The term shitcoin is one of the most controversial terms in the crypto world because it is used to derogatorily describe certain cryptocurrency projects. Even many of the cryptocurrency projects that are called “shitcoins” are copies of Bitcoin that do not contribute anything new or improve the technology they use to operate at all, or sometimes even scams.
Dfrom the birth of Bitcoin, a lot of new terms and expressions have emerged in the crypto ecosystem, such as shitcoin. A very common term that is used to belittle many cryptocurrencies, alternatives to Bitcoin or altcoins. But what does it really mean shitcoin and why is it used?
You should know that there are absurd cryptocurrencies, cryptocurrencies that were only created with the aim of scamming people, cryptocurrencies that have no innovative use or any improvement, ... Understanding this will help you not to lose your money.
The term shitcoin make reference to all those useless cryptocurrencies that exist in the market. Cryptocurrencies that were created without a defined purpose, offered at speculative prices, or that simply have no use because they are a cheap copy of other projects. It is, therefore, a subjective term that each person can attribute to the cryptocurrencies they consider.
There are hundreds of thousands, or millions, of cryptocurrencies and Tokens out there. How many of them are considered a shitcoin? Well the truth is that the vast majority of them. As Bitcoin grew, developed and gained popularity, new projects and startups of new cryptocurrencies began to emerge.
Some sought to replicate the Bitcoin system and improve the problems it presented, or they wanted to innovate in a completely new and cutting-edge project, such as the case of Ethereum. But those projects also began to emerge that did not bring any development, progress or value to the tecnología blockchain that Bitcoin had implemented. Projects that were simply, or almost, an identical copy of his whitepaper and that they did not present clear goals or objectives. It was the birth of shitcoins.
How to identify a shitcoin?
Many people think that any cryptocurrency outside of Bitcoin is a shitcoin. Is this correct? As we have said, it is somewhat subjective.
In the crypto world, when a new project is built and launched, certain peculiarities or characteristics are attached that give that project a degree of reliability and security. But when that project promises great and revolutionary changes to the crypto industry, but lacks clear expectations and objectives, defined functionalities or its developers are somewhat mysterious, there is a 99.99% probability that it is a shitcoin. Yes, it sounds hard to say, but it is the truth, most of the projects fall under this definition in a widely argued way.
With the constant technological advances nowadays, it is very common to receive notifications or advertising, almost daily, about the launch of new projects that promise an infinity of benefits. However, in order not to be dazzled by the thousand wonders that these ventures offer, certain elements must be kept in mind when evaluating them. In order to have a clear and precise idea of whether they are reliable or not.
Some elements to consider
Almost always, new cryptocurrencies are born thanks to a ICO, of English Initial Coin Offering, which translated means Initial Coin Offering. These offers always seek to publicize and position the cryptocurrency or altcoin that they are launching, seeking to attract investors interested in injecting resources into their projects through the acquisition of coins. But ICOs are not always reliable or secure. In fact, the ICO boom in 2017 brought severe scam problems to the crypto community. Therefore, some recommendations for you to identify a cryptocurrency of a shitcoin are:
- If the whitepaper is a practically identical copy of another known project, it is written with a technicality almost impossible for any mortal to understand, or failing that, the project does not even have a whitepaper, do not hesitate, it is a shitcoin.
- Its team of developers is made up of a small group of strangers, who hide behind emojis and false names. Nothing that generates more distrust than a group of anonymous people who ask for money to make a project born out of smoke come true.
- The website where the project is presented lacks originality and design, or uses free domains.
- It offers thousands of benefits in general but does not specify any in particular or how these results will be achieved.
- It does not present a work plan with clear and defined goals that guarantee the development of the project in the future.
- Or they simply develop a fork of some cryptocurrency (usually Bitcoin) by changing some things and that's it. In short, it does not innovate at all.
In all these cases, the developers create the project, launch it and promote it in the market and after they have managed to make a profit at the expense of investors, they abandon its development. They do not return to dedicate work or effort to continue developing the code, giving rise to a shitcoin that does not contribute anything to the system.
What cryptocurrencies are shitcoin?
Many influential characters in the crypto ecosystem catalog all cryptocurrencies except Bitcoin as shitcoins. But this point of view really is not very healthy for the community. There are cryptocurrencies like Ethereum (ETH), EOS (EOS), Litecoin (LTC), Monero (XMR), Namecoin (NMC) and others, which have proven to be useful and have contributed their bit to the development and adoption of blockchain technology and new functionalities.
Perhaps the clearest example of this is Ethereum, which introduced the possibility of creating smart contracts or smart contracts to the system. A functionality that has proven to be vital for creating a decentralized ecosystem that continues to evolve and become stronger and stronger.
Another good example is Monero, ZCash y GRIN, cryptocurrencies that have proven that there are more powerful ways to maintain privacy and even anonymity. But beyond that, they have researched new types of crypto that previously seemed impossible. .
On the other hand, other implementations such as Dent (DENT), BitTorrent (BTT) and Dogecoin (DOGE) represent shitcoins for some. Since these projects were created without a clear or useful purpose, other than to enrich their developers, but without adding any value to the system. In fact, BitTorrent Token (BTT) has been accused of plagiarism on several occasions, accusations that also tarnished the chain where said token is executed, TRON.
However, it must be stressed again that the interpretation or opinion of a cryptocurrency or altcoin like shitcoin is specific to each individual. For example, John McAfee viewed Bitcoin as a shitcoin. A way of thinking that many clearly do not share with him. Likewise, other useful cryptocurrencies are also seen as shitcoins by people with a particular point of view. Therefore, there may always be a debate about which currency is useful or not. Although there are many that have clearly stated that they do not provide any value.
Recommendations when choosing cryptocurrencies
- Before choosing or investing in a cryptocurrency, one must consider the utility or benefit that it contributes to the cryptographic system.
- Likewise, it must be considered whether said cryptocurrency or token will generate profits in the future. That is, if you have a value (not price) that allows you to have good profitability or is simply based on speculation.
- It is also important to verify if the cryptocurrency or token has a legitimate and real endorsement by recognized and qualified companies. Well, there are many projects that hide behind the face of some public figure without much foundation.
- El level of development The project will also be an important aspect to consider. Well, if it is one that is not mature but is already promoting and looking for resources, it is probably a shitcoin.
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