Why are Investors Picking Dogecoin Over Shiba Inu?
Investing has definitely become an entirely new and exciting thing in the last couple of years. Cryptos, meme coins, and NFTs have made the crypto market quite thrilling and have also made millionaires in just a few months. There have certainly been some losses, but that hasn’t stopped other people from getting on the investing bandwagon. At present, the most well-known cryptos, apart from Bitcoin, include Shiba Inu and Dogecoin.
SHIB and DOGE both rely on entirely different technology, but neither is particularly distinctive or really relevant in the real world. However, these two cryptocurrencies seem to enter a direct flight. The battle between the two coins has made people aware that DOGE is eventually the more profitable investment option than SHIB. Let’s check some reasons as to why they could be correct and how DOGE still remains the most popular meme coin.
Dogecoin is Good for Beginners
Dogecoin is an excellent option for those who are just beginning since keeping DOGE for a long time could give investors a glimpse into what investing in crypto is all about. The volatility and the profits are elements of the investment; however, investors need to be prepared to endure the storms. Dogecoin price is relatively less than the other available popular cryptocurrencies, so you should definitely give a serious thought about including it in your portfolio.
SHIB’s Basic Principles don’t Match the Rapid Growth of the Company
Although Shiba Inu was able to achieve record-breaking returns recently, they are more to do with the hype surrounding crypto instead of its underlying fundamentals. The main probabilistic reason behind the price hike is its huge fan base. The more people invest in SHIB, the more risk is incurred. In the end, investors will decide to sell their tokens to earn their profits, and the cryptocurrency price will drop.
SHIB is a More of a Short Term Investment
Short-term investments like Shiba Inu can generate a large amount of cash within a short period of time. However, once they fall and crash, they usually do so hard. SHIB could be a fascinating alternative to Bitcoin. However, it could be risky. The safer option is to invest in healthy assets and keep them in the long term. Dogecoin certainly emerges as a better alternative to the Shiba Inu coin in the current times. If you already own DOGE in your portfolio, you might consider holding it for a longer period instead of converting it into DOGE to INR.
DOGE is Getting Faster
Dogecoin uses the Scrypt algorithm, which is very different from Bitcoin’s SHA256. The Scrypt algorithm allows faster creation of blocks and is significantly more efficient than BTC. If you compare SHIBU and DOGE, Dogecoin certainly has the upper hand in terms of transaction speed.
Elon Musk Has DOGE’s Back
Elon Musk is a fervent advocate of DOGE. He has even gone further and described himself as the “Dogefather.’ In some of his tweets, Musk even explained why he puts his trust in this cryptocurrency and how people will soon be able to use DOGE to buy Tesla merchandise. Once Elon Musk’s organization officially starts accepting DOGE as a verified payment medium, Dogecoin’s price, popularity, and demand is guaranteed to soar.
DOGE’s Market Position is Distinctive
DOGE’s mining model, inflation status, and its connections to Litecoin are distinctive. Additionally, in light of the environmental concerns surrounding the impacts of crypto mining, experts are forecasting that Dogecoin will move towards a proof-of-stake-based validation model that allows coin holders to verify transactions, thereby minimizing the adverse effects on the environment.
By now, you must have understood why investors are inclined towards Dogecoin and not Shiba Inu. But since investing is a personal choice and depends on an individual’s risk appetite and investment goals, you can pick either cryptocurrency that you deem can give you better returns.