In the early days when Bitcoin debuted it became controversial due to some specific reason which backed the evolution of different blockchain-based currencies or products such as Altcoins, Memecoins, and Shitcoins. Today in this informative piece we will delve deep to understand the difference between Memecoins and AI Crypto Coin and their pros and cons.
What are Memecoins?
If we break down the word memecoin consists of two different words meme and coin, as its name suggests these are the digital currencies that came into evolution as joke or memecoin which gathered a huge spotlight after its surge in adoption and endorsement by leading crypto moguls and billionaires.
Dogecoin was one of the first meme-based coins that came into existence, it was founded by two popular software engineers Billy Markus and Jackson Palmer. The coin was not created with the aim to serve as a commodity or asset as it was just a joke that went popular after the boost in the adoption of blockchain-based products.
What Makes Memecoin Unique?
Several factors set memecoins a better alternative to other available blockchain-based currencies, some primarily include high price volatility, extensive supply, ease of trade, and many others.
High price volatility: Memecoin is termed to be one of the most volatile blockchain-based currencies, which is much more an advantage than a disadvantage. The advantage is there is a high possibility of sudden gains and profits in memecoins as their prices remain very low and could give returns in a very short period. After the official launch of Dogecoin, the first memecoin in the crypto market several investors poured money and available data states that many of them have made millions and billions in profit in the few years after investing in Doge.
Extensive or uncapped Supply: Almost every issued or minted memecoins has a minimal value due to extensive supply.
Lesser Risk: Many argue that trading memecoins include less risk compared to trading other products such as altcoin, shitcoin, and coins and tokens. One could invest less and earn more with proper analysis and knowledge.
Ease to Trade- Compared to Altcoins and other blockchain-based currencies, memecoins are easier to trade, and as of Q3, 2024 the total number of memecoins in the market was over 3k.
Surged Trading Volume- Compared to other digital assets and currencies, memecoins have more average trading volume, it is just because of their low prices which attract more and more traders for daily trading.
Risk Associated with Memecoins!
Not every memecoin in the digital asset market is valued at a low price some are highly valued in terms of trading value, Doge Killer is the memecoin that is highest valued trading at $307.29 followed by PepeCoin (PEPECOIN) trading at $5.28, Dogwifhat (WIF) worth for $2.47.
Investing in high-valued memecoin might include the risk of losses, but the case is reversed in penny memecoins as the majority of them are overhyped either by the community or by the developer, which helps these to gain volume and adoption in less time.
What are AI Crypto Coins/ Tokens?
AI Crypto Tokens/ Coins are the form of digital assets that leverage Artificial Intelligence for the enhancement and advancement of blockchain network and other services in order to ease overall process trading in a decentralized world.
These tokens came into existence in order to leverage Artificial Intelligence to boost and enhance the trading model by AI technology to add predictive modeling and other features that require fewer human interfaces.
The introduction of AI Crypto Tokens has given the digital asset industry a new concept of automation which helps traders and investors to analyze risk with the help of AI models.
Benefits of AI Crypto Tokens
Each digital asset in the vast finance market has its own risks and benefits, some have less advantage and some have more. AI crypto token has some primary benefits which include improved trading decisions, enhanced security, real-time theft detection, scalability, and others.
– Improved trading experience- The evolution of Artificial Intelligence technology and its integration with cryptocurrencies has significantly improved the trading experience.
– Enhanced security- Following the development of automation and other related AI models, some cryptocurrencies have improved security, the AI-integrated systems are more capable of detecting bogus and suspected activities which further helps in dismantling failures in the coming times.
– Scalability- With the help of AI integration the capability to process higher volume is seen, as the boom in the Artificial Intelligence industry is constantly heading forward there are speculations that AI crypto token collective market capitalization is expected to have an appreciable pace in the next few years.
Cons of AI Crypto Tokens
Almost every currency has risks, yet some have more and others have fewer risks and threats.
High Cost to Maintain AI-based crypto tokens: As we all know AI technology has gained major traction after the global pandemic that shook the world in 2021. As AI is evolving it currently lacks huge confidence, that’s why developing AI-based models cost much more capital than the development of usual cryptocurrencies.
AI-Based Prediction System Flaws- The majority of times it has been observed that predictions made by AI-based prediction modules have gone wrong, it is because it lack the intelligence that is one found in human beings. The predictions made by these modules are solely based on the historical data that is available in limited amounts over the internet.
Conclusion
In the dynamic landscape of cryptocurrency, both Memecoins and AI Crypto Tokens bring distinct characteristics and benefits to the table, along with their unique risks.
Memecoins, originating as a humorous spin on digital currency, has grown into widely traded assets with high price volatility and accessibility, offering potentially high rewards at lower entry costs. However, their overhyped nature and high risk of losses, especially with high-value memecoins, are essential factors for investors to consider.
On the other hand, AI Crypto Tokens represent the fusion of AI and blockchain, aiming to enhance security, scalability, and predictive capabilities in trading. Despite these promising benefits, the high development and maintenance costs and potential prediction inaccuracies indicate that the technology is still maturing.
Both asset classes offer unique opportunities and challenges. Understanding the specific use case, risk tolerance, and market dynamics for each type can guide investors in making informed decisions in the ever-evolving world of digital assets.
