Have you heard of “meme coins” or “shitcoins”? They’re like cryptocurrencies that many people think are worthless. Meme coins are cryptocurrencies that don’t seem to offer much real value or usefulness and are often promoted and driven by internet memes, stories, and hype. Shitcoins, on the other hand, are created quickly without much thought.
But before we dive into the world of meme coins and shitcoins related to Bitcoin, let’s first see if there’s any real difference between them. While they might seem the same – both created for fun without any real value, just for gambling and speculation – I’ve found a slight difference in my research.
Meme coins are often influenced by internet culture, have a big community behind them, and sometimes even have some technology being developed. For example, coins like Dogecoin and Shiba Inu (SHIB) are working on blockchain projects and getting investments. Some meme coins like Dogecoin, Shiba, and PEPE have been around for years and have high market values. Some, like Harry Potter Obama Sonic Inu Coin ($BITCOIN), have thousands of social media followers and are involved in charity work.
But “shitcoin” is a term used more broadly and negatively. It means any cryptocurrency is seen as worthless, with no real use or credibility. Shitcoins can include both meme coins and other cryptocurrencies that are hastily made, have no clear purpose, or are just scams.
Meme Coin and Shitcoin on Bitcoin – What does it mean?
“Meme coins or Shitcoins on Bitcoin” refers to alternative cryptocurrencies (altcoins) that are developed on top of Bitcoin and leverage the Bitcoin ecosystem. These altcoins on Bitcoin are created using on-chain data mechanisms of Bitcoin transactions.
In this article, we will decode the meme coins and shitcoins on Bitcoin and we’ll explore a few Bitcoin meme token protocols like Runes, BRC20 tokens, and Ordinals. I will also share step by step guide on, how to invest in Bitcoin meme and shitcoins.
Most Popular Meme Coins on Bitcoin
Bitcoin is the oldest blockchain with a comparatively old tech stack and a smaller block size. These technicalities have historically made the Bitcoin blockchain unsuitable for creating smart contracts, unlike Ethereum.
However, a recent update on the Bitcoin protocol made creators and builders develop applications on top of Bitcoin using different types of transactional data such as witness and UTXO. In this article, we will focus on the most popular meme shitcoins being built on Bitcoin.
Here are the most popular shitcoin protocols on Bitcoin that are Degen’s favorite and minting money for traders and early believers.
Runes:
Runes is a new fungible shitcoin or meme coin protocol built on top of the Bitcoin blockchain. It’s the brainchild of crypto wizard Casey Rodarmor. The Runes protocol went live on the halving day, April 20th, 2024. Leveraging the UTXO model of Bitcoin, Runes allows for the creation of shitcoins using the Bitcoin blockchain.
Due to Bitcoin’s small block size and the network congestion stemming from its outdated tech stack, implementing smart contracts directly on Bitcoin is impossible. However, Casey Roadamor found a way to inscribe data into UTXOs, enabling the creation of shitcoins using the Runes protocol on top of Bitcoin.
Why runes, you ask? According to Casey, Bitcoin is the cornerstone of the crypto world, and Runes brings back the degenerate trading and meme culture to the OG Bitcoin. Additionally, it’s a method to reward Bitcoin miners with network fees, as the Bitcoin reward diminishes every four years due to the halving.
Since its launch, the Rune protocol has seen immense trading volume and craze. One shitcoin, named Satoshi Nakamoto, surpassed a market cap of 100 million within just two days of the Rune protocol’s launch. Anyone can mint and trade Rune using crypto wallets such as Xverse, and on platforms like Luminex and Magiceden. You can read more technical aspects of Rune here, Runes, Bitcoin’s New Fungible Token Standard
BRC20:
BRC20 is another fungible shitcoin or meme token protocol on Bitcoin. Unlike Runes, BRC20 uses witness signature data to create tokens based on JSON inscriptions. More about BRC20’s technical aspects are described here BRC-20 Explained. BRC20 pioneered what today has evolved into Runes, aiming to facilitate shitcoin trading on the Bitcoin network.
However, due to its limitations, BRC20 has conceded superiority to a more on-chain and easier method called Runes, as discussed above. Nevertheless, the BRC20 protocol boasts several tokens that crypto investors believe. ORDI stands out as the leading BRC20 coin, with a market cap of 1 billion, listed on major centralized exchanges (CEXs).
Like Runes, trading BRC20 requires a crypto wallet like Xverse and Unisat. The leading marketplace for BRC20 tokens is Magic Eden.
Bitcoin Ordinals
Ordinals are akin to NFTs, serving as non-fungible tokens built atop the Bitcoin blockchain. They are inscription-based, predominantly associated with image or data inscriptions on the chain. Ordinals are generated by inscribing images, text, or data onto Satoshi, the smallest unit of Bitcoin.
Similar to Ethereum NFTs, Ordinals find utility in art, community project launches, and membership based on on-chain data. However, Bitcoin ordinals possess greater trustworthiness due to their on-chain storage system, unlike many Ethereum NFTs which often rely on off-chain cloud storage.
Leading Bitcoin ordinal projects, such as OMB, Runestones, Bitcoin Frogs, and Bitdogs, are experiencing extensive trading activity in both primary and secondary markets. These projects are making significant waves and are anticipated to soar even higher.
How to invest in Shitcoins on Bitcoin?
First, familiarize yourself with Bitcoin, its protocol, and how it operates. Understand the basics of blockchain technology, mining, transactions, and the UTXO model.
Next, research Bitcoin shitcoin projects such as Runes, BRC20, and Ordinals. Learn about their technical aspects, including how they leverage the Bitcoin blockchain, their tokenomics, and their goals within the crypto ecosystem.
Secondly, analyze the sentiment in the crypto market, study tokenomics of various projects, and identify influential figures within the crypto space. Follow discussions on social media platforms, forums, and news outlets to gauge market sentiment and gain insights into potential investment opportunities.
Once you’ve done your research and feel confident about investing in volatile protocols like these, proceed with the buying procedures.
Step by Step Guide to investing in meme shitcoins on Bitcoin:
Buying Bitcoin meme and shitcoins from CEXs:
- Find a reputable exchange that supports Bitcoin shitcoins such as BRC20 and Ordinals.
- Sign up on the exchange and complete the necessary Know Your Customer (KYC) documentation.
- Purchase the desired tokens from the exchange using fiat currency or other cryptocurrencies.
- Decide whether to keep your tokens on the exchange or transfer them to your wallet. If transferring, ensure you send them to your Ordinal address.
Buying Bitcoin meme and Shitcoins from DEXs using a Crypto Wallet:
- Download a crypto wallet that supports Bitcoin and Ordinals. Popular options include Xverse, Unisat, and Magic Eden.
- Purchase Bitcoin from a cryptocurrency exchange.
- Send the purchased Bitcoin to your wallet, ensuring you use the correct Bitcoin payment address.
- Navigate to a decentralized exchange (DEX) like Magic Eden and locate the project you wish to invest in.
- Pay for the tokens using your Bitcoin address but provide your Ordinal wallet address to receive the Ordinals into your wallet. Below is a screenshot showing the difference between the Bitcoin payment address and the Bitcoin ordinal address.
Can you make money with MEME Shitcoins?
Can you make money with meme shitcoins on Bitcoin? While many argue Bitcoin is digital gold, others see it as gambling and speculation. When it comes to meme shitcoin protocols on Bitcoin like Runes, Ordinals, and BRC20, there’s little debate about the nature of the investment—it’s pure degenerate gambling and speculation.
Casey, the creator of Rune, has emphasized that these protocols are purely for speculation and gambling, made for fun. However, in the crypto world, gambling and speculation can pay off if you bet on the right project supported by the right community and creator.
To make money with such protocols, it’s essential to be early to the party and understand your risk tolerance and the market cap of the projects. Here are a few ways you can increase your chance of making money finding early or good meme coins on Bitcoin:
Be active on Twitter: Twitter can keep you updated on the latest trends and discussions surrounding meme coins, giving you insights into potential opportunities. Follow people who are well-reputed in the Bitcoin space creating various applications.
Understand the narrative and meme culture: Crypto space is often driven by narrative. Understanding the narrative and meme culture helps you identify coins that have the potential to go viral, driving up their value.
Be aware of market cap and token distribution: Checking market cap and token distribution on websites like Luminex and Magic Eden can provide valuable information about a coin’s potential for growth and its risk level. Find coins are evenly distributed and undervalued and thus have growth potential. Below is a screenshot from a Bitcoin meme token top holder distribution:
Try Farming for airdrop without the risk: Farming for airdrops presents an opportunity to potentially earn tokens without direct investment, making it an ideal entry point for early education and understanding of meme coins without financial commitment. Farming involves participating in community quests or social media engagements in exchange for token allocations. For instance, in the meme coin space like Stakeland, engaging in farming quests can lead to early token gains.
Be risk-tolerant and have patience: Being risk-tolerant and patient is crucial in the volatile world of meme coins. Prices can fluctuate wildly, so having the stomach to weather ups and downs and the patience to wait for the right moment to buy or sell can increase your chances of success.
Conclusion
In conclusion, the emergence of meme coins or “shitcoins” on the Bitcoin blockchain represents a fascinating intersection of innovation, speculation, and meme culture within the cryptocurrency space. Protocols like Runes, BRC20, and Ordinals have leveraged various mechanisms to enable the creation and trading of these alternative assets on the Bitcoin network, offering both excitement and risks for investors.
While some may view these ventures as pure speculation, others see them as opportunities for potential gains within a rapidly evolving ecosystem. Understanding the market dynamics, staying abreast of trends on platforms like Twitter, and grasping the
Mortuza is a certified Digital marketer with a Master’s degree in International Economic Relations (Spec. International Business).
An entrepreneurial professional, crypto native, and deeply involved in web3, i.e., blockchain, NFT & metaverse community. The author spends hours researching all the exciting new trends in the broader business world.