Bitcoin is the most popular cryptocurrency. The dominant cryptocurrency has been what the other currencies aspire to be. Most users prefer that their personal information not be made public. Privacy ensures dealers’ security. It is also useful in negotiations. However, this has altered as the Bitcoin age has become more mainstream.
To begin with, everything from investors to investment models differs between meme coins and mainstream cryptocurrencies. People regard bitcoin and Ethereum as investment vehicles. However, they don’t see DOGE and SHIB as real investment possibilities. Memecoins have loyal supporters willing to go to any length to keep the race going. The GameStop movement in 2020 and the Robinhood petition in 2021 are examples of this. As a result, meme coins have all the potential to overtake mainstream cryptos.
Memecoins are digital tokens based on well-known social media jokes, puns, sarcasm, and memes. There are already around 130 meme coins in circulation. Unlike major cryptocurrencies, meme coins never had a specific purpose. Conventional digital currencies are created to improve blockchain technology, promote decentralization, and protect transactions from fraud. However, meme coins such as DOGE and SHIB exist solely to entertain investors. Memecoins, in comparison, are far more volatile than true cryptocurrencies, resulting in abrupt rises and falls in a short period.
Bitcoin, like gold, is frequently compared to gold and utilized as a sort of insurance against arbitrary inflation of the money supply of contemporary fiat currencies. So, if the inflation rates of gold-based currencies were originally quite high but have declined significantly, the same might not apply to Bitcoin. Furthermore, this dynamic appears to be in place as of 2021.
Bitcoin might partially replace gold in financial markets, for example, as a form of protection against central banks’ ultra-expansionary monetary policies.
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.