It’s a dog-eat-dog world, but should you invest in any of these cryptocurrencies?

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Key points

• Both Dogecoin and Shiba Inu have market capitalizations to compete with the big companies.
• Dogecoin now has some utility and strategic direction.
• Shiba Inu raises many red flags.

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Dogecoin Doppelganger (DOGE) Shiba Inu (SHIB) It entered the top 10 cryptocurrencies by market capitalization this week. The two are almost neck-and-neck on the crypto charts, although SHIB just got ahead of DOGE.

Let’s dive into a comparison of the two. CRYPTOCURRENCIES and find out why they all bark and don’t bite.

Dogecoin vs. Shiba Inu

What doecoin and Shiba Inu have in common that they are both based on the small bear-like Japanese breed of dog. Both have communities of loyal fans, backed by a culture of light-hearted memes and active social media channels.

Unfortunately, neither is of much use in the real world. You can use them to pay for certain things, and the Shiba Inu has a decentralized exchange called ShibaSwap (which is mostly useful for generating more SHIB-related tokens). But their lack of functionality hasn’t stopped them from taking the crypto world by storm. Each has a market capitalization similar to a large multinational company.

This is how they stack up:

About Dogecoin

Dogecoin was originally founded as a joke, intended to make fun of the way people were investing in cryptocurrencies they didn’t understand. To the surprise of many people, the coin attracted a large following. New investors found the not-too-serious approach easier to use than other more serious cryptocurrencies, and the Dogecoin community flourished.

The founders walked away from the project in 2015 due to concerns that Dogecoin had attracted too many unsavory characters. But the lack of leadership did not deter investors. More recently, in August, reformed the Dogecoin Foundation which has some heavy hitters on the board and lays out a strategic roadmap for the future.

It remains to be seen whether Dogecoin can successfully transition into a serious project or whether becoming more mainstream will take away some of its charm. But at least there is a chance that Doge can use its incredible popularity and build a reputation as a viable digital payment. Given its high market capitalization and the competitiveness of the digital payment market, that still doesn’t necessarily make it a good investment. But it is a start.

About Shiba Inus

Shiba Inu uses a lot of the same language as Dogecoin, but it wasn’t created for fun, it was created to take advantage of the success of Dogecoin and make money. Not only does it have an anonymous founder, who should be a Red flag in any investment, but there are also several things about currency that just don’t ring true.

For example, the project talks about wanting to help Shiba Inu rescue centers, but not a single penny from Shiba Inu activities goes to help dogs in need. Instead, the Shiba Inu website simply encourages people to donate through Amazon Smile.

Similarly, the Shiba Inu whitepaper dedicates a full page to the founder of Ethereum (ETH). Vitalik Buterin and his decision to donate $1 billion in SHIB to India’s COVID relief fund. Shiba Inu introduces Buterin as a “friend of Shib” and previously gave the crypto legend 50% of his tokens as a marketing gimmick.

But Buterin isn’t interested in these unsolicited coin giveaways, saying he doesn’t want the liability. He doesn’t blame SHIB for trying to put the best spin on the situation, but as an investment, there are too many things in their advertising that don’t quite add up.

There are better investments out there

we are in the middle of a pet coin frenzy, and people buy anything with Doge, Shiba, or Inu in the name. The success of Dogecoin and Shiba Inu means that people are treating these coins as a kind of crypto lottery ticket. And given how easy it is to create a coin and spin a dog-related story (with limited regulation to ensure the story is true), more Dogecoin knockoffs are flooding in. cryptocurrency exchanges daily.

I understand why you might want to invest in cryptocurrencies like Shiba Inu and Dogecoin. Stories of huge potential returns are extremely tempting. And sure, some people have made money. But people make money in Vegas and that doesn’t make gambling a good investment.

The problem is that if you invest in a cryptocurrency that has no fundamental utility, all you are doing is hoping that someone else will buy it from you for more. The price can continue to rise, but it can also easily drop for no reason, and if you buy at the maximum, you will lose money.

A better bet? Instead of looking for short-term gains, look for coins that can build long-term wealth. Focus on cryptocurrencies that have a purpose and a management team you trust. Take the time to understand what block chain technology can do, and weigh the pros and cons of investing in cryptocurrencies versus other types of investments. The desire to make your money work for you through investments is commendable, and there are several lower-risk routes you can take to reach your goals.