What is a Shitcoin?
A Shitcoin is a cryptocurrency with no utility or distinguishing features. Based on one’s subjective opinion, it is regarded as a bad investment. The term is also applied to coins that serve no purpose other than to serve as a means of exchange.
Key Takeaways
• Many merchants are beginning to accept Dogecoin as a form of payment, although it is still far from the level of adoption required to be used as an actual currency substitute.
• Even though Dogecoin began as a joke, Dogecoin is very similar to Bitcoin. It is a digital currency that can be used to send money anywhere in the world.
• When a Doge wallet was hacked in December 2014, a total of 21 million Doges (worth $12,000 at the time) were stolen, the Dogecoin community raised a total of $13,000 to reimburse the users who lost their Doges.
When the value of a cryptocurrency falls, it is referred to as a “shitcoin” (this can happen because people lose interest in it or because of price speculation and so on).
SEE ALSO: Is Dogecoin An ERC20 Token? – All You Need To Know
Dogecoin, Bitcoin, What’s The Difference?
According to the definition of a shitcoin, which is a cryptocurrency with no utility or unique features, Dogecoin is a shitcoin because, aside from being a means of exchange, the coin has no other truly unique features.
Isn’t it safe to say, based on the definition of a shitcoin that Bitcoin, the first cryptocurrency, is also a shitcoin?
Bitcoin is a peer-to-peer online currency, which means that all transactions take place directly between equal, independent network participants, with no need for an intermediary to allow or facilitate them.
This is the function that Dogecoin serves. Both Bitcoin and Dogecoin use a proof of work consensus algorithm, with the only difference being the coins’ environmental friendliness.
SEE ALSO: Dogecoin Mining Essentials: How to Mine Dogecoin on PC
SEE ALSO: How To Accept Dogecoin As A Payment System On A Website
According to TRG Datacenters, Bitcoin consumes 707 kWh per transaction, whereas Dogecoin consumes 0.12 kWh per transaction.
The Real Question: Isn’t Bitcoin a Shitcoin?
This is a tough question to answer, but it all comes down to perspective. If your definition of shitcoin is a coin that has no other use case other than facilitating transaction payment, then Bitcoin and Dogecoin are both shitcoins.
If you define a shitcoin as a coin with no monetary value, then the two coins in question are not shitcoins.
Apart from the fact that Dogecoin was created as a joke, many powerful people have continued to support the coin.
In addition to Elon Musk, we have Mark Cuban, the owner of the Dallas Mavericks basketball team, who has made Dogecoin a means of payment for Dallas Mavericks game tickets.
This has given a fictitious “meme” coin a lot of credibility. The coin also made a name for itself by being listed on major cryptocurrency exchanges such as Coinbase and Binance.
Bitcoin is now regarded as a store of value, with many notable institutional investors such as MicroStrategy, Tesla, ARK investment, and others taking notice.
Dogecoin was a fork of Litecoin created in 2013 by Billy Markus and Jackson Palmer. It has ShibaInu on its logo because Dogecoin is based on the Shibainu meme.
Although it began as a joke, Dogecoin is very similar to Bitcoin. It is a digital currency that can be used to send money anywhere in the world.
Elon Musk, the man who was bullied as a child and went on to found Tesla and SpaceX, is one of its “fans.” He has tweeted several times about Dogecoin.
You can’t deny that Dogecoin has its appeal, whether he’s trolling or not. So, let’s take a closer look to see if this cryptocurrency is a shitcoin or a good coin.
Why Dogecoin is a Shitcoin
Some of you may believe Dogecoin is a shitcoin. There is no internal value, it’s a meme coin that started off as a joke.
Furthermore, there isn’t much to see on Dogecoin’s official website. It explains what Dogecoin is, where you can get wallets, and how you can get free Dogecoins. To earn free Dogecoin, visit a site like Idle-Empire
while other cryptocurrencies such as Ethereum are releasing Ethereum 2.0, Litecoin is releasing MimbleWimble, and Cardano is set to release the Shelley hard fork, Dogecoin’s development is stagnant.
Furthermore, investing in Dogecoin is somewhat limited from an investor’s perspective. Why? Dogecoin’s total supply is uncapped and it witnesses inflationary pressures.
SEE ALSO: 15 top US Companies that Accept Dogecoin as Payment
Why Dogecoin is a Good Coin
Dogecoin, on the other hand, is a good coin. When the Doge wallet was hacked in December 2014, a total of 21 million Doges (worth $12,000 at the time) were stolen, the Dogecoin community raised a total of $13,000 to reimburse the users who lost their Doges.
While others are preoccupied with developments, Dogecoin simply exists. It does not become frightened. It continues to function as a jovial coin. People continue to contribute free Dogecoins so that others may benefit. As a result, it is user-friendly for cryptocurrency newcomers.
Dogecoin has a defined audience that is not based solely on hype. If you buy Dogecoins, you know you want them; you’re not doing it to get rich. Who would have guessed that it would rise from an all-time low of $0.00008690 to a high of $0.01758609? As a result, there is still a chance for you to make a profit.
Valuing Dogecoin
It’s debatable whether Dogecoin is a shitcoin or a good coin. There are currently very few use cases for the token.
Though more merchants are beginning to accept Dogecoin as a form of payment, it is still far from the level of adoption required to be used as an actual currency substitute.
“These days, it’s all one big marketing ploy,” said Mike Bucella, general partner at BlockTower Capital.
Unlike rival cryptocurrencies such as Ethereum, which allows programmers to build applications on their platform to do things like lend and borrow money, Dogecoin does not allow anyone to do much.
Dogecoin isn’t exactly a dependable store of wealth, either, because this typically necessitates a certain level of long-term faith in the coin and the blockchain upon which it’s built.
“If you look at the Dogecoin protocol itself, It seems no one has added new functionality or code to it in the last several years,” Birla said. “Dogecoin does not have a dedicated development team.”
Given these constraints, the Dogecoin rally appears to be purely speculative. Dogecoin has value because other people believe it does. And they believe that someone else will pay a higher price to buy it from them.
“We see Dogecoin rising in price as a result of low liquidity and extreme growth in the network,” Greenspan explained. “Once the network reaches critical mass, I don’t believe that type of growth can be sustained.”
But All Is Not Lost For Dogecoin’s Future
“The real value is in today’s meme-driven culture, and doge represents the network value of memetics, which could be enormous,” Bucella explained. “
If at some point, the doge community decides to implement a burn or new supply mechanism via a protocol hard fork, then this value has a better chance of being retained in the long run.”
What is the Price of Dogecoin Today?
Dogecoin is trading within its range today, but could either trend upwards or downwards depending on market pressures.
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Frequently Asked Questions and Answers (FAQ)
1. Is Dogecoin worth buying now?
Dogecoin is a risky investment and as such, you should be ready to hold it for years if you plan to make any profit from it as an investment.
2. Will Dogecoin ever reach $100?
Dogecoin reaching $100 will take a very long period as this coin is presently still trying to find its ground and is still having a hard time convincing some experts that it has potentials far from a shitcoin.
3. Is it safe to buy Dogecoin on Robinhood?
Yes, it is safe to purchase Dogecoin on Robinhood.
Final Thoughts
Trying to perceive Dogecoin as a legit coin with potentials might be hard for many to do as the coin was created for fun and memes.
But recently, the Doge has begun to make waves in the crypto space. Hence who knows what the future might bring concerning this coin. It may very well turn out to surprise many years from now.
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