Whether the shiba inu coin is a good buy or a bad buy?- Explained - The Comprehensive Minds


shiba inu coin is a good buy or a bad buy

Shiba Inu coin one of the newest community cryptos has soared a whopping 2 million percent this year, which is a meme coin also known as the Shiba token or shib and in today's article, we're going to explore the potential of whether the Shiba Inu coin is a good buy or a bad buy?. We will also answer the almighty question of how many Shiba Inu tokens do you need to be a millionaire?. These questions will be answered today. 

The Shiba Inu token was created back in august 2020 but recently surged to extreme highs, after riding a lot of the attention of Dogecoin with Elon musk campaigning the wave for Dogecoin. A lot of investors have been looking again for the next big coin, and with a lot of altcoins and meme coins riding the coattails of the bigger cryptos, it spawned off a lot of copycat-style coins. 

Some of them genuinely have interesting technology though, so far Shiba has a known community of around 165000 people and it's growing every single day. With all that being said Shiba in coin’s mission is to be the Dogecoin killer and over two million percent this year, who knows it might end up growing quite substantially it already has a market cap of 3.6 billion dollars which is more than what Dogecoin was trading at for ages, until a recent surge last month to about 60 billion us dollars but now has crashed to 42 billion dollars. 

Also Read:  Will SHIBA INU Coin Ever Reach One Cent? 

for Shiba and a new coin, there is a lot of catch-ups to do but remember Dogecoin went from eight to sixty billion dollars in just a few days. So it's a force that shouldn't be underestimated. They say that the coin is a deflationary coin which means they start with a max circulation of one quadrillion tokens, which is one thousand trillion and they then burn it down. 

They gave half of it to ethereum founder vitalik buterin in which they have called a burn. The other half was handed over to unit swap with the keys thrown away meaning that no devs hold any tokens. So why did Shiba Inu increase so significantly?. 

Well, the Shiba Inu coin lived in relative obscurity from august until earlier this year when a surge in interest for Dogecoin rove traders to find the next big thing. Shiba’s rise has been due to doge coin’s success which is a mixture of Elon musk, Twitter, Reddit, YouTube, and numerous news articles. A lot of YouTube channels have been consistently increasing the awareness of Shiba a new coin. 

Doge coin’s meteoric rise can be traced in part to the fallout of the GameStop saga in march which is when all the individual retail traders who fueled the GameStop’s massive short squeeze, then turned to joke cryptocurrencies to find the next big thing and started focusing on Dogecoin. Ever since then the price continued to increase from an average market cap of about 7 billion all the way up to around 70 billion with lots of movements from Elon musk and tesla. 

Rumors are saying as well as Elon musk tweeting the question whether tesla should start accepting Dogecoin as payment for tesla cars. Well if that happens then we'll likely see lots of growth ahead. So with the Shiba Inu coin and Dogecoin somewhat tied together in popularity one could help the other but also on the other hand if Dogecoin does flop a little bit it might create the opposite effect for Shiba as investors look for a new coin. 

Well, the Shiba token has had a huge surge from pretty much 37 satoshi units, which does not sound like much but in one month that is thirty thousand percent gains which is huge so with anything that rises that quickly and by that much with seven to eight billion dollars being pumped into it in a really short amount of time naturally some of that hype will calm down to find a new normal or a new baseline. 

Also Read: Shiba Inu coin announced plan to burn until it reaches $0.01

So this is where we start to see what is known as the correction, which is exactly what's happening at the moment which happens in any stock crypto or investment that is traded in a Public Market. The next factor we think is the controversy that hit the news where we saw the ethereum co-founder buterin who was given half of shiba’s circulation to hold on to transferred over a billion dollars worth of coins. 

This caused a huge market panic and a large sell-off of Shiba Inu but it was later announced that because of this money was supposedly given to him without his consent. He wanted to put some of it to good use and transferred it to the India virus relief fund for the current crisis that they're going through. 

It’s a really nice move on his part but also we can't ignore that with the value being over one billion dollars, which is about one-third of the current market cap that's one of the world's largest donations. Since this payment took place the price hasn't recovered as much yet, but the relief fund that received the payment promised on Twitter that they would treat the money with care and sell it off carefully, so as to not cause damage to shib and its value. 

However, if it goes up in value and goes to another surge we can imagine there'd be lots more news articles and YouTube videos that will fuel some of the growth further and put it onto the map. Likewise, if it crashes although a great time to buy might end up putting Shiba Inu in the shadows for quite a long time. So what could the Shiba Inu coin be worth ?. 

Well, the shib coin has some really interesting plans on its white paper and on the surface. The fact that Shiba was created with more purpose than Dogecoin technically and under the surface it's probably a better coin, but the real test is whether over time it can hold its value and media attention to keep climbing. Over time its values rise just like Dogecoin, even without having super clever technology like smart contracts or sleek payment technology. 

At the moment one of the big challenges for the Shiba Inu token is the current circulations. we've mentioned that the coin is a deflationary coin so they start with a quadrillion tokens and they're slowly being burned down. 

However, a big risk that we think will hinder a lot of this coin is the fact that they gave 50 percent of circulation to buterin and that means 50% of the coins are controlled by one person and that massively goes against what cryptocurrency is meant to be. It's meant to be decentralized not controlled by one particular government, person, or entity. 

It’ll always create a risk and we can only assume that they gifted him the fifty percent of the circulation hiking that buterin will never do anything with it but unless we missed something they should have just burnt the tokens because it goes against the value of a cryptocurrency. 

Over time if the circulation does drop a few more hundred trillion then it'll help the price somewhat and if shib had the same market cap as Dogecoin at the moment which is about 42 billion dollars, then for the value of Shiba Inu coin to hit one dollar we need the circulation to go down to about 4.2 trillion coins and to hit one dollar we needed to go down to just 42 billion in circulation. 

However, just 42 billion is still huge compared to bitcoin's 21 million but it would mean to go from today's 400 trillion down to 4.2 trillion. Well, that's a 98% reduction of coins in a supply greater than what's not as clear at the moment is how fast a shib will be burned over time because only then will be able to work out and truly understand how long it's going to take to burn down that supply. 

What we suspect is that a lot of this will require a lot of people using the shib exchange to bury those tokens and burn them over time. How many Shiba Inu tokens do you need to be a millionaire?

Well, let's go back to our original theory of Shiba Inu burning 98 percent of their supply from today's 400 trillion tokens down to 4.2 trillion. If you're still holding Shiba Inu tokens by then it means you'll need to have 100 million tokens to be a millionaire. 

However, Shiba has to be at one cent and at a market cap of 42 billion dollars. Becoming a millionaire is very appealing, though at the end of the day just make sure whatever you invest your money into, you're not putting in more than what you're willing to lose.

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