As cryptocurrencies continue to capture the attention of investors around the world, rises and falls in various cryptocurrencies have become the norm. One example is the Shiba Inu, which experienced a staggering increase in population of nearly 900% within a few weeks in 2021. However, Shiba Inu’s flaws and overwhelming token supply may hinder its ability to replicate such success in the future.
When comparing Bitcoin and Shiba Inu, one important factor stands out. It’s supply. Shiba Inu boasts a circulation of over 589 trillion tokens, but the supply of Bitcoin is limited to only 19.25 million. Bitcoin’s supply limit is 21 million coins, which is controlled by an algorithm through a process called “halving.” This unique monetary policy reduces the creation of new Bitcoins over time, increasing the cryptocurrency’s scarcity and long-term value.
Unlike Shiba Inu, which sought to artificially inflate prices through burn mechanisms, Bitcoin’s robust structure and true scarcity make it an attractive option for investors looking for stability and reliable growth. . The market has realized that Shiba Inu’s supply is flawed, and as a result, its growth has lagged compared to Bitcoin’s staggering 150% increase during the recent cryptocurrency market rally.
Additionally, Bitcoin serves as a microcosm of the growing gap between itself and other crypto markets. While other cryptocurrencies rely on ongoing developer intervention, Bitcoin’s original design has proven to be simple, powerful, and decentralized. As the most secure and resilient cryptocurrency, Bitcoin has evolved into the most valuable digital asset and gained recognition on Wall Street.
The recent approval of 11 new Bitcoin ETFs is further evidence of growing demand for Bitcoin as institutional investors pour money into the cryptocurrency. Industry experts like Ark Invest CEO Cathie Wood believe that once Bitcoin is adopted into traditional finance, its price could rise to unprecedented heights. I think there is. With just 1% of institutional investors’ funds allocated to Bitcoin, the price could rise more than 3,000% to more than $1.5 million.
Although everyone’s concept of wealth is different, Bitcoin’s fundamental characteristics of decentralization, security, and scarcity make it an ideal choice for long-term investing. While the cryptocurrency market remains uncertain, Bitcoin’s enduring nature remains steadfast, solidifying its position as an unstoppable force driving the cryptocurrency market forward.
Disclosure: RJ Fulton holds a position in Bitcoin. The Motley Fool’s Disclosure Policy confirms our position on Bitcoin and recommends it.
1. What is the main difference between Bitcoin and Shiba Inu?
The main difference between Bitcoin and Shiba Inu is their supply. While the supply of Bitcoin is limited to only 19.25 million pieces, there are over 589 trillion Shiba Inu tokens in circulation.
2. How is the supply of Bitcoin controlled?
The supply of Bitcoin is controlled by an algorithm through a process called “halving.” This policy reduces the creation of new Bitcoins over time, increasing Bitcoin’s scarcity and long-term value.
3. How did the Shiba Inu try to raise the price?
Shiba Inu tried to artificially inflate prices through a burn mechanism.
4. Why is Bitcoin considered more stable and reliable than Shiba Inu?
Bitcoin’s robust structure, true scarcity, and algorithmically controlled supply make it an attractive option for investors looking for stability and reliable growth.
5. How did Bitcoin outperform Shiba Inu in the recent crypto market rally?
The flaws in Shiba Inu’s token supply have been recognized by the market, causing its growth to lag Bitcoin’s staggering 150% increase during the recent cryptocurrency market rally.
6. What is the difference between Bitcoin and other cryptocurrencies?
Unlike many other cryptocurrencies, Bitcoin’s original design is simple, powerful, and decentralized. It does not rely on continuous developer intervention and has proven to be the most secure and resilient cryptocurrency.
7. What are the recent trends in demand for Bitcoin from institutional investors?
The recent approval of 11 new Bitcoin exchange traded funds (ETFs) shows the growing demand for Bitcoin among institutional investors. Industry experts believe that once Bitcoin is adopted into traditional finance, its price could rise to unprecedented heights.
8. If institutional investors allocate 1% to Bitcoin, how much could the potential price increase be?
Industry experts say that if 1% of institutional funds were allocated to Bitcoin, the price could rise by more than 3,000% and reach more than $1.5 million.
– Cryptocurrency: Digital or virtual currency that uses encryption for security purposes.
– Shiba Inu: A virtual currency that experienced a significant rally in 2021, but it is flawed and has a large supply of tokens.
– Bitcoin: The first and best-known cryptocurrency, known for its limited supply, decentralization, and high security.
– Token supply: The number of tokens or coins available in circulation of a cryptocurrency.
– Halving: Bitcoin’s algorithmic process that reduces the creation of new Bitcoins over time, increasing their scarcity and value.
– Burn mechanism: A method used by some cryptocurrencies to increase the price by removing tokens from circulation.
– ETF: An exchange-traded fund that tracks the performance of the underlying asset (in this case, Bitcoin).
Recommended related links:
– Cryptocurrency – Investopedia
– Coin Desk