The aggregate value of most of digital currencies tripled in 2021. However, while Ethereum and Bitcoin accounted for most of the total digital currency cap, neither coin has created more buzz and made history in 2021 than Shiba Inu.
Being one of the most popular meme tokens to have taken off, Shibu Inu was launched in August 2020 to compete with Dogecoin and was dubbed the “Doge Killer.” Earlier last year, Shiba Inu managed to briefly overthrow Dogecoin and became the “alpha pup” in the market. Both these coins are currently competing to be the “goodest boy.” Right now, Doge is in the lead. But will Shiba take over DOGE in 2022? Is Shiba still a safe investment? Let us find out.
Shiba: The Basics
Investing in Shiba now could help you make sizable profits in the future.
Shiba is an ERC-20 token on the Ethereum network. The meme coin is built on top of Ethereum, which means it can use smart contracts to create much more advanced applications. The maximum supply of Shiba was set to 1 quadrillion tokens, which is much higher than most cryptocurrencies. Its enormous token size caused SHIB price to be much lower than most assets with similar market capitalizations.
SHIB showed historic gains when it increased by a margin of 50,000,000%+ in less than a year. So, how does the market value of any asset rise by such a whopping margin? It’s the same reason why Shiba Inu is an excellent investment for 2022.
Factors That Make SHIBA A Great Investment
Learn more about the aspects that could push SHIB into a worthwhile investment choice.
1. High Visibility
SHIB inspires dog-enthusiastic artists worldwide to foster what the creators refer to as the ‘artistic Shiba movement,’ bringing the community to the NFT market. This makes it one of the most-searched cryptocurrencies in the US, and more crypto exchanges than ever accept and support SHIB. As a result, the number of aggregate SHIB holders has surged above $1 million.
In addition to this, celebrities also have a significant impact on the value of crypto assets. Shiba Inu saw a major boost in prices after Elon Musk tweeted pictures of his dog Floki. This surge continued since, pushing the SHIB token to all-time highs. Musk is not the only celebrity to endorse Shiba. A few other popular supporters include Guy Fieri and Mark Cuban. With such names behind a project, you can be sure that it has a very high chance of doing very well in the future.
2. Accessibility and Security
Various crypto exchanges have added support for SHIB, making it an asset easy to access. For example, WazirX exchange, a subsidiary of Binance, one of the largest and most established crypto exchanges globally, listed Shiba Inu after Ethereum creator Vitalic Buterin donated about $1 billion worth of tokens to support Covid-19 containment in India.
Soon after, the coin doubled its price and has continued to rise since then. In addition to Binance, you can also find the SHIB tokens on Uniswap, Kukoin, Huobi Global, and other multinational exchanges.
The listing on all these exchanges means that users will not find it difficult to sell their coins. There will be more than a ready market. This aspect makes the token a worthwhile investment both in the long and short term.
3. Low-risk Investment
When Bitcoin started, very few people had any idea of what digital currencies were. Bitcoin tokens were trading at just a few cents per token. Those who made a move to try out the new venture then bought just a few of these tokens are now millionaires, especially those who were patient enough to hold on to the coins. At that time, it was a very low-risk investment.
It is the same case with SHIB, the meme token. It started as a joke mimicking Dogecoin, but it is now tracing its path. Soon, it might just fulfil its nickname of being the "Dogecoin killer" and end up being just a promising cryptocurrency as Bitcoin once was. Since its price is significantly low, it makes investing in it a very low-risk investment option and one you can consider.
4. Launch of Layer-2 Blockchain Shibarium
Layer-2 blockchains are built atop an existing blockchain framework and are usually focused on reducing fees, improving scaling, or speeding up the processing times associated with a network. However, since the ERC-20 token of Shiba Inu is built on the Ethereum blockchain, it ties Shiba Inu to Ethereum’s flaws - high transaction fees and potential slow processing speed.
The Shibarium update is expected to introduce lower fees or potentially no fees to complete transactions. This makes it critical for game development and NFTs involved in the Shiba Inu ecosystem.
Check Out: Should You Buy Shiba Inu? 5 Pros, 5 Cons
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
SHIB vs. Dogecoin: Which Is The Better Investment?
Shiba’s solid community and technical advantages make it a stellar investment option.
Investors wonder if they should choose Shiba Inu against its rival meme coin, Dogecoin. But what differentiates SHIB from its rivals is its status as the ERC-20 token. This indicates that the crypto runs on the Ethereum blockchain. As an Ethereum-linked token, Shiba Inu can participate in various decentralized finance (DeFi) projects. This functionality provides those on the Shiba Inu network with greater utility and real-world applications.
While both SHIB and DOGE tokens can be considered stores of value, Shiba Inu arguably provides more utility to its users. Additionally, the Ethereum network's move to the proof-of-stake model might also prove beneficial in this regard.
A Reality Check
While there are countless possible catalysts for this popular and promising cryptocurrency, Shiba Inu is also a volatile asset. Some of the drawbacks of SHIB are:
1. Limited Utility
Unlike Bitcoin and Ether, Shibu Inu does not have value outside the cryptocurrency market. Online business directory Cryptwerk lists over 375 merchants worldwide as accepting SHIB for payments, and most of them are crypto exchanges. Under its current architecture, it is not different from other digital currencies with respect to its transaction fees, structure, speed, etc.
2. Volatile
Crypto price rallies bring along high chances of extreme volatility. Currencies have the potential to fall as hard as they surge. If the current investors and market speculators pull out of the deal, the market will come crashing down.
3. No USP
Plenty of other projects have incorporated NFTs and games into their architecture, and therefore Shiba Inu offers no competitive edge beyond the category of doge-based cryptocurrencies. Furthermore, while SHIB has an excellent development team, they have not set it apart in terms of functionality.
4. Previous Trends
Learning from historical trends, payments that have skyrocketed in a limited time frame tend to reverse momentum and lose majorly in an equally short period.
Conclusion
Shiba Inu is not the safest investment, yet it has surprised its investors with astonishing profits. While it may be risky, with enough luck and liquidity, it can skyrocket again. So if you are looking for cryptocurrencies to buy now and hold in 2022, SHIB is a good option and makes for a safe investment.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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