Comparison with Dogecoin and other questions with answers

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Shiba Inu is a meme token that has become increasingly popular since early 2021. The token was created as a meme and experiment. But in the last year it has experienced a huge increase in popularity. And now she has a huge community that has invested in it. So, we will explore and explain the origins of Shiba Inu, how he became so popular and compare with him Dogecoin.

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Explaining Shiba Inu

Shiba Inu is a token based on Ethereum. It is not a coin but a token on the Ethereum blockchain. It is named after a Japanese dog breed called Shiba Inu. It was created by an anonymous person named in August 2020. Ryoshi who was of Indian descent. Another anonymous investor donated 10 Ethereums to start the project. It was created as an alternative based on Ethereum for Dogecoin which is already an alternative Bitcoin.

It has steadily recorded an increase in its value. Many popular crypto exchange such as Coinbase, Binance and DCX coin they also began to cite it because of the high demand of the community. There are currently a a market capitalization of over $ 16 billion and a stock of 1 quadrillion tokens.

Shiba Inu uses Ethereums smart contracts to create its ecosystem. They launched their crypto exchange, the so-called ShibaSwap. And there are other growing projects like multiple tokens Leash and Bone and NFT projects based on Shiba Inu.

Related article: Explained Ethereum Blockchain: how it works, its features, usage and More

How did he gain popularity?

In March 2021, the founder of Tesla and Space X. Elon Musk tweeted that he wanted to adopt Shiba Inu’s dog. This was understood as a hint that he might be interested in Shiba Inu. That tweet led to a 300% increase. in the value of the token. This has created headlines around the world.

The founders of Shiba Inu also transferred half of all tokens to crypto wallet founder of Ethereum Vitalik Buterin. This could have been done to show that he was also invested in the token. Vitalik donated 50 trillion Shiba tokens India Covid Crypto Help Fund. This helped you gain a lot of attention towards Shiba Inu. Vitalik later burned the rest of his chips in a wallet that no one could access.

Will Shiba Inu reach the dollar?

As mentioned earlier, Shiba has a large stockpile of 1 quadrillion chips. This makes it difficult for Shiba Inu to ever reach the dollar. Currently, the price is one token less than a fraction of 1 rupee or Penny.

It is difficult to come up with a price of 1 rupee. Because if the price reaches 1 rupee, the total market capitalization of Shiba Inu will be more than the total money in each cryptocurrency. If it reaches the dollar, the market capitalization would be $ 400 trillion. Therefore, it is very unlikely to reach the dollar.

What is digging and burying?

Digging is the reward you earn when you give different tokens for ShibaSwap exchange platform. This is done so that there is always liquidity or people can change and change their coins in ShibaSwap. As proof and reward that you have given your tokens to the liquidity pool, you have been rewarded ShibaSwap Liquidity Protocol (SSLP) tokens.

Burial is the reward you earn investing SSLP tokens who have been rewarded to you. Fit or locking your tokens for a while rewards you sign Bone. Bone is a Shiba ecosystem symbol that allows you to vote on the following features to add to Shiba Ina.

Also, read | 3 best ways to earn passive income from cryptocurrency

Dogecoin against Shiba Inu

Shiba Inu is often expressed as Dogecoin an alternative and killer of Dogecoin by the Shiba Inu community. although both Doge and Shiba have a cute dog as a symbol, they are very different from each other. Let’s see what the difference is.

A coin against a token

Dogecoin was created for ridicule Bitcoin and that anyone can create a coin by changing the code. It was Bitcoin alternative. That’s why Doge is a coin. Doge has a blockchain network like Bitcoin and it is the currency of his blockchain.

Shiba Inu, on the other hand, is a token. It was built on top of the Ethereium blockchain. So, this is not a coin, but a token in the Ethereium network. It cannot be used as a currency in Ethereum. This is the main difference between a coin and a token.

Smart contracts

Shiba Inu can use some of Ethereum’s features like smart contracts. They can be used to create DeFi exchanges, can be exchanged, lent to a liquidity fund or used for investment. Dogecoin misses smart contracts. That’s why he created their exchange called ShibaSwap and more tokens like Leash and Bone with more to come.

Real world value

Shiba Inu is still trying to grow and create its own ecosystem. It is in its early days and there is currently no adoption. Its value is less than a fraction of a rupee and it will take time before it reaches any close to the fame and value of Dogecoin.

Dogecoin is now accepted as a real-world payment method in certain places. This was announced on December 15, 2021 by Elon Musk Dogecoin will be accepted as payment method in the Tesla store. It is also easier to mine dogecoin and process its transaction so it is likely that we will see more outlets that will start accepting Dogecoin.

Finish

Shiba Inu has gone pretty far since its inception. In very little time it has gained a name and the community behind it is growing. It may seem unlikely that it will ever reach the dollar, but it still has a lot of potential and could grow into something bigger. We hope we were able to help you explain everything about Shiba Inu and answer some of his important questions.

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