Before we get into the differences between Bitcoin and Doge, we need to know what the term “Shitcoin” means.
A Shitcoin is a cryptocurrency that has no utility or unique features. It is considered a bad investment based on one’s subjective opinion. The term is also used to describe coins that do not serve any purpose other than being a means of exchange.
A cryptocurrency is also termed a “shitcoin” when it has diminished in value (this can happen because people lose interest in it or because of price speculation and so on).
Is Dogecoin a Shitcoin?
Dogecoin (DOGE) is based on the popular “Doge” Internet meme that features a Shiba Inu on its logo. The open-source digital currency was created by an IBM software engineer, Billy Markus from Portland, Oregon and Adobe software engineer, Jackson Palmer from Sydney, Australia. Dogecoin’s creators envisaged it as a fun, light-hearted cryptocurrency that would have greater appeal beyond the core Bitcoin audience since it was based on a dog meme. Tesla CEO, Elon Musk posted several tweets on social media about dogecoin and how he plans to take the coin “to the moon.”
Dogecoin emerged in 2013 as a joke. While it was intended to be a joke, it led to some use case as its large supply and low price facilitated efficient micro-tipping content on social media. Dogecoin has 1-minute block intervals making it faster than other blockchains. There is no cap to the supply of coins and thus the coin can inflate infinitely.
In summary, Dogecoin is a cryptocurrency that is used as a medium of exchange. Since Elon Musk’s endorsement, dogecoin has been trading record numbers and giving astronomical returns to investors in a short period. It currently ranked #7 by market capitalization.
Dogecoin, Bitcoin, what’s the difference?
Going by the definition of what a shitcoin is, which is a cryptocurrency that has no utility or unique features, it is safe to say that Dogecoin is a shitcoin because asides from being a means of exchange, the coin has no other real unique features. Also going by the definition of what a shitcoin is, isn’t it safe to say that Bitcoin, the first-ever cryptocurrency is also a shitcoin?
Bitcoin is a peer-to-peer online currency, which means that all transactions happen directly between equal, independent network participants, without the need for any intermediary to permit or facilitate them. This is the same function that dogecoin performs. Both Bitcoin and Dogecoin operate on a proof of work consensus algorithm with the only difference being the eco-friendliness of the coins. Data from TRG Datacenters shows that bitcoin consumes 707 kWh per transaction while dogecoin consumes 0.12 kWh per transaction.
The real question: Isn’t Bitcoin a shitcoin?
Well, this is a tricky question to answer but it all stems from perspective. If your definition of shitcoin is a coin that does not have any other use case asides from facilitating payment of transactions, then yes, Bitcoin and Dogecoin would fall in the shitcoin category. If your definition of a shitcoin is a coin that people place zero value on, then the two coins in question are not shitcoins.
Asides from the fact that Dogecoin was created as a joke, many influential people have continued to back the coin. Other than Elon Musk, we have a notable serial entrepreneur and the owner of the Dallas Mavericks basketball team, Mark Cuban, who made dogecoin a means of payment for Dallas Maverick game tickets. This has given a supposed “meme” coin so much credibility. The coin also made its mark by listing on big cryptocurrency exchanges like Coinbase and Binance. Bitcoin today is also regarded as a store of value that is gaining recognition by many notable institutional investors such as MicroStrategy, Tesla, ARK investment and so on.
What is your take on this? What would you describe Bitcoin as a Shitcoin? Comment below.