SafeMoon and Bitcoin are rarely mentioned in the same breathe as they appear to represent two very different types of cryptocurrency projects. However, digging beneath the surface a little reveals one or two similarities between the two - particularly when it comes to investment potential.
Bitcoin is a token that really needs no introduction. It was the coin that introduced the world to blockchain technology and since 2009, it has dominated the top spot when it comes to token value. However, the industry has changed beyond recognition in that time and new subcategories of tokens continue to emerge.
One such subcategory is that of the meme coin. Initially started with the launch of Dogecoin in 2013, meme coins were a means of satirising the hype that surrounded cryptocurrency investment at the time. However, more recently they have emerged as a popular trend, with the top tokens in the space seeing price growth of several hundred per cent throughout 2021.
So on the one hand we have Bitcoin, the first-ever cryptocurrency, still number one by market cap and easily the most famous token of all, and on the other, we have SafeMoon, a meme coin that was only launched in March 2021 and whose fortune depends almost entirely on building an online following. Is there really much of a choice here for investors?
In the following comparison, we’ll be weighing up SafeMoon vs Bitcoin and considering which token has the most potential for growth in 2022. We’ll also be considering each project’s long-term viability, as well as seeing what industry analysts are predicting over the course of the next 12 months.
Bitcoin vs SafeMoon - An Overview
Bitcoin and SafeMoon could ostensibly be considered as being at two ends of the same scale. At one end you have the original cryptocurrency, set up to offer an alternative to cash, at the other, you have a relatively new token that is intended to capitalise on the popularity of cryptocurrency investing.
However, if we take a look at each project in more detail, we’ll see that aside from some significant fundamental differences, there are also some ways in which Bitcoin and Safemoon are similar.
SafeMoon
Background
As we’ve mentioned, SafeMoon was officially launched in March 2021, placing it amongst the newest tokens on the market. The name itself is a reference to the popular trading phrase, ‘to the moon’ meaning substantial price growth. The team behind SafeMoon claim that their protocol will allow this to happen steadily and with reduced risk.
That being said, SafeMoon is a meme coin - and meme coins aren’t traditionally associated with stability. However, SafeMoon has some interesting mechanisms built into its protocol, which will come to shortly. Being a meme coin, SafeMoon doesn’t purport to solve any existing issues or bring blockchain to a new industry, in its essence it is simply a means of value exchange - much in the same way that Bitcoin is.
Despite its reasonably short existence. SafeMoon has already carved out a respectable following, with almost 300k subscribers to the SafeMoon subReddit and support from a few online celebrities. As we know, online support is a crucial factor when it comes to meme tokens, so SafeMoon’s early momentum is certainly a good sign.
Aside from the SafeMoon token, the project’s website is also advertising a soon-to-be-launched decentralised exchange, which promises a whole new approach to so-called ‘cryptonomics’.
Token fundamentals
We made reference to SafeMoon’s apparent stability earlier and this is one of the more interesting elements of the project. Whereas their high volatility has traditionally meant meme coins were seen as little more than an opportunity for day traders by any serious investor, SafeMoon seeks to reduce that volatility and encourage long term investment by actively deterring sellers of the token.
SafeMoon has an in-built mechanism wherein anyone selling the token is subject to a 10% fee. Half of this fee is then redistributed amongst the remaining token holders. This means that those holding the token long term will receive a passive income from anyone selling SafeMoon. In theory, this should discourage day trading of the token.
Whilst there are no guarantees that SafeMoon’s reflection system will actually stabilise prices, it certainly presents an appealing opportunity for those who prefer to put their tokens to work rather than just keeping them in their wallets in the hope prices will appreciate. The mechanism also gives SafeMoon a distinct advantage over other meme coins, including the infamous Dogecoin.
Supply and Demand
SAFEMOON’s supply is capped at 1 quadrillion tokens, with some 575.5 trillion in open circulation. There is also a burning mechanism in effect - a burn wallet on the network receives its share of the reflection, meaning the tokens are permanently taken out of circulation.
Effectively, this means SafeMoon has an in-built deflationairy mechanism and will become scarcer over time.
In addition to being redistributed amongst holders, half of the 10% SafeMoon seller fee is sent to liquidity pools. This means that there is a steady supply of the token for those looking to buy into SafeMoon. The main SafeMoon liquidity pool - at the time of writing at least - is on PancakeSwap.
The way in which SafeMoon penalises sellers of the token, redistributes the fee and has an automated liquidity function should, in theory, create a price floor and prevent whales from suddenly dumping the token and sending its price crashing.
Check Out: 5 Reasons Why Safemoon Could Double Your Money
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Bitcoin
Background
It’s probably safe to say that every cryptocurrency investor knows Bitcoin’s origin story. The original cryptocurrency exploded onto the scene in 2009, following the publication of Satoshi Nakamoto’s original whitepaper. It was quickly suggested that this new digital currency had the potential to permanently disrupt the world of finance.
Whereas Bitcoin was once a revolutionary way to offer a secure, digital means of value exchange, blockchain technology has long since evolved to offer complete financial ecosystems, largely thanks to smart contracts, which are not supported by the Bitcoin blockchain.
Whilst Bitcoin may no longer be the most advanced cryptocurrency out there, it is undoubtedly the most valuable - and by a considerable margin. This is an example of how technical particulars do not necessarily equate to value in the world of cryptocurrency and this is something of a similarity between Bitcoin and meme coins like SafeMoon - both trade largely on reputation and established followings.
Transactions and Speed
Bitcoin’s biggest weakpoints at this stage are its comparatively slow transaction times, lack of scalability, and the huge amount of resources required to maintain the blockchain. Realistically, these factors could affect its long term viability - especially when compared to Ethereum-based tokens, like SafeMoon.
Bitcoin uses a proof-of-work consensus mechanism underpinned by the SHA-256 algorithm. Whilst this does make the network highly secure, it does mean that BTC transactions are slow by today’s standard - with a block creation time of ten minutes meaning Bitcoin can only handle around 5 transactions per second. To put this in perspective, Ethereum can handle around 20 - and this is likely to increase dramatically when the 2.0 upgrade is complete.
Given its slow transaction rate, Bitcoin is unlikely to ever be a widely adopted means of retail payment, as was originally intended. However, there is also increasing concern about the environmental costs due to the power consumption of BTC miners- and this is something that could affect its price in the very near future.
Supply and Demand
Bitcoin has a total supply cap of 21 million, as well as an in-built deflationary mechanism that is intended to increase the scarcity of BTC as time goes on and thus, in theory, increase the token’s value.
New Bitcoin is released into the ecosystem by miners, who are rewarded for their work in maintaining the network with new BTC. However, the reward they receive is periodically halved and has been throughout Bitcoin’s existence, meaning fewer and fewer tokens are being released as time goes by.
It’s also worth noting that many large-scale cryptocurrency investors buy Bitcoin with the intention of holding onto it long term. This means that they are effectively taking BTC out of circulation for extended periods. This again serves to increase its scarcity and could service to push up the value of BTC.
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Bitcoin vs SafeMoon: Which Is The Better Investment?
Realistically, it’s pretty difficult to draw up a comparison of Bitcoin vs SafeMoon. Not only are they targeting a different investor demographic, but SafeMoon is a much newer project. This means there isn’t a great deal of data to work with for making price predictions. On the other hand, it’s easy to look back over the BTC charts and see how it has previously responded to particular circumstances and market forces.
Despite this, we have to work with what we’ve got when it comes to making forecasts. We need to consider information from various sources and collate it to try and build an investment strategy. Of course, there are no guarantees but careful research will give us some idea of what we can expect from each token in the near future.
SafeMoon Vs Bitcoin: Price History
First thing’s first, we need to take a look back at each token’s previous price movement. This is what analysts use to generate their price predictions and it allows us to get an idea of what each token’s price bands have been up until this point.
SafeMoon
SafeMoon is a fairly new project, having only launched in 2021. This means we don’t have a huge amount of information to go on. It’s also worth bearing in mind that SAFEMOON launched at an incredibly bullish time for the cryptocurrency market, which makes it harder to figure out what its price movement would likely be under normal circumstances.
SafeMoon does not even resemble Bitcoin when it comes to token value. It had an initial trading price of approximately $0.00000004 and has it seems to be a long, long way off approaching even a penny. However, growth is all about percentages and SAFEMOON soared by several thousand per cent in its first few weeks, hitting a token price of $0.000007.
Such impressive growth did not go unnoticed and even the more casual cryptocurrency investor started to take note of this new meme coin. It wasn’t long before another buying frenzy sent SAFEMOON to its all-time high of $0.000010 in May 2021. This was another substantial increase in percentage terms and helped to boost SAFEMOON’s profile even more,
Things went downhill for SafeMoon across the summer months of 2021, with its token price dropping to around $0.000001 by October. However, things soon turned around and SAFEMOON increased to $0.000006 before the start of November.
At the time of writing, SafeMoon is valued at $0.000002016.
BTC
Bitcoin is famous for its incredible bull markets and is largely responsible for the popularity of cryptocurrency investment today. Having been more or less worthless when it first launched, BTC has already reached a staggering $1,242 per token just two years later. This represented huge growth and earned Bitcoin a reputation as something of a millionaire maker.
However, in the early days of cryptocurrency, there was a lot of scepticism and Bitcoin was no stranger to significant downturns. The most notable one to date came after the now-infamous cryptocurrency bubble, when prices of BTC reached a peak of $19,783 by the start of 2018 before the bubble burst and it came crashing down to $3,430 by the end of the year. Spooking many investors in the process.
Bitcoin wasn’t down for long though and it went into 2021 work over $23k per token. This was before the first of several record-breaking price runs. The first came in January, with BTC soaring to $40,000. Things then cooled for a week or so before another bull hit in February and Bitcoin hit a then-record price of $64,804.
There were then further price increases in April and May before the market hit a significant downturn and BTC dropped to $31,399. However, since then Bitcoin has gone on to hit another all-time high, reaching $69,044 in November.
At the time of writing, BTC stood at $41,882.79 per token.
SafeMoon Vs Bitcoin: Future Predictions
Looking back at a token’s past movement can tell us a lot about how it responds to certain economic pressures, but ultimately investors are more concerned with what future price movement is likely to be. Whilst nothing can be guaranteed, looking at a few market analysts’ forecasts can tell us what’s expected of each token.
SafeMoon
First thing’s first, it’s worth remembering that SafeMoon is a meme coin and thus its price movement will be more affected than online communities than other tokens might be - and such community trends are notoriously hard to predict. With this in mind, the following forecast should be seen as suggestive only.
If we look at DigitalCoinPrice it seems big things are predicted for SafeMoon, with substantial growth expected across the next year or so. In fact, the platform is predicting that SAFEMOON will have almost doubled in value by the end of Q1 2022. Things are then expected to cool slightly, but by the end of the year, SafeMoon is expected to be up 30.98% on its price at the time of writing. Going into 2023, the token is expected to rise again, hitting a potential high of $0.00000351542 - an increase of 74.38%.
Meanwhile, TradingBeasts also sees significant growth in SAFEMOON’s future. Its data suggests that the meme coin will be up by 152.98% as 2022 ends. In 2023 the site predicts the value of Safemoon to have risen by 237.3%.
We found another positive SafeMoon price prediction over at Coinpedia. According to its technical analysis, the meme coin could have grown by up to 90% in the first half of 2022. Whilst this does represent a best-case scenario, it’s certainly a good sign that it seems to be in line with the predictions outlined above.
Read Also: SafeMoon Price Predictions
BTC
Its become pretty much standard for Bitcoin price predictions to be overwhelmingly positive. This certainly bodes well for the wider cryptocurrency market, but once again, nothing is guaranteed and even Bitcoin should not be seen as a ‘sure thing’.
First up, DigitalCoinPrice, has made a pretty ambitious Bitcoin price prediction for 2022. Its technical analysis has the coin rallying several times throughout the year. The token price of BTC is expected to go back to the $60k mark as early as February, hitting $61,059.62. However, things are expected to cool towards the end of the year, with BTC predicted to be worth $57,956.60 in December. Further growth is then predicted, with BTC trading at $74,150.08 going into 2023.
Elsewhere, WalletInvestor is also predicting a good year ahead for Bitcoin, though perhaps a little more subdued than DigitalCoinPrice. It has the token potentially reaching $54,728.30 by the end of February 2022 and continuing to grow month-by-month until eventually smashing the $77k barrier before December is out.
The Economy Forecast Agency is not as positive about BTC’s future potential. It has the token dropping to $26,448 by mid-2022 and ending the year having slightly risen to $31,268.
Once again, these predictions are highly speculative, but the degree of uniformity between them is certainly a positive sign.
Check Out: Bitcoin Price Predictions
Bitcoin Vs SafeMoon: What the Experts Say
Expert opinions are exactly that - opinions. The term expert is also open to interpretation. However, it's always worth paying attention to what key industry figures and even celebrities are saying about particular projects as they often herald price movement. This is particularly true of meme coins like SafeMoon.
Bitcoin has plenty of support of course. One of its most ardent supporters has been Galaxy Digital’s Mike Novogratz. He believes that institutional investors will help Bitcoin continue to maintain its high price. “Every single bank is working on their own crypto project, how they can get bitcoin to their wealthy clients,” he said. “I think a lot of clients that didn’t buy it the first time will see this as an opportunity to buy it and get involved.”
It’s probably fair to say that SafeMoon doesn’t quite have the same level of mainstream support that BTC does. However, it has proven a hit with social media characters like Jake Paul, Jesse Wellens, Daniel Keem and DJ AfroJack - all of whom have promoted the token on platforms like Twitter and Instagram.
To find out what the average investor is thinking, it’s also worth checking out each token’s subReddit. These are good places to get an idea of current sentiment - Reddit was also the crucible for many a price rally throughout 2021.
Bitcoin Vs SafeMoon: Conclusion
Bitcoin and SafeMoon are very different projects from a technical perspective, but as we have seen, they share certain other characteristics. The main one being that neither token has a genuine real-world use case beyond value exchange. With this in mind, it could be said that choosing between them comes down to how much risk an investor is willing to take on.
But is SafeMoon really that much riskier than Bitcoin, given that it has its in-built mechanism to manage volatility? Bitcoin has maintained a high price for years now, but it's no stranger to significant downturns. Realistically, there are no safe bets in the cryptocurrency market. The only consideration is that SafeMoon may not bounce back from a big downturn, whereas Bitcoin can likely weather a bigger storm.
When it comes to analysts’ forecasts, both SafeMoon and Bitcoin are expected to perform well in 2022. In fact, both coins are widely predicted to have doubled in value by the time 2023 gets underway, so it seems that now could be an opportune time to add either one to your portfolio.
When it comes to token value, it's worth bearing in mind that a single BTC coin will set you back $58,695 whereas a single SAFEMOON token stands at just $0.000003. This means that you can acquire a much bigger holding of SafeMoon with minimal outlay. Of course, this makes no difference when it comes to returns but it can be a psychological advantage for some investors.
Whichever token you choose to invest in, remember that diversity is just as important in cryptocurrency investment as it is with any traditional asset. Be sure to consider adding other projects to your portfolio in order to mitigate risk.
How To Invest In Cryptocurrency In 2022
If you want to buy cryptocurrency in 2022 then you’ll need to find a suitable broker or exchange. There are quite a few to choose from - including many decentralised exchanges that allow you to swap one token for another.
We recommend eToro for most investors, as it is a trusted name that provides a reliable and secure brokerage service. eToro also has a very approachable trading platform, so it’s perfect for those relatively new to retail investment.
You’ll need a few details to open an account, along with a proof of identity, but once you’ve filled out the short application you’ll have instant access to the cryptocurrency market - as well as a range of other trading instruments.
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FAQs
Can SafeMoon overtake Bitcoin?
Bitcoin has dominated the cryptocurrency market for many years now and it seems that investors are constantly speculating on which token could eventually unseat the original cryptocurrency. Whilst meme coins like SafeMoon have a lot of investment potential, it is likely that they will ever overtake Bitcoin. For one thing, investors turning away from Bitcoin are likely to shun SafeMoon for similar reasons.
Will Bitcoin double my money in 2022?
Bitcoin price predictions in 2022 are widely positive and many top analysts have BTC approaching 100% growth over the coming year or so. However, many also foresee a slight downturn at various points, so investors will need to keep a close eye on developments.
How do I buy cryptocurrency?
Buying cryptocurrency is easier than ever before, thanks to the plethora of online brokers. We recommend eToro for most investors, as it's a highly regarded brand name with an award-winning trading platform that's suitable for both novice and more experienced investors.
Is SafeMoon a good investment?
Many investors are wary when it comes to meme coins, as they have a reputation for being even more volatile than other cryptocurrencies. However, SafeMoon as sought to solve this issue with its selling fee that is intended to deter high volume trading. Only time will tell whether this proves to be successful or not, but SafeMoon is expected to perform well in 2022, according to several top analysts.
What is a meme coin?
Meme tokens started with Dogecoin and were originally intended to poke fun at the hysteria surrounding the cryptocurrency market. However, in an ironic twist of fate these tokens have gone on to be highly sought after in their own right and the likes of DOGE, SHIB and SAFEMOON have offered investors significant returns in recent months.
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