not in trend like other platforms. 

PPC current price 

The price of Peercoin is running at $0.754392 with a full 24 hours trading volume of $17,877.74. Peercoin is down by 1.63% since yesterday. It carries an approximate rank of 838. The present market cap is $20,609,514. The current circulation is 27,319,359 PPC coins. The FDV or maximum supply is not available. 

How to buy PPC 

To buy PPC there are several trending exchange platforms. The top cryptocurrency exchanges for trading in Peercoin stock are currently –

  • HitBTC ( PPC/ USD) 
  • Hotbit (PPC/ BTC)
  • YoBit (PPC/ BTC)
  • Bittrex (PPC/ BTC)
  • The Rock Trading ( PPC/BTC) 
  • SouthXchange (PPC/ USD)

What Is Peercoin? A Full Guide

What is the future of Peercoin?

It is a decentralized ledger and less expensive one used in businesses to track share ownership and the distribution of dividends in an automated fashion. It can have a good future with two projects going on – 

  1. Indicium – This Decentralized Autonomous Company or DAC is focused on creating and trading crypto indexes. With the Indicium tokens, users can stake in ownership and get the right to receive dividends, vote on executive board elections and operations.
  2. Peerassets – To create and exchange assets, this blockchain-agnostic protocol can work easily. As it is under the Peercoin blockchain, security, size efficiency, and low transaction fee are preserved. 

Should you buy Peercoin? 

It is notable for its Proof-of-Stake technology because before any other famous cryptocurrencies like Bitcoin is focused on sustainability and user-friendly investment strategies. So it is good for investing.

How can someone store PPC?

From the official Peercoin website, Peercoin wallets can be downloaded. For maximizing security paper wallets can also be created. It is also available for both – desktop Windows and Linux versions and mobile users in the Android version.

What is the difference between Peercoin and Bitcoin?

It has a significant difference in maximum supply. Peercoin hasn’t set any, whereas Bitcoin has a 21 million maximum supply. It is affordable because of Peercoin’s consensus protocol, it uses a smaller fraction of the energy than the famous Bitcoin does.

Advertisement

Continue Reading
Advertisement

Trending