Cryptocurrency is all the rage today, but in 2022 there's a big debate surrounding two of the most popular Shiba Inu and Dogecoin. Both are based on internet meme dogs so their popularity skyrocketed, and even Elon Musk tweeted at some point that Dogecoin would be the currency on the Moon.
But, before you throw your life savings into a "meme coin," make sure you know what you're buying. Learn more about the difference between Dogecoin and Shiba Inu below.
Dogecoin is essentially the same technology as Bitcoin. Both Dogecoin and Bitcoin use a proof-of-work consensus protocol to verify transactions on their networks. However, Dogecoin is possibly a better option for making everyday payments, as its transactions are processed faster and at a lower cost than Bitcoin transactions.
However, Dogecoin is not an exact clone of Bitcoin. Dogecoin has a much larger circulation supply than Bitcoin, and there is no maximum supply for the dog-themed cryptocurrency. With over 129 billion DOGE in circulation, the supply is far more plentiful than Bitcoin's 21 million maximum supply. In addition, 10,000 Dogecoin are minted every minute.
Dogecoin is a proof-of-work cryptocurrency, so it uses computing power to secure its blockchain in a similar way to Bitcoin. DOGE is mined with Litecoin, which means that anyone who mines Litecoin or Dogecoin can choose to mine the other coin. This allows your network power to be more stable.
Shiba Inu is a token on the Ethereum network. Fungible tokens like Shiba Inu are ERC-20 tokens, (as opposed to non-fungible tokens, or NFTs, which use the ERC-721 token standard). Since the token is powered by Ethereum, the Shiba Inu can leverage smart contracts to create decentralized finance (DeFi) products.
The DeFi sector has picked up steam this year with tokens like Uniswap, yearn.finance, and Aave skyrocketing in both price and adoption. These cryptocurrencies use smart contracts on the Ethereum blockchain to create decentralized exchanges (DEX), lending protocols, and even interest-bearing accounts.
The Shiba Inu has also entered the NFT space with Shiboshis, a collection of 10,000 NFTs themed after their pet Shiba Inu. The decentralized program uses the Ethereum network that allows NFTs to be auctioned, substituting a third party for smart contracts for transactions.
ShibaSwap allows you to deposit your Shiba Inu tokens for high returns in a variety of ways. However, this will cause an inflation of the token which can drive the price down. The platform has no clear benefits over its competitors in the space.
Which one should I choose?
At the end of 2021, Benzinga analyzed the opinion of more than 1,000 investors about which coin will see the most growth in 2022. The results where the following:
Nearly 3 in 5 respondents said Dogecoin will see a larger percentage gain than Shiba Inu by the end of 2022. So the analysis brings us to the conclusion that buying Dogecoin is the better option for this 2022.