By now, most people are familiar with Dogecoin. Dogecoin is a cryptocurrency that started as a joke but actually gained mainstream popularity. Now, it’s one of the largest cryptocurrencies in the world with a market cap of about $18 billion. However, fewer people are familiar with Dogecoin’s cousin: Shiba Inu Coin (SHIB). Shiba coin investing is based on the friendly face of a Shiba Inu.
Shiba coin has risen an astounding 1,500,000% since it was created, including 21,700% in the past year alone. Despite this, it still costs just a fraction of a cent. With this in mind, let’s take a look at Shiba coin investing and whether or not it’s right for you.
What is Shiba Coin Investing?
According to Coinbase, Shiba Coin (SHIB) is a token that aspires to be an Ethereum-based alternative to Dogecoin. It has set itself apart from other coins by creating an absolutely massive supply. Shiba coin started with an initial supply of one trillion. Now, its total supply is about four quadrillion tokens. For reference, there will only ever be 21 million Bitcoins in existence.
This massive supply helps to keep the price of Shiba coin incredibly low. This way, it’s easy for everyday investors to buy up large amounts of Shiba coin.
Shiba coin also has an incredibly fast burn rate. A cryptocurrency’s burn rate is the process by which users remove tokens from circulation. Users can do this by bulk transferring tokens to a different wallet that is only designed to receive coins. Once the coins are in this new wallet, they cannot be used and are removed from the network. This lowers the total supply of coins in circulation and can help boost the price.
According to Bitcoin.com, Shiba Inu’s daily burn rate is approximately 26,000%. Some investors believe that this high burn rate could cause Shiba’s price to rise. Assuming demand stays the same, a decreasing supply will naturally lead to a higher price.
In addition to being a coin, Shiba also has an ecosystem. This ecosystem includes an NFT art incubator and the development of a decentralized exchange called Shibaswap. According to Shibatoken.com, Shiba currently has 585,000 community members.
Should You Buy Shiba Coin?
Shiba coin investing is not for the faint of heart. If you look at the five-year history of the coin, it can seem like a no-brainer. After all, Shiba coin is up 21,700% in the past year, right? If you had invested just $100 this time last year then you’d be sitting on $21,700 right now! What were you thinking?!
However, situations like these are always 20/20 in hindsight. In 2021, you had no idea whether Shiba coin …….