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With the fire of Shiba Inu coin, many investors have turned their investment attention to it. This article will help you answer a question: Is Shiba Inu a Good Investment
What is Shiba Inu?
Before we know that Shiba Inu coin is a good investment, let’s first understand what Shiba Inu coin is:
Shiba Inu, also called SHIBUSD, is an Ethereum-based alternative coin featuring a Japanese breed of dog used for hunting. Shiba is an alternative to Dogecoin but is more superior to Dogecoin. So, Shiba Inu enthusiasts refer to it as “The Dogecoin Killer.”
You see, Shiba Inu is a meme coin, meaning it is a cryptocurrency associated with a theme, in this case, the Shiba Inu dog. Over the past years in the crypto world, there has been a rise in meme coins as many investors flock to them hoping to make real money. Because of this, meme coins are launched as an inside joke instead of a digital product with some utility. This coin is now two years old as it was created in August 2020 by an anonymous group called Ryoshi.
Shiba Inu’s Price History
The price of Shiba shot by 300% early in the year. Consequently, this price shot moved the coin to the top cryptos globally, given the 24-hour trading volume in October 2021. Thus, the trading activity of the meme coin got as high as that of Ethereum that month.
The coin started as a mere fun token, however mainstream attention early in 2021. Afterwards, it became even more attractive given its low barrier to entry. Even today, it is still one of the cheapest coins available compared to many other famous cryptocurrencies.
Comparison Between Shiba Inu and Other Cryptocurrencies
Shiba Inu Vs. Dogecoin
The two coins have a few similarities and differences. First, both of the coins are based on the small breed of Japanese dogs. Unfortunately, they all have a community of loyal fans. A culture of social media activities also supports the community. Light-hearted memes also support the growth of the coin. However, both do not have a lot of real-world utility.
Both coins are used to pay for stuff, with Shiba Inu having a decentralized exchange, ShibaSwap. ShibaSwap is instrumental in generating even more SHIB-related tokens. Even with their lack of functionality, they continue to take on the cryptocurrency space by storm. They all have the same market capitalization as a large multinational company.
Dogecoin has over 132 billion coins yet, and it continues to issue more cash with each passing day. The coin gives more than 5 billion new coins with no cap every year.
Shiba Inu’s co-founder, on the other hand, authorized one quadrillion coins. He gave nearly half of that to Vitalik Buterin, the founder of Ethereum. Buterin burned approximately 40% of the total in existence and locked about half of the remaining into the Uniswap exchange. His move was to guarantee liquidity.
The market capitalization of a coin means the total value of the existing coins. When the number of available coins grows, the market capitalization consequently grows or equals. You get the market capitalization of a coin when you multiply the number of coins in existence with the current trading price.
Since there are about 549 trillion Shiba Inu coins selling at around $0.000042, it follows that the total value of the coin stands at approximately $24 billion.
Dogecoin, on the other hand, has approximately 132.3 billion coins. Currently, it is trading at around $0.20 per coin. Hence, its market capitalization is about $27 billion.
Since these coins are among the most common cryptos, they seem insignificant to Bitcoin. Furthermore, Bitcoin’s market capital surpasses $1 trillion depending on its selling price. Therefore, Shiba Inu and other cryptos cannot exceed Bitcoin.
Shiba Inu and Dogecoin both trade on major exchanges like Bitfinex, Coinbase and Kraken.
The technology of Shiba is based on the Ethereum blockchain. On the other hand, Dogecoin uses computing power for its blockchain. This technology that its primary token SHIB is an ERC-20. On the other hand, Dogecoin is based on Litecoin, the little brother of Bitcoin. Thus, Dogecoin and Bitcoin share the same technology.
|Approx. Circulating supply.||550 trillion||132 billion|
|Twitter followers.||1.6 million||2.3 million|
|Merchants that accept the coin.||103||More than 1900|
Shiba Inu Vs. Bitcoin
Although these two cryptos are very different in technical particulars, they also share something in common. Here is how they differ from each other.
First, the SHIB token operates on the Ethereum blockchain, unlike Bitcoin’s Litecoin. Second, when used as a mode of payment, it is much faster than Bitcoin and even Dogecoin, one of its major rivals. Even though Ethereum has had a problem with congestion in the past, the 2.0 upgrade will end this.
Demand and supply
Demand and supply are often considered in investments. Therefore, the latter and the former are key drivers of the coins’ price. Being deflationary, Bitcoin continues to become scarce with each passing day. Bitcoin’s deflationary mechanism is thus implemented by having the reward given to the miners. Miners are rewarded with a BTC whenever they complete a new block halved regularly. Bitcoin’s total supply capital of 21 million coins. BTC, therefore, increases its value by scarce.
On the other hand, Shiba Inu developers suggested a supply cap of 1 quadrillion. The current circulating supply of SHIB is 500 trillion. Therefore, the developers gave a large amount of the SHIB to Vitalik Buterin, the co-founder of Ethereum. Shiba Inu plans to supply the coin in abundance rather than a deflationary coin. Increasing the supply will consequently lead to the excessive circulation of the Shiba Inu coin. As a result, the value exchange will support DeFi activity.
Shiba Inu Vs. Cardano
Aside from being an open-source blockchain platform, Cardano is also decentralized. The platform’s consensus is therefore achieved using Proof of Stake. Ethereum co-founder Charles Hoskinson founded crypto in 2015. Cardano’s internal crypto, ADA, thus facilitates peer-to-peer transactions. On the other hand, Shiba Inu was created in 2020. Unlike Cardano’s total supply of 33 trillion, Shiba Inu boasts 549 trillion.
|Market cap||18,810,674,720 USD||40,697,395,800 USD|
|Category||Memes, Doggone Doggerel||Mineable, Cardano Ecosystem Dos, Pos, Platform, Smart Contracts, Research, Staking, Binance Smart Chain.|
Shiba Inu Vs. Litecoin
Litecoin was founded in 2011 by Charlie Lee. It is, however, important to note that Charlie Lee is not only the founder of Litecoin but also a former Google engineer. Charlie founded Litecoin two years after the creation of Bitcoin. It is also based on an open-source global payment network controlled by any network authority. Therefore, its price cannot rival Bitcoin. On the other hand, Shiba Inu is different from Litecoin since this is strictly a meme coin. When this article was going live, Shiba Inu compared to Litecoin.
|Market Cap||18,749,227,448 USD||10,364,571,100 USD|
Shiba Inu Vs. XRP (Ripple)
XRP (Ripple) was launched in 2013, seven years before Shiba Inu was launched. Therefore, the coin features among the world’s largest digital asset projects in the cryptocurrency space. Although the capitalization of the cryptocurrency is several billion dollars, investors still consider SHIB to be a low-value asset. Crypto is used for global payments by more than 250 banks. Therefore, the coin is loved for its minimal fees and impressive transaction time, just like Shiba Inu.
|Supply||$549,058 trillion||$47.247 trillion|
What Do Other People Say About Shiba Inu?
The price of cryptocurrencies has been heating up over recent years. Nonetheless, investors are yet to rush to invest in this relatively new coin, Shiba Inu. Therefore, Shiba Inu is not an excellent long-term investment.
Consequently, the value of the Shiba Inu coin may experience a downfall by the close of 2022 and range between USD 0.000029 to USD 0.000016. On the other hand, Digital Coin Prince believes that the price of the coin will increase and that by the end of 2021, it will be at USD 0.000044. On the other hand, Gov Capital predicts a huge fall to USD 0.000006.
Where to buy Shiba Inu
Shiba Inu coin is available for purchase in all major exchanges such as Binance, Coinbase, Gemini, FTX, Huobi Global, KuCoin, and more.
How to buy Shiba Inu
The two main decentralized exchanges where you can buy the Shiba Inu coin, the first one is the ShibaSwap platform. The process is as follows. First, you must connect your Ethereum-based wallet. To do this, click on “Connect Wallet”, denoted by a red arrow on the top right corner.
Consequently, you will see three different wallet options shown in white arrows. These are Metamask, Wallet Connect, and Coinbase Wallet. Finally, download the wallets if you have not yet used them. When all these processes are complete, the buying process is straightforward.
Should I buy Shiba Inu?
Yes, Shiba Inu has a strong community. Even though more than 10,000 cryptos exist in May 2021, only a few are likely to survive over the long term. Thus, Shiba Inu has a strong community. Indeed, cryptos with a strong community are safe. Thus, Shiba Inu is safe to buy and can stand the tests of time. So Shiba Inu is a good investment
Shiba Inu Price Prediction
According to Wallet Investor, the average price of the coin in December 2021 will be between $0.000032 and $0.000047. The upper range is $0.000061. In 2022, the price of the coin will continue rising further. To illustrate the dynamics, we divided 2022, January to June and July to the end of the year. Digital Coin Price predicts that the price will be $0.0000828440 by January and $0.0000769821 by the end of June. In the second phase, the upward trend will still hold. It will be $0.0000826739 by the end of December 2022.
For more details, please read this article: Shiba price prediction
Summary:Is Shiba Inu a Good Investment
Finally, the Shiba Inu coin is cost-effective according to its trading price. Cryptocurrency experts believe that investors of this coin could realize a 100% profit from the coin in the future. They believe that there are high chances that SHIB prices will triple or even quadruple. Then, it is high time you invest in this coin.