Bitcoin is the largest cryptocurrency in the world, attracting attention from nearly every global leader and financial executive. Shiba Inu is a project on the Ethereum network, hoping to build a decentralized finance (DeFi) revolution. Both are some of the most discussed projects in the crypto world. How do they compare?
Blockchains vs. DeFi Applications
Blockchain is the system that Bitcoin uses to power its network. Blockchain is a system that uses a tamper-proof ledger to execute and verify transactions. All transactions are stored on the ledger and help mitigate fraud.
Because blockchains provide a public record of transactions, they can be very useful for sending and receiving payments. The payments realm is where a majority of blockchain applications exist. More retailers are beginning to accept cryptocurrencies as a form of payment. One estimate states that 36% of all small-to-medium businesses currently accept Bitcoin. On a large scale, this trend could permanently change finance and payments.
DeFi can be used to explain a variety of systems in the crypto sphere that relate to privacy and security. One example is wallets. Wallets are a DeFi tool that allow individuals to hold currencies securely and separate from a centralized exchange.
DeFi focuses on security and privacy. Because of this, many applications revolve around these concepts. A major potential application for DeFi is insurance. DeFi could be used to securely track individuals’ insurance. This system would protect against hacks and other activity. It could also automatically create claims, reducing both paperwork and time inefficiency.
What Is Bitcoin?
Bitcoin was created in 2008 by the anonymous entity Satoshi Nakamoto. It was created to provide a secure and decentralized payment system. It is the largest cryptocurrency in the world and supports billions of transactions every day.
It operates on a peer-to-peer network, allowing users to send BTC to anyone else on the network. Users send BTC to a wallet address, which is a string of numbers and letters that determines where the BTC will go. However, Bitcoin needs a way to verify all these transactions to help prevent fraud.
This is where Bitcoin’s proof-of-work consensus model comes into play. Anyone can contribute to the Bitcoin network by providing computing power. This computing power is used to determine which transactions are legitimate.
What Is Shiba Inu?
On the high-risk end of the cryptocurrency spectrum, Shiba Inu (SHIB) is an ERC-20 token that operates on the Ethereum network, meaning that it — unlike Bitcoin — does not have its own blockchain. It was created by the anonymous Ryoshi. SHIB is a memecoin with a huge community of investors.
A Shiba Inu is a breed of dog. Specifically, it is the breed made famous by Dogecoin (DOGE.) Shiba Inu is hoping to capitalize on the fame and hype of Dogecoin.
Shiba Inu is used to power the decentralized exchange (DEX), ShibaSwap. It uses SHIB tokens to allow users to stake, provide liquidity and swap with other tokens. ShibaSwap provides little novelty to the DeFi realm and has minimal volume. Allocation of capital between ShibaSwap and other DEXs may suggest the market views ShibaSwap’s smart contracts as more vulnerable to malice.
Bitcoin vs. Shiba Inu Pricing
Use Cases of BTC vs. SHIB
Because Shiba Inu does not have its own chain, most of its uses are restricted to the limits of the Ethereum network. However, the token does offer products to back up the hype.
The main use of SHIB is as a form of payment. While not many stores currently accept SHIB as a form of payment, a handful do. Places that accept payment range from consulting businesses to clothing stores. If SHIB continues to gain popularity, more stores may begin to accept it as a form of payment.
Bitcoin has its own network and powers a large amount of tasks. It is also intended to be used as a form of payment, but because of its size, it is being used in much larger transactions.
MicroStrategy Inc. (NASDAQ: MSTR) is a company looking to change the way corporations hold money. Over the past few years, it has been moving its corporate treasury reserves into BTC. This move has proved to be a valuable investment, netting the company over $2 billion. It is looking to help other companies move treasury reserves into BTC.
Where to Buy Bitcoin and Shiba Inu
Bitcoin and Shiba Inu are 2 of the most popular cryptocurrencies. Because of this, they are available on nearly every major exchange and brokerage. Brokerages are generally easier to navigate and are beginner-friendly. However, a handful of brokerages particularly stand out due to ease of use and focus on education.
Coinbase Global Inc. (NASDAQ: COIN), eToro and SoFi Technologies Inc. (NASDAQ: SOFI) are the easiest brokerages to use. Opening an account usually requires a phone number or email and at least 1 form of identification. Some exchanges even allow for trading the same day you open an account. However, each brokerage is slightly different, so make sure to research and decide which brokerage best suits your needs.
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What Has More Room to Grow: BTC or SHIB?
If you strictly look at market cap, SHIB has more room to grow. Its $11 billion market cap is nothing compared to BTC’s $1 trillion. If investors begin to move their funds into SHIB, there could be even more surges in price. However, this change is extremely unlikely due to the overall uses of SHIB.
In terms of uses and adoption, BTC is much more likely to be used in the future. It is already being used by corporations and institutions. It also supports many more transactions than SHIB. For long-term growth, Bitcoin may be a better option than SHIB.
Current Cryptocurrency Prices
So, What’s Better: Bitcoin or Shiba Inu?
Bitcoin and Shiba Inu are 2 different cryptocurrencies that are unique in their own respects. Shiba Inu is derived from Dogecoin and is a much more speculative investment. Bitcoin is the largest cryptocurrency and is already being adopted by corporations and institutions.
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About Caden Pok
Caden has been involved with crypto since 2018, when he began investing, trading, and mining tokens. He took part in undergraduate research studying cryptoeconomics at the University of Michigan, where he will graduate Phi Beta Kappa with a bachelor’s in economics in 2025. He is experienced with DeFi technology and multiple blockchains, currently investing in Ethereum and Bitcoin.