Dogecoin vs Shiba Inu: Main Differences and Similarities

Shiba Inu  Doge is a dog-themed couple that occurred as a joke, won the hearts of communities and the support of such entrepreneurs as Elon Musk and Mark Cuban. Because of these personalities, Dogecoin’s value got a 7,000% increase in 2021.

Prices of both are volatile, and the one of Dogecoin plummeted drastically in mid-2021 from its all-time high of $0.7. Yet, it is still popular thanks to its community. SHIBA is considered its ‘knock off’ and yet it is more advantageous from the technical point of view. So, in order not to reveal all the cards hazardously, here’s a full overview of what you need to know about Dogecoin vs Shiba Inu.

What is Dogecoin (DOGE)?

In 2013, Dogecoin was issued as a hard fork from the Litecoin blockchain. It found fans and even built a community around, which boosted the price and the evolution of the project. In fact, this very coin proved how crucial communities are for this particular domain, even more than traditional investors. 

Also, back at a time, the token was a game-changer in the world of coins as serious investments. It occurred as the meme token, produced by humor and talk in socials. The token was actually a joke and an innocent alternative to BTC and the likes. Its creators, Jackson Palmer, the Adobe project manager, and Billy Markus, the IBM engineer, were inspired by the Doge meme of a Shiba Inu breed of dog with the classic Comic Sans text font. In Japanese, ‘inu’ means ‘dog’. 

We won’t dive deep into Shiba Inu Doge mining here, but let’s outline a few important facts. First, there’s no supply cap for this coin, meaning there are no limits for the number of tokens to be minted. This, in due turn, makes Dogecoin an inflationary currency. At present, the circulating supply is more than 100 billion. The current worth constitutes below one buck, to be clearer – at the $0.10 price point. To reach the one-buck mark is a challenge due to its super vast supply.

In the crypto world, utility is super important. The coin was criticized for the lack of it. But it did not stop the coin’s development in 2021. This very coin was created for no purpose, but as a value carrier with the appeal to the masses. But still, some usage exists. For example, it serves as a means to tip on Twitter and Reddit to those users who posted something likable. Also, it’s a payment method. To illustrate, Tesla allowed acquiring accessories with this meme token. 

What is Shiba Inu (SHIB)?

You might get confused since Dogecoin vs Shiba Inu use this Shiba Inu meme. But Shiba Inu is considered as a Dogecoin’s counterpart. We’ll explain everything you need to know about it here. In simple words, SHIB is a rival to Dogecoin. What makes it different is that it doesn’t have its own blockchain but rather runs on top of another blockchain’s architecture. 

With Dogecoin, the logic is the following: Litecoin, a Bitcoin spinoff, had a fork called Luckycoin. Dogecoin was forked from Luckycoin. In the meantime, SHIB represents an ERC-20 token that’s operating on the Ethereum blockchain.  SHIB is also a meme thing – crypto stemmed from Internet memes, which also found a plethora of devoted fans.

The token was created in late summer 2020, and in 2021 it has been competing with Dogecoin for leading the pack amongst dog-themed cryptocurrencies. And it has done it well. In autumn 2021, the coin hit its all-time high price point of $0.00008616 – a surge of over 150% million since late autumn 2020. That’s a great factor for the token coming from nowhere.

Doge vs Shib: Main Difference

There are three main aspects that make Dogecoin vs Shiba Inu different. 

The story behind

Dogecoin happened to be the first coin released as a joke to mock investment buzz around the crypto market. The venture was initiated in 2013 and took this type of dog breed as its symbol. The blockchain is pretty solid here. It brags a great infrastructure and works by the Scrypt proof of work mechanism, meaning it is more scalable than Bitcoin.

Many ‘cryptopreneurs’ liked the coin, which caused its unprecedented 300-percent growth in the first weeks of trading. Also, many saw it as a new coming alternative to BTC when it comes to business and consumption. 

Both Shiba Inu coin vs Dogecoin are designed to function as a peer-to-peer payment system without any central government, corporate vertical, or top management deciding which direction to head to with the project. The concept is as clear as a day – it’s all community-driven.

The core difference between both is that SHIB is an ERC-20 token operating on the Ethereum blockchain. This makes it more advantageous as it can work with multiple DeFi ventures that are also carried on the Ethereum blockchain.   

Speed and convenience

Compared to many of its counterparts, Dogecoin is doing pretty well here thanks to the Proof of Work consensus protocol. Unlike Bitcoin with its SHA256, this one banks on the Scrypt algorithm. It is way faster and enables a way faster block creation process. To illustrate, it takes 1 minute to create a block with Dogecoin, while Bitcoin allows 10 minutes and Litecoin – 2.5 minutes.  

With Shiba Inu, it’s a bit different situation as its block release and transaction depend on how the Ethereum blockchain works these days.  As an ERC-20 token, SHIB works by a proof-of-work mechanism that ensures a great transaction rate as Dogecoin does. But when the Ethereum network migrates to a proof-of-stake mechanism, SHIB might outperform DOGE in this Shiba Inu coin vs Dogecoin race.

Supply and popularity

Doge found great support from the community and celebs. But the price is more defined by supply and demand. It’s a common practice among cryptos to cut supply to generate scarcity. Dogecoin committed to building a reliable peer-to-peer payment network by implementing an inflationary mechanism. This means investors will be slow to hold the token and retrieve significant sums out of circulation, and therewith, transactions should be low in the long run.

Dogecoin issues as much as 5 billion DOGE per year, providing enough coins to back up transactions and allowing DOGE to achieve its goal. Just like with fiat money, the market will dictate how much DOGE should be issued into the network.

In this Shiba vs Doge competition, the team of Shiba Inu took another course in terms of the supply mechanism. It has a circulating supply of 500 trillion and an overall cap should make no more than 1 quadrillion. It’s important to mention that a huge supply volume was burned by Vitalik Buterin for no clear reason. 

The official project’s website claims that the remaining amount was absolutely concealed in the Uniswap exchange, which means traders of this crypto should do business on the open market.

Doge vs Shib: Main Similarity

Doge Shiba Inu are dog-themed cryptos, and the worth of both is just a fraction of a buck. But they have something more in common than the price and symbol. And the biggest similarity is blockchain. At present, there are about 10 000 cryptos globally, and each uses some piece of the essential blockchain technology. 

Where to store Dogecoin and Shiba Inu?

The best possible option to store cryptos is to get a secure hardware wallet. It is not safe to keep funds on an exchange. An exchange is still a third party that has access to the assets, which makes accounts a great target for cyber hackers. There were precedents in the past where traders lost their coins due to hack attacks. 

Storing assets in software or hardware crypto wallets is a secure way to keep them safe. Software ones are free of charge, use encryption with a PC program, etc. But again – they can be hacked. Hardware options are the most optimal solution as they are simply kept offline, on a device. This makes it hardly possible for any third party to access it since the Internet is removed from the equation. 

How to buy Dogecoin and Shiba Inu?

Like any other crypto, one can purchase Shib vs Doge in five simple steps. Take a look:

1. Decide on the amount of investments to put in the token.

Needless to say that investing in such assets is pretty much risky. Dogecoin’s worth is so volatile due to supply so it is way riskier. First and foremost, take into account your current financial situation, risk tolerance, and investment portfolio. Seasoned traders do not recommend putting in more than you’ve allowed yourself to lose. 

2. Pick a Crypto exchange. 

To buy any crypto, you need to have an account within a crypto exchange. However, not all exchanges ask for creating an account. Some don’t and still provide the best possible service – like Godex.io. The process includes service fees and exchange rates you should consider when swapping dollars for the coins. Also, you can use an investment app, but some do not allow transferring coins from the app. 

Both Shib vs Doge are quite popular, yet not all exchanges work with it. So, find out if the one you’re about to use avails DOGE and SHIBA for purchase.

3. Pick the payment method.

Before doing any crypto manipulation, make sure you have money on your account. In most cases, such platforms allow depositing funds from a checking or savings account. Wire transfers and PayPal ones are also a common practice. Some exchanges accept credit cards. But keep in mind that a credit card issuer will think that the money is a cash advance and will charge extra fees and a higher annual percentage rate. As a result, investing in crypto becomes costlier and riskier.

4. Make an order for the coin.

With money on your account, you can buy the coins. On the platform, find the coin’s name or indicate its ticket symbol. Then choose the trade type and put in the dollar equivalent you’re willing to invest. Or, indicate the amount of coins you’d like to purchase. Once the order is in place, it is supposed to go through instantly. Trading processes are not limited by trading hours.  

5. Make sure the storage option is safe

We’ve already mentioned the best possible way to keep the funds safe. When using an exchange, they keep it automatically on its account or crypto wallet. They might be subject to hackers. That’s why it is recommended to transfer Shib vs Dogecoin to a ‘safe place’ – a hot or cold wallet, software or hardware respectively. 

Conclusion

Both tokens are built around the hype. They all have applicable infrastructures, yet there’s no particular value from each to the crypto world. However, these are community-driven ventures, and people today decide a lot. From one point of view, Dogecoin is thought a stronger investment opportunity, especially when SHIBA is considered as something of a ‘knock off’. 

In the meantime, SHIBA has more technical benefits, and the team behind the project has a few solid plans, including joining the domain of NFT. So, when planning to put in funds into Shib vs Dogecoin, be always aware of current developments through communitites on socials and relevant trusted platforms.  

FAQ

Will Shiba Inu be better than Dogecoin?

Both ventures are risky and Doge vs Shiba Inu are volatile, so take this into consideration before jumping into the game. However, Dogecoin is deemed less risky as it has a more significant track record and got more recognition. SHIBA might deliver more opportunities for revenue over time.

Is Dogecoin a good investment?

Just like SHIBA, this one has not a big deal of intrinsic value. But again – the community might be changing the situation. Dogecoin is still a risky investment. 

Can Shiba reach Dogecoin?

In 2022, SHIBA can make it the ninth largest cryptocurrency after Ripple in terms of market value. If looking through math lenses, it is quite possible that Shiba Inu can outshine Dogecoin in terms of market value in this Doge vs Shiba Inu competition.

Disclaimer: Please keep in mind that the content of this article is not financial or investing advice. The information provided is the author’s opinion only and should not be considered as direct recommendations for trading or investment. Any article reader or website visitor should consider multiple viewpoints and become familiar with all local regulations before cryptocurrency investment. We do not make any warranties about reliability and accuracy of this information.