Bitcoin vs Shitcoin: Why You Shouldn't Invest in One of Them
In the world of cryptocurrencies, there's a fundamental difference between Bitcoin and thousands of so-called altcoins. While one has proven its value, the other often only serves to enrich creators.
A team of experts in digital technology and artificial intelligence. We bring current news and in-depth analysis from the world of AI.
Introduction: The World of Cryptocurrencies Isn't Black and White
When Satoshi Nakamoto launched Bitcoin in 2009, he probably had no idea that fifteen years later, more than 20,000 different cryptocurrencies would exist. While Bitcoin remains king, most other projects fall into a category that experienced investors call shitcoins.
What Is a Shitcoin?
Shitcoin is a slang term for cryptocurrencies that:
- Have no real utility value
- Were created primarily for the quick profit of their creators
- Lack a transparent development team
- Have centralized token distribution
- Promise unrealistic returns
Typical examples include meme coins created as jokes, or projects promising revolution but without any technical foundation.
Why Is Bitcoin Different?
1. Decentralization and Security
Bitcoin has the most extensive and secure network in the world. Thousands of nodes worldwide ensure that no entity can control the network or manipulate its rules.
2. Limited Supply
Only 21 million Bitcoins will ever exist. This property is encoded in the protocol and cannot be changed. Shitcoins often have unlimited or easily modifiable supply.
3. Lindy Effect
Bitcoin has existed for over 15 years and survived all attempts to destroy it. The longer something survives, the more likely it will continue to survive. Most shitcoins don't survive even one market cycle.
4. Real Adoption
Bitcoin is accepted by countries (El Salvador, Central African Republic), large corporations (MicroStrategy, Tesla), and financial institutions. Shitcoins are traded mainly by speculators.
Why Do People Invest in Shitcoins?
The main reason is FOMO (Fear Of Missing Out) and the desire to get rich quick. Shitcoin marketing often includes:
- Promises of astronomical returns ("100x in a month")
- Celebrities and influencers paid for promotion
- False sense of community and exclusivity
- Manipulative pump-and-dump tactics
Statistics That Speak for Themselves
According to analyses:
- 95% of all altcoins from 2017 are worthless today
- 80% of ICO projects were scams or failed
- The average lifespan of a shitcoin is less than 2 years
- Bitcoin has maintained over 40% dominance of total market capitalization over the past 10 years
How to Recognize a Shitcoin?
Before investing, ask yourself these questions:
- Who is behind the project? An anonymous team is a warning sign.
- What problem does it solve? If the answer isn't clear, probably none.
- How is the supply distributed? If creators hold most tokens, it's a risk.
- Is there a working product? A whitepaper isn't enough.
- Is the code open-source? Transparency is key.
Conclusion: Bitcoin Isn't an Investment, It's Savings
Bitcoin represents a fundamentally different category than shitcoins. While Bitcoin is digital gold and a store of value with a 15-year history, shitcoins are in most cases speculative bets with negative expected returns.
If you're looking for long-term value preservation and protection against inflation, Bitcoin is the clear choice. If you're looking to get rich quick through shitcoins, statistics are against you – and you'll probably lose your money.
Andigi Editorial
A team of experts in digital technology and artificial intelligence. We bring current news and in-depth analysis from the world of AI.
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