Saying at the beginning, why we are writing this crypto researched-based article? It is a common catchword in the SHIBA INU community that SHIBA INU is the best crypto, and it will beat Bitcoin one day. In this article, we scrutinized some fundamental factors to give you a neutral view of whether Shiba Inu can actually beat Bitcoin and SHIBA Inu can be a number one coin. This Bitcoin VS Shiba Inu review has been created answering these questions in detail.
At the outset, we are talking about such a point where Bitcoin is the sole dominant. Even there are no other coins closest to Bitcoin, let alone SHIB Coin. However, we suspect if any cryptocurrency will come into the perimeter of BTC down the road.
Crypto Comparison Chart: Bitcoin VS Shiba Inu
|Market Cap||704B USD||2.9B USD|
|Fully Diluted Market Cap||788.136,656,865 USD||6,312.405,132 USD|
|Volume||40,054,182,626 USD||339,167,177 USD|
|Circulating Supply||18,768,087.00 BTC||394,796,.00B SHIB|
|Total Supply||21,000,000 BTC||1,000,000,000,000,000 SHIB|
|Social Engagement||307,217,022,284 (Last 6 Months)||1,992,386,328 (Last 6 Months)|
Put simply, you would have been a millionaire if you invested in Bitcoin in 2009, at the dawn of Bitcoin.
Suppose, you invested $100 in Bitcoin in 2010 when bitcoin’s price was 10 cents, you would have been able to buy about 1,000 bitcoins today. So now you calculate how much money you would own today?
We think you have gotten aware of the point; the obvious topic we are going to describe is…………….
Store of Value
The dominative nature of Bitcoin is that it has a store of value, one significant point among many. So, what does the store of value refer to? Before leaning fully onto the definition of the store of value, we want to allude to a feature in brief, which is that an item’s store of value never depreciates over time. So we can say, an item would be considered a store of value if its value is either stable or increases over time but doesn’t depreciate.
Summary of store of value
- Store of value makes your investment low risky. Along with that the investment offers you a perpetual lifespan and creates infinite demand.
- Regardless of time’s eternal flow, the value of a currency, commodity, and assets remains stable even if these assets, currencies, or commodities are stored or retrieved at a later date.
- Owing to no deterioration in the value of Gold, Gold is widely regarded as the ultimate safe-haven asset.
Detail on Store of value
Due to the fact of no deterioration in value, assets, commodities, or currencies with store of value can be retrieved or stored at a later date with stability. We can also say, to enter this category, the item acquired should over time, either be worth the same or more. Since the self lives of gold and other metals are significantly perpetual, they are considered as a store of value.
Such as, you can’t retail fruits as a store of value, because they decay or rot over time. That’s why they are worthless as a store of value.
As for examples, we are now writing about some items that have a store of value.
Currency is of the top priority as a store of value as citizens use them for different transactions. A country’s economy cannot be healthy as long as it doesn’t have a stable currency. There is no use saving, or earning that currency, which has no stability and is poor as a store of value. So, as a gist word we can say, a nation’s money must be a credible store of value in order for its citizens to engage in labor and trade, save money, and spend it.
Back in the day, many nations used gold, silver, or other precious metals as their native currencies. Why so? Definitely, it is because of their store of value, relative ease of transport, and ease of exchanging. There is an instance we saw up until 1971, the United States was on a gold standard, and owing to that fact; dollars were redeemable for a specific weight of gold.
Because of the features like scarcity, divisibility, decentralized security network, and holder of transfer of value, bitcoin and ethereum nowadays are being considered as a store of value.
|Features of Money||Fiat (USD)||Metal (Gold)||Crypto (Bitcoin)|
If you look at the countries with advanced economies, you will see their local currency is considered as a store of value but things may take a turn in worst-case scenarios. But what things are considered to measure store of value change depending on cultures and countries. We can name the Swiss franc, the Singaporean dollar, the Japanese yen, and the U.S. dollar as stable currencies that are resistant to hyperinflation.
As a store of value, gold, silver, real estate, and fine art have also proved several times. During the time of national calamity, financial breakdown, we saw a skyrocketing price of Gold that earned it a reputation. Even though fluctuation in their value is a common affair we see, they can be still counted on to retain some value in almost any scenario.
Why fiat currencies are a horrible store of value?
Fiat currencies have failed as a store of value, meaning they are not compatible to be held over a longer period. But they are much more efficient for day-to-day transactions. Steven Hanke, an economist, cautioned those who think the world’s reserve currency protects the dollar from being devalued. It is being said because, according to the Fed’s Consumer Price index, $1 in 1913 would buy you roughly what would require $26.15 in 2020.
Inflation is the core reason that led to this decline. Enforcement of monetary policy and controlling the money supply are the responsibility of the US Federal Reserve. They have a target of 2% inflation every year. The Fed is aimed at maximizing employment and price stability by using the tools available to them. They debase the currency a modest amount every year in order to incentivize people to either spend or invest their capital. This is a weapon to them for stimulating economic growth and maximizing employment.
This is the longstanding reason fiat will never be a good place to store one’s wealth. A portion of a well-diversified portfolio should include a ‘’store of value’’ asset that is not correlated with stocks, bonds or real-estates to help offset their cyclical nature. It has become a common practice investing in stocks, bonds, or real-estates, but bear in mind that these financial markets have their boom and bust cycles. For example, Governments recognized gold as a monetary value once the market had adopted it. And eventually gold appeared as a clear and universal monetary medium.
Bitcoin is better as a store of value than any other asset because of some factors. Let’s go through these one by one.
With a total of 21M fixed supply, Bitcoin is the most popular liquid asset in the world. Such a fixed amount of liquidity has made bitcoin the scarcest asset in the world. Bitcoin is an ideal store of value asset as any increase in its demand leads its value to grow.
On the other hand, SHIBA INU has a total supply of 1,000,000,000,000,000, whereas the circulating supply is 394,796,000,000,000. This amount of supply is 18,799,809 times more than the total supply of bitcoin. But poor fundamentals of SHIBA INU are keeping itself behind some steps despite it has a big amount of market supply.
Investors feel relief investing in a coin with a small amount of supply, for example, Bitcoin has only 21M supply. The number of standard rich people around the world is more than 21M, which means they will be hungry to buy bitcoin in the future. But investors are less willing to invest in SHIB as it has a huge circulating supply.
Bitcoin has a pre-determined supply schedule, which is disinflationary. The cause of the supply schedule’s being disinflationary is the amount that gets minted per block decreases by half every four years. This schedule can never be altered, and Bitcoin becomes scarcer over time whatever the price or demand is owing to this halving.
But sadly to say, such kind of organized tokenomics is missing in SHIBA. Keeping 50% of the supply locked in uniswap and sending the remaining 50% to vitalik’s address made Shiba tokenomics controversial. However, the total supply of SDhiba inu tokens is 1 quadrillion. Compared to btc, SHIBA is highly lagged due to its controversial tokenomics.
A coin that sends 50% of its coins to a third-party address just to create hype doesn’t have the quality to be a store of value.
Regardless of the amount of additional computing power you put into the Bitcoin network, the output of the number of Bitcoins mined per block remains constant. That means, the same number of Bitcoin will be produced tomorrow regardless of whether there are 10 computers mining or 10 million.
That leaves no question to understand that Bitcoin is far ahead of SHIBA in terms of fundamentals and technology. So, undoubtedly Bitcoin can be considered as a store of value.
Not be perishable
Any perishable asset can’t retain value well into the future. You can realize the importance of food, which is a fuel for the body. Even being so important, food is a poor store of value.
Satoshi Nakamoto, the creator of Bitcoin, developed the structure of Bitcoin and the feature of 21M supply adheres to the system. Since the supply is hardcoded, no one can change it. That is the reason no one could have the ability to raise any question regarding this issue. What about SHIBA INU whereas Bitcoin is completely decentralized?
We see an entirely opposite scenario in the case of SHIBA INU. Massive supply and 40% coin burning by vitalik are responsible for this scenario indeed. How could people have their faith in such a coin of which 40% of coins are burnt by any 3rd party?
There is another reason accountable for this. Do you know what it is? I think you can guess from seeing the comparison table of SHIBA and BTC’s top 10 wallets.
Shib claims them to be truly decentralized. But, have you ever seen the top 10 holder list of SHIBA INU coins? We are sure you will get startled once you see this.
Look at the chart of the top 10 SHIBA INU holders below. That top 10 SHIBA accounts keep holding more than 73% of SHIBA. Do you understand the reality? That means, these SHIBA accounts can manipulate the market if they will, and it is so easy. These top SHIBA holders can crash the market once the SHIBA INU market gets close to ATH.
On the other hand, if you turn your eyes to the top 10 BTC holders, you can see the true decentralization here. Here you notice the account at the 1st position is inactive, and how less the holding amount in each account compared to SHIBA INU.
|Holders Number||Bitcoin’s Top 10 Holders||Shiba Inu Top 10 Holders|
|1||288,126.2 BTC = 1,37% (Inactive Wallet)||410,246,224,966,875.94 SHIB = 41.02%|
|2||178,010.99 BTC = 0.85%||81,557,560,515,428.22 SHIB = 8.16%|
|3||116,841.62 BTC = 0.56%||70,200,000,420,069.01 SHIB = 7.02%|
|4||94,505.11 BTC = 0.45%||69,581,276,803,316.95 SHIB = 6.96%|
|5||85,064.02 BTC = 0.41%||35,059,878,433,757.17 SHIB = 3.51%|
|6||82.620.15 BTC = 0.39%||30,418,384,553,521.00 SHIB = 3.04%|
|7||79,957.21 BTC = 0.38%||30,000,004,281,461.48 SHIB = 3%|
|8||73,601.14 BTC = 0.35%||25,066,161,512,938.74 SHIB = 2.51%|
|9||69,370.17 BTC = 0.33%||24,945,052,822,583.54 SHIB = 2.49%|
|10||68,004.72 BTC = 0.32%||19,442,000,589,731.55 SHIB = 1.94%|
As opposed to that, assuming computing standards don’t change in a way that makes it hard to use Bitcoin or diminish its usefulness, it will degrade over time. It doesn’t erode, wear down or break apart due to time or use. Any Bitcoin will still be just as usable in the indefinite future as it is today.
Easier to store
If you want, you can store btc for free, but you can’t do it with Shiba. Bitcoin being digital requires no large vault. Generally, a digital wallet is web-based, and anyone can self-custody any amount on their own using this digital wallet. Holders can also use a hardware wallet for storing Bitcoin.
As opposed to Bitcoin, SHIBA INU has limited wallet services and they don’t support Ledger Wallet, which are hardware cryptocurrency wallets made by Ledger. Other popular wallets are yet to support SHIBA COIN till now.
Using a wallet for BTC is very much convenient because that wallet can reside on a mobile device, on a computer desktop, a hard drive, or kept safe by printing the private keys and addresses on paper. But using a paper wallet for SHIBA INU is still not possible. There is a little bit of a learning curve on how to safely store bitcoin for anyone new to the space but once understood; there are no scaling or cost limitations to storing Bitcoin.
Easy to transport
Easy to transport is a feature of assets with a store of value that facilitates long-distance trade. Accessing a Bitcoin account anywhere is possible providing that there is an internet connection. It can be stored on a thumb drive, and so there is no worry for refugees or travelers, as they can access their accounts from anywhere within the network.
Crypto Comparison Chart in Selected Countries Who Said They Owned Crypto (Bitcoin)
There is a fraction of the time and cost to transfer the value of the size. On April 10, 2020, a bitcoin account transferred $1 billion worth of Bitcoin that cost the sender a grand total of $0.68 in total transaction fees. That’s a transaction fee of 0.000000068%. And since new blocks get recorded on average every ten minutes, the transaction occurred in minutes, not years.
But, since SHIBA INU is on the Ethereum blockchain, its transaction fees sometimes skyrocket. Furthermore, many types of wallets are still missing in SHIBA INU.
You can see how widely accepted Bitcoin is at the table below.
Crypto Wallet Comparison Chart : Bitcoin VS Shiba Inu
|Wallet Name||Bitcoin (BTC)||Shiba Inu (SHIB)|
Can SHIBA INU be a store of value?
Several market analysts think much of SHIBA’s appeal lies in the fact that it is very cheap to buy and sell as opposed to Bitcoin bullish moves that make it much more approachable to a retail trader who fancies a flutter. Many others are saying Shiba inu has no apparent commercial or investment use other than as a conduit for speculative mania and the attempt to make a buck.
Another conception regarding Shiba Inu is that the low nominal price may have a physiological effect on investors like ‘penny stocks’ do, but whether you put $1,000 in Dogecoin or Shiba Inu, you are risking the same amount. To some investors, the massive price fluctuations of SHIBA INU seem to be a ‘pump and dump’ scheme, which involves a group of investors artificially inflating a stock’s price, and then sell the stock once the price has risen. What is the end result then? The end result is that the ownership of Shiba Inu seems to be concentrated in relatively few anonymous hands. So, it is clear that getting the price moving in either direction is not an unnatural issue here.
So, it is till now obvious that SHIBA INU doesn’t have the ability to become a store of value.
Bitcoin treated as currency but SHIBA INU?
That BTC is now an official currency of a country was a tale some years back. Yes, we are talking about EI Salvador which has accepted Bitcoin as their official currency on 9th June 2021. The residents of that country pay their taxes to the government using bitcoin. This is just the start! Why are we saying so? It is because a Latin American economist named Balajis recently tweeted that not only EI Salvador but also other countries like Paraguay, Panama, Argentina, Brazil, and many more are waiting to announce Bitcoin as their native currency. They are working inside with this issue.
|Country’s Name||Republic of El Salvador|
|Area||8,124 sq mi (148th)|
|GDP||53.667B USD (101st)|
|Currency||US Dollar (2001), Bitcoin (7th September, 2021)|
On the other hand, till now, SHIBA INU doesn’t have the ability to become a country’s native currency. And the fundamentals of this coin suggest that its future is destined to leap in the darkness. Consequently, Bitcoin is the sole dominant here.
For sure, EI Salvador’s Bitcoin law will startle you. So have a look at their policies:
Bitcoin Law in EI Salvador
- EI Salvador has enforced law on Bitcoin to regulate it as unrestricted legal tender with liberating power, unlimited in any transaction, and to any title that public or private natural or legal persons require carrying out.
- According to the law, the exchange rate between bitcoin and the United States dollar will be freely established by the market. All prices in that country will be expressed in bitcoin and taxes will also be paid with it. The legality of Bitcoin in that country is seen easily as exchanges in Bitcoin will not be subject to capital gains tax.
- The country with the new law has set the USD as a reference currency just for accounting purposes. Economics agents have been made obliged to accept Bitcoin by the law. The country left people with the opportunity to easily convert Bitcoin into USD.
- The limitations and operation of the alternatives of automatic and instantaneous conversion from bitcoin to USD provided by the state will be specified in the Regulations issued for this purpose. The Executive Branch will create the necessary institutional structure to apply this law.
- EI Salvador will soon promote the necessary training and mechanisms so that the population can access bitcoin transactions.
- From this writing, we can observe how conscious EI Salvador is of Bitcoin.
Now let’s have a look at the elements that are essential to be in a successful currency. And check out whether these elements are present in BTC and SHIBA INU or not.
A successful currency has six key attributes including scarcity, divisibility, utility, transportability, durability, and counterfeitability. However, if bitcoin gains scale and 15% of the global currency market, the total price per bitcoin would be roughly $514,000.
Bitcoin developers stipulated in the protocol that the supply of tokens would be capped at 21 million at the time of launching. The demand for generating more tokens has encouraged a robust mining community. What will happen when the situation is liable to change significantly as the limit of 21 million coins is approached? It is difficult to answer the question. But if you match it with precious metals like gold, you can certainly say that scarcity can drive value higher.
As the point is regarding divisibility, we want to let you know that Bitcoin is divisible up to 8 decimal points. Most of the fiat currencies have much more supply in circulation than that of Bitcoins. One bitcoin has a much larger degree of divisibility than the U.S. dollar as well as most other fiat currencies. The smallest unit, which is equal to 0.00000001 Bicoin, is called a ‘’Satoshi’’ after the pseudonymous developer behind the cryptocurrency.
Bitcoin’s scarcity has become possible because of this extreme divisibility. Users with tiny fractions of a single bitcoin can still take part in everyday transactions if bitcoin continues to gain in price over time.
Having blockchain technology established the trust in users about Bitcoin. So, the use of blockchain technology is its key selling point. Trust among parties here is systematically established as checks and verifications are central to the maintenance of the ledger and to the mining of new Bitcoins. The flexibility of blockchains brings utility for Bitcoins.
Bitcoins can be transferred between parties within minutes, regardless of the size of the transaction with very low costs. Transferability is a hugely important aspect of any currency and Bitcoin is much more developed considering the transferability issue. Individuals don’t need to hold any physical representation of Bitcoin as it takes vast amounts of electricity to mine Bitcoin, maintain the blockchain, and process digital transactions.
The topic of durability comes with the physical form of a currency. As a result digital currencies are not susceptible to several physical harms, like tearing, burning etc.
Bitcoin cannot be counterfeited owing to the complicated decentralized blockchain ledger system. It can be done only by confusing all participants in the Bitcoin network, and it’s really the toughest feat. Through double-spending, Bitcoin can be counterfeited. This double-spending is possible with digital currencies but not with fiats.
But bitcoin’s large network made double-spending attack nearly impossible. If any attacker wants to run such an attack, he needs to pay an overwhelming amount of effort, money, and computing power, thereby rendering the possibility extremely unlikely. This factor has made Bitcoin too much valuable. It cannot be destroyed in the same way that a dollar bill could be. Losing bitcoins is also not a common issue indeed.
Now you say which one of these 6 points is present in SHIBA INU. Do you have one? The answer is a straight NO. But all these six points are available in BTC. That is the reason many countries will soon announce Bitcoin as their native currency rather than SHIBA. Coinmarketcap, top cryptocurrency prices, and charts showing website, has recently arranged a voting prediction. They proclaimed a reward of 50 coinmarketcap diamond for the sayer who can flawlessly foretell which next country will announce Bitcoin as their native currency. We have attached the voting chart of CoinMarketCap below. Such steps are missing in the case of SHIBA INU.
Prediction of Next Country with Crypto as a legal Tender
So, our final word marks the inability of SHIBA INU as a native currency of any country.
This point brings some relief to the SHIBA INU, and that’s why the point is interesting to SHIBA holders. There was nothing that important to say about SHIBA in the previous points, but only this point somewhat kindles a light for SHIBA. SHIBA INU is expected to get institutional support in the future if SHIBA INU Authority is true to its commitments made to SHIBARMY. While writing this report, there was no such thing as institutional support for SHIBA INU.
On the other hand, the institutional list of Bitcoin is too massive. And Tesla, the brainchild of entrepreneur Elon Musk, is the latest addition to that list.
We have decorated this point with the public companies that hold a large number of Bitcoins. There are several companies that acquired cryptocurrencies for their corporate treasuries in spite of the volatility. A public company namely MicroStrategy has caught our sight as a top Bitcoin holder and remains bullish on Bitcoin. The company continues its bitcoin acquisition spree. On the other hand, Tesla will resume bitcoin transactions once half of Bitcoin can be mined using clean energy. In brief, companies from the US and information technology sector hold the most bitcoin.
A survey shows that 34 public companies collectively hold over 213,000 bitcoins, as of 28 June 2021. Before bitcoin’s price plummeted, many institutional investors and corporate treasuries allocated their reserves to cryptocurrencies. All the allocations and total holdings represent 1.14% of the total supply of bitcoins in circulation and are equal to $7.4 billion based on price on 28 June 2021.
Top companies with bitcoin holdings
Running a survey on companies holding bitcoins shows that the information technology sector, consumer discretionary sector, and financial sectors successively come considering the number of bitcoin holdings. As per the survey, twelve companies from the US together hold over 185,000 bitcoins on their balance sheet. The top 10 public companies holding the most bitcoin comprises seven from the US, two from Canada, and one from Germany.
Top 10 Public Companies Holdings BTC
|Galaxy Digital Holdings||16,400 BTC|
|Voyager Digital||12,260 BTC|
|Marathon Digital Holdings||5,518 BTC|
|Coinbase Global||4,482 BTC|
|Bitcoin Group||3,947 BTC|
|Hut 8 Mining||3,522 BTC|
|Riot Blockchain||2,000 BTC|
MicroStrategy, a public company, holds the most bitcoin on the balance sheets, followed by Tesla, Galaxy Digital Holdings, Voyager Digital, Square, and Marathon Digital Holdings. The holding amount of MicroStrategy is nearly 105,085 bitcoins which is worth $3.6 billion based on the price on 28 June 2021. On the other hand, Galaxy Digital Holdings holds around 16,400 bitcoins. Square, a payments firm, purchased nearly 4,709 bitcoins for an aggregate price of $50 million in October 2020 and received an additional 3,318 bitcoins for $1701 million in February 2021. Marathon Digital Holdings, a US bitcoin mining company, increased its bitcoin holdings to around 5,518 bitcoins as of May 2021.
MicroStrategy to hold more Bitcoin
MicroStrategy acquired and held bitcoin as its primary treasury reserve asset allocating a large proportion of its corporate treasuries to bitcoin. Michael Saylor, the CEO of MicroStrategy, has been a leading advocate of bitcoin. The company purchased a total of 105,057 bitcoins from 2020 to 2021, and these amounts of bitcoin were bought for $2.741 billion and at an average purchase price of approximately $26,080 per token.
On 8 June 2021, the company announced to sell $500 million of seven-year senior secured notes with an annual interest rate of 6.125%to fund the purchase of more bitcoin. Later the company accrued the size from $400 million to $500 million as it received around $1.6 billion in orders. MicroStrategy bought an additional 13,005 bitcoins for $489 million in cash on 21 June with the proceeds from the sale of the $500 million high yield bonds.
Tesla to resume bitcoin transactions
As per Elon Musk, Tesla sold around 10% of its bitcoin holdings in the first quarter of 2021 to show the liquidity of Bitcoin. The company appeared in the space step by step, and steps are as followed:
- Tesla started accepting bitcoin as a payment option for its electric vehicle in March, 2021. The company further announced to suspend accepting bitcoin as a form of payment citing concerns over energy consumption.
- On 10 June, Musk added a condition that Tesla will accept bitcoin payments again providing that miners of the bitcoin can show they are using roughly 50% clean energy. Following the announcement, the bitcoin mining council was launched amid 10 June amid worries over bitcoin’s energy consumption and is open for membership applications.
The issue of fluctuations in the price of cryptocurrencies has become a concern among companies, and companies were stammering to buy cryptocurrencies for their corporate treasuries. Observing the possibility of bitcoin’s price fall, US public companies holding bitcoin in their treasuries will need to write down the value of the holdings as an impairment charge. The high eagerness in cryptocurrencies led MicroStrategy to hold such high yield bonds.
SHIBA INU hasn’t been created to defeat bitcoin. Then, why SHIBA INU has been created? You don’t need to understand rocket science to comprehend this. Just look at the SHIBA INU tagline ‘’The Dogecoin Killer’’; so it can easily be guessed from here that SHIBA inu is basically trying to lead the meme coin. Therefore, SHIBA INU will be successful once they can do so.
SHIBA INU doesn’t need to chase bitcoin to implement its goal. We are quite sure that reading this article Bitcoin vs Shiba inu review, you have already gotten understood that Shiba inu doesn’t even pose the ability to beat bitcoin. All the challenges SHIBA INU has are about Doge coin. That the delight of all the members of SHIBarmy will know no bounds once they beat Doge coin goes without saying. This will be the real ‘’beat’’ of SHIBA INU.
Do you think SHIBA INU can beat Doge? Let us know by commenting below.