Digital currencies include a wide range of assets, two of which are Bitcoin and meme coins. Both coin types have captured the attention of investors and crypto enthusiasts, however, they are different in many ways.
Bitcoin was the first cryptocurrency to ever be launched and is often thought to represent financial innovation and decentralization.
Meme coins, on the other hand, were created after Bitcoin, and are a type of cryptocurrency whose value is driven by internet culture and social media hype.
For investors and digital currency enthusiasts, understanding how Bitcoin and Meme coins are different is vital when navigating the crypto market and making smart investment decisions.
In recent years, cryptocurrency use and adoption have surged. Now, more than ever, crypto enthusiasts are looking for digital currencies to invest in. While Bitcoin started with a value of just above zero, it has since skyrocketed in value, recently exceeding a value of over $70,000 per coin.
This makes Bitcoin one of the most popular coins to invest in.
Meme coins are also a popular investment choice, with coin enthusiasts often conducting intensive research in order to find the best crypto to invest in, with meme coins like Pepe Unchained being popular alongside more established coins like Bitcoin and USDT.
Even though some meme coins lack specific utility, many meme coins have seen a rapid increase in value, reaching a market cap of billions of dollars overall.
In this article, we will review the fundamentals of Bitcoin, learn about meme coins, and explore the differences between the two coin types.
Understanding Bitcoin
As mentioned above, Bitcoin was the first cryptocurrency ever created and launched for public purchase. It was first bought and sold in 2009 and paved the way for thousands of other cryptocurrencies that would follow its lead.
Bitcoin’s Key Features
The tech behind Bitcoin is called blockchain, which is like a spread-out digital ledger that records every transaction across a large number of different computers.
The coin is specifically designed to operate without needing middlemen like banks or governments, meaning that users can transfer Bitcoin directly to one another without any central authorities.
Because Bitcoin does not rely on any central authorities, it is known to be decentralized which means no one entity has control over Bitcoin.
This makes the coin very resistant to manipulation, fraud, and censorship.
Another key aspect of Bitcoin is that it has a limited supply.
There will only ever be 21 million coins, which was written into its design from the beginning. Limiting the coin supply drives demand up and increases the coin’s value over time.
Beyond being decentralized and having a limited supply, Bitcoin is also known to be very secure because of the cryptographic tech that the coin uses to secure transactions. Bitcoin miners work to validate transactions.
This ensures that no double charges occur and also ensures that each transaction is completed in the most secure way possible.
How Bitcoin Is Used
Because Bitcoin has been around since 2009, longer than any other digital coin, it has been widely adopted by many industries. The most common way to use Bitcoin is to buy and hold it as an investment.
However, crypto enthusiasts also enjoy using Bitcoin to purchase goods and services.
Online gamers can use Bitcoin to fund gaming activities and even wager at online casinos. Dedicated crypto casinos and anonymous casinos that accept crypto allow players to buy in, wager, and withdraw winnings using Bitcoin.
Shoppers can also use Bitcoin to purchase real-world goods like clothing online and even fund trips all around the world.
This makes Bitcoin one of the most user-friendly and widely adopted crypto coins available today.
Introduction to Meme Coins
While Bitcoin is established and has been around for years, meme coins are a newer and more experimental type of cryptocurrency. Meme coins usually get their start from internet memes, jokes, or viral trends. They are considered light-lighted and their success is often community driven.
This is unlike Bitcoin, which was created with a designated purpose and technical foundation.
The first meme coin that was ever created was called Dogecoin. It was launched in 2013, just a few years after Bitcoin.
The coin was based upon the “Doge” meme that was popular at the time and featured a Shiba Inu dog. Even though the coin started as a joke, it eventually saw huge success and gained a dedicated following.
Key Features of Meme Coins
One of the key features of meme coins is that they are strongly connected to social media platforms and internet culture. Through online communities like Reddit and Twitter, meme coins gain transaction and support and are able to become successful.
Some investors consider this approach to be more grassroots than other coins, like Bitcoin, as it relies on a community of supporters who believe in the coin.
Another feature of meme coins that crypto enthusiasts often note is that they can be highly volatile. Meme coins are technically classified as speculative assets, which means they have the potential for quick changes in value either up or down.
Volatility can be a positive or a negative for crypto holders, depending on which way the market is swinging. If a meme coin quickly gains value, investors will likely see their portfolio increase in value.
However, when a meme coin’s value suddenly declines, investors may see the value of their assets plummet. As such, it’s wise to always hold a mix of meme coins and various cryptocurrencies.
How Meme Coins are Used
Although meme coins are considered playful and fun, they can be smart investment choices and are used for a number of real-world applications.
Meme coins like Dogecoin have been adopted by online gaming sites and online casinos, with other coins rising in value over time creating lucrative investment opportunities for crypto enthusiasts who enjoy buying and holding crypto as long-term investment options.
In addition, several meme coins can be used to buy real-world goods and pay for services from businesses like Crypto Emporium and even Tesla.
Key Differences Between Bitcoin and Meme Coins
While Bitcoin and meme coins are both technically types of cryptocurrencies, they are different in some ways.
Scarcity and Supply
Bitcoin has a total supply that is capped at 21 million coins, while many meme coins do not have a capped supply. This is one of the main differences between Bitcoin and meme coins. It means that Bitcoin is often considered a scarce resource, because there is only a certain amount of it, whereas meme coins are not scarce and often have an unlimited supply of coins.
Utility and Use Case
The value of meme coins is usually driven by speculative trading instead of practical utility. This means that meme coins get their value from their community of supporters rather than the practical ways they can be used. Bitcoin, on the other day, was specifically designed with utility in mind as a peer-to-peer payment system.
While Bitcoin and meme coins have different utilities, both have been adopted by a wide range of industries and can be used for investing or to purchase real-world goods and services.
Longevity and Sustainability
Bitcoin has proven that it is a resilient digital currency asset. Since it was launched in 2009 it has moved up and down in value, but always trended upwards, slowly gaining value over time.
Meme coins, on the other hand, are more likely to see rapid increases or decreases in value due to internet hype and speculation. The price of these coins can be driven by social media trends and even celebrity endorsements. Because meme coins are relatively new, their longevity is yet to be tested and proven in the same way that Bitcoin’s longevity has been proven.
Conclusion
Meme coins and cryptocurrencies, like Bitcoin, have both become popular investment options in recent years. Beyond being investment tools, cryptocurrencies, including both Bitcoin and meme coins, can be used to buy real-world assets and pay for experiences like travel and gaming.
Bitcoin is similar to meme coins in some ways. Both are known to be volatile, offering investors the chance to see big gains and also large losses, depending on which way the market is swinging.
Similarly, both meme coins and Bitcoin are smart ways for investors to diversify their portfolios, as their value is not tied tightly to the value of the stock market and typical investment assets like stocks, bonds, or mutual funds.
However, meme coins differ from Bitcoin in a few key ways. Their value is driven by community support, rather than specific utility. In addition, they often have an unlimited supply, whereas Bitcoin has a capped supply of coins.
