Can the New Crypto Craze Push Shiba Inu to $1
Whenever I write about an investment asset that I hold, I let my readers know before I go much further in the article. So, this is neither a pump nor a dump treatment. Most articles and op-eds written about Shiba Inu have been very negative over the past two years. However, since this cryptocurrency has shown a new promise of growth, the financial media is warming up
In 2023, the cryptocurrency market witnessed an astonishing surge, signaling the end of the harsh crypto winter. With renewed optimism
During the crypto frenzy of 2021, Shiba Inu emerged as a dark horse, boasting an unprecedented growth of over 28,000,000%. This meme coin skyrocketed to become the 19th most valuable cryptocurrency globally. Now, all eyes are on Shiba Inu as it sets its sights on the elusive $1 milestone. But can it attain such a feat?
Shiba Inu's Transformation
Various factors influence cryptocurrency prices, with demand being a significant driver often fueled by the utility the currency offers its holders. Additionally, speculation plays a crucial role in the volatile crypto market.
During the previous bull market, Shiba Inu's meteoric rise was primarily speculative, lacking distinctive features or utility compared to its counterparts. Recognizing this deficiency, Shiba Inu's developers embarked on a journey to enhance its utility
Remarkably, substantial progress has occurred. Today, Shiba Inu offers utility comparable to leading cryptocurrencies, including applications in yield farming, NFT transactions, and participation in the DeFi ecosystem. Moreover, ambitious plans are underway to launch a Shiba Inu-based metaverse.
Addressing the Issue of Supply
Despite its strides, Shiba Inu faces a significant challenge—its colossal supply. As of Feb. 7, over 589 quadrillion Shiba Inu tokens were circulated. To tackle this issue, a burn mechanism was implemented, aiming to reduce the supply. However, the effectiveness of this mechanism remains questionable, as the reduction in supply hasn't translated into substantial price appreciation.
Shiba Inu's $1 Dilemma
Shiba Inu's mammoth supply presents a formidable barrier to reaching the $1 mark. Achieving this milestone would necessitate an unimaginable increase of 9,816,570%, a feat unlikely to materialize. Even if Shiba Inu were to hit $1 per token, it would surpass the value of the entire world economy, making it an improbable scenario.
Should You Invest in Shiba Inu
Whether you invest in Shiba Inu or any other asset depends on your research, risk tolerance, and investing goals. However, let's critique this investment option.
The reality: Despite its past successes, the likelihood of Shiba Inu reaching $1 is doubtful. You must also consider cryptocurrency is still the wild frontier. It carries considerable market and fraud risk. Just look at FTX and Luna. Cryptocurrency investors also face the possibility of crippling national and global government regulations.
The upside: The current per-share price of Shiba Inu is around $.00001. This makes it a low entry point investment. So, suppose you have $1,000 to invest (or lose) in Shiba Inu. You could purchase close to $100 million in shares. If the price goes up to $.01 per share, your holding would be worth $100,000, depending on your exact entry point. For this reason, Shiba Inu doesn't need to go to $1 for you to make a substantial gain. You can also mitigate your risk
I refer to Shiba Inu as a "per share" investment for simplicity's sake. If you use an investing platform like Robinhood, you are actually converting your dollar currency into Shiba Inu, which you can spend through a cryptocurrency wallet. As more businesses begin to accept cryptocurrencies, this could be a great advantage. To be honest with you, I don't know the tax advantages of this arrangement. Maybe I'll research the tax implications of cryptocurrency for a new article.
Final Notes
It is a cold and unforgiving world out there. So, you should weigh any investment or purchase very carefully. Be wary of slick-talking charlatans who claim that they can make millions for you with sure-shot investments. Instead, continue to build your investor knowledge base
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