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Bitcoin Vs. Shiba Inu – What’s the Difference?
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Every crypto trader should be able to tell the differences between Bitcoin (BTC) and Shiba Inu (SHIB). These projects differ in many aspects, and are geared towards different types of crypto users. Here is everything you need to know about Bitcoin vs Shiba Inu.
What is Shiba Inu?
Shiba Inu entered the market in 2020 following a host of controversies surrounding a group of Redditors and Game stock stocks. The project entered the market as an “…experiment in decentralized spontaneous community building” according to its developers. Notably, Shiba Inu follows in the footsteps of other meme coins.
Meme coins are cryptocurrencies that leverage popular cultural items to improve 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 top meme coins of all time.
The Shiba Inu project was launched by a group of anonymous developers. They dubbed the coin the “Dogecoin killer” due to some of its unique aspects. For one, Shiba Inu is priced at just fractions of a cent. This low-price structure was designed to provide normal traders with the opportunity to own millions of tokens at an affordable rate.
The concept behind Shiba Inu is interesting, as the developers want to leverage the massive buying power of large online trading groups to drive the value of SHIB upwards. With each SHIB only costing fractions of a cent, the developers hope to push this value to $1 one day. If successful, those holding a million SHIB today could find they are millionaires tomorrow.
Of course, this approach is speculative. It’s completely new to the market which is one of the reasons developers labeled the project experimental.
Another interesting thing about Shiba Inu is its launch strategy. The project sent 202 trillion SHIB to Ethereum co-founder Vitalik Buterin as a sign of good faith. They had hoped 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, because the agency needed to sell the tokens to cash in on the bounty, it flooded the market with these tokens dropping the price by 50% in its early days.
What is Bitcoin?
Bitcoin operates as the largest and first successful Proof-of-Work network in the world. The protocol was developed by an anonymous developer(s) that goes by the pseudonym, Satoshi Nakamoto, 13 years ago. Since its launch, Bitcoin has revolutionized the financial sector.
Bitcoin demonstrated the power of cryptocurrencies and their efficiency. The protocol’s success led to the creation of an entire crypto market. Today, the crypto market has grown to trillions in value. Bitcoin has achieved an all-time high of +$60,000 and is now legal tender in multiple countries around the globe.
Bitcoin can best be described as an “electronic peer-to-peer cash system“, per Nakamoto’s famous white paper. To date, it remains the dominant force within the market, despite lacking many of the features on offer through today’s advanced DeFi protocols.
What Problems was Shiba Inu Built to Alleviate?
There are a lot of different problems that SHIB was designed to fix. For one, it was meant to allow the average trader to own millions of digital assets. This speculative angle helped drive adoption of the token by luring in investors new to the market.
The lighthearted approach of Shiba Inu is another reason why it’s so popular. While most cryptocurrencies today are all business, Shiba Inu reminds people that it’s okay to laugh when making money.
The protocol was designed to help tackle centralization as well. The meme coin market was dominated by Dogecoin for years. Shiba Inu wanted to provide those users with alternatives that offered more features and services. As such, SHIB supports full DeFi capabilities including staking.
What Problems was Bitcoin Built to Alleviate?
Bitcoin was made to provide the world with a better alternative to the centralized financial system. It replaces the core process of the bank with a decentralized network of nodes that share in the profits generated through fees. The token demonstrated the reliability and overall efficiency of blockchain technology to the world.
How Does Shiba Inu Work?
Shiba Inu operates as a Proof-of-Stake (PoS) network built atop the Ethereum blockchain. The protocol is fully ERC20 compatible which means token holders can leverage the vast array 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 enables traders to secure returns via trading. This non-custodial platform is open to enrollment, and offers lower fees than most centralized exchanges (CEX) in operation today.
SHIB is the main utility token of the protocol. Users need to hold SHIB to participate in the features of the network such as staking. SHIB was launched with no pre-mine, and the developers have chosen to not hold any of these tokens according to their posts. There were 100 billion SHIB issued at the launch of the project.
How Does Bitcoin Work?
Bitcoin operates as the world’s first proof-of-work protocol. The network leverages participants called nodes or miners that compete to verify transactions. Notably, all miners verify transactions but only one receives the reward. This strategy ensures that the state of the blockchain remains consistent and secure. During the launch of the network, Nakamoto mined around 1 million BTC. These tokens have remained untouched since that time.
How to Buy Bitcoin (BTC) and Shiba Inu (SHIB)
Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry with over 9,000,000 users, and over $207 billion in quarterly trading volume.
The Kraken exchange offers trading access to over 190 countries including Australia, Canada, Europe, and is our most recommend exchange for USA residents. (Excluding New York & Washington state)
Bitstamp – Founded in 2011, Bitstamp is one of the oldest & most trusted exchanges in the world. This exchange currently accepts Canada, UK & USA residents excluding the states of Alabama, Hawaii, Idaho, Louisiana, Nevada, & New Jersey.
Uphold – This is one of the top exchanges for United States & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.
Uphold Disclaimer: Assets available on Uphold are subject to region. All investments and trading are risky and may result in the loss of capital. Cryptoassets are largely unregulated and are therefore not subject to protection.
Binance – Best for Australia, Canada, Singapore, UK and most of the world. USA residents are prohibited from purchasing most tokens. Use Discount Code: EE59L0QP for 10% cashback off all trading fees.
Bitcoin Vs. Shiba Inu
It only takes a few seconds to see the major difference between Shiba Inu and Bitcoin. These projects have different goals 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 does have the potential for growth in the coming years.
To learn more, make sure to visit our Investing in Bitcoin and Investing in Shiba Inu guides.
David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com
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