We are sure you have heard about Dogecoin even if you aren’t a crypto-fan. So, what is this DOGE, why has it become so popular, and what connection does it have with SHIB? Let us check in detail.
When you are looking for a DOGE to BTC exchange, you will find out that DOGE is widely available. However, its value cannot be even compared to BTC, and experts say, it might never even approach the BTC price. To understand why DOGE might not be the best option for long-term investment, you need to understand what the project is about.
Dogecoin Is Not a Joke Anymore
Dogecoin was founded in 2013 by two engineers, Billy Marcus and Jackson Palmer. The coin uses a popular internet meme as its logo featuring Shiba Inu, a Japanese dog breed. Initially, the project was a joke. However, with the support of Elon Musk and a quickly developing community, DOGE soon started making waves in the market. Now, its price has grown significantly, however, it has never crossed the mark of 1 USD per one coin.
The coin is inflationary by its nature. While the majority of coins are deflationary (their supply is limited), the supply of DOGE is unlimited. So, the coin can be mined forever, as long as there are those who are willing to use it.
Also, the Dogecoin project doesn’t have any application in the real world. It doesn’t support smart contracts or DeFi and doesn’t have any inherent value. The currency is mostly used to tip users on Reddit and Twitter.
However, its value has grown significantly when Elon Musk tweeted about it naming DOGE his favorite cryptocurrency. Since then, the DOGE price is closely connected to Elon Musk and his reactions in social networks. The cryptocurrency prices in Alligat0r are reflected in real-time mode, so if you are interested, you can check them to get an idea of how much the coin value fluctuates.
DOGE and SHIB
Until recently, DOGE didn’t have any competitors in the niche. However, in August 2020, a new coin was launched. The coin is using the same dog breed’s logo – Shiba Inu. SHIB is a decentralized cryptocurrency created by an anonymous person called Ryoshi.
SHIB calls itself a Dogecoin killer. We would not be so straightforward but SHIB has been attracting a lot of attention since its launch. So, the coin officially supports different charity missions, including the support of the famous now Shiba Inu dog breed. Vitalik Buterin and Elon Musk are among the avid supporters of the new coin which also adds to the SHIB popularity.
SHIB is not just cryptocurrency. Its developers are actively working on a ShibDex that shall bring more value to the project.
To Buy or Not to Buy?
Both DOGE and SHIB are quite specific coins. Being open, we would choose SHIB to invest in both the long and short term. Why? It is not limited to being a memo only. Its unique applications are pretty attractive and promising in the long run. In the short term, this coin is extremely volatile, so day trading can also bring significant benefits. Moreover, it positions itself as a “good boy of the cryptocurrency market” which is just nice.