What is Shiba inu? Everything you need to know

The saying "every dog has its day" rings true for Shiba Inu, a cryptocurrency inspired by the Japanese dog breed. Since its debut, it has surged in popularity, captivating investors and enthusiasts. However, its value can skyrocket and plummet rapidly, as seen in October 2021 when it surged by 173% in a week before swiftly dropping. It's crucial to understand the extreme volatility of cryptocurrencies, especially meme coins like Shiba Inu. Explore its unpredictability, future prospects, and current price trends.

Understanding Shiba inu

Shiba Inu, an altcoin introduced by the pseudonymous figure Ryoshi in August 2020, draws its name from the beloved dog breed. Its white paper, affectionately dubbed the "woof paper" by the Shiba community, outlines its launch on the Ethereum blockchain for its established security. The founder states that half of the coin's supply is locked in a Uniswap liquidity pool, while the remainder was initially sent to Vitalik Buterin, Ethereum's co-founder. However, Buterin chose to burn most of the tokens, effectively removing them from circulation. He also generously donated a significant portion to various charities, including the India COVID-19 Relief Fund.

Shiba inu coin value

According to CoinMarketCap, Shiba Inu cryptocurrency is currently priced at $0.00001032 as of October 17, marking an 87% drop from its peak of $0.00008 on October 26, 2021. Its market capitalization stands at $5,673,822,815, securing its position as the 15th top cryptocurrency.

Safety considerations

The safety of any cryptocurrency depends on its design and function. Shiba Inu, being an altcoin, relies heavily on community support for its success rather than utility. While described as an "experiment" for decentralized community building in its whitepaper, investing in Shiba Inu or any altcoin carries inherent risks due to their differences from Bitcoin in structure, usage, and supply. Bitcoin, with its carefully crafted blockchain and scarcity, holds potential as a widely accepted digital currency, unlike Shiba Inu, making it a speculative and risky investment. Therefore, it's essential to only invest what you can afford to lose in cryptocurrencies.

Where to purchase shib

Shiba Inu can be bought on ShibaSwap, the project's native exchange, as well as on various platforms including Binance.US, Coinbase, and KuCoin. Here's how to buy Shib through Binance.US:

Bank transfer: Link your bank account to Binance.US and use it as your payment method for purchasing Shiba Inu.

Trading: Exchange your existing cryptocurrencies for Shib directly on Binance.US.

Credit card: Purchase Shib using your debit or credit card, including Mastercard or Visa, through Binance.US.

If you reside in a state with restrictive cryptocurrency regulations, consider buying Shib from platforms like KuCoin as part of a trading pair. For instance, KuCoin provides an example where you can acquire Shib through the Shib/USDT trading pair, followed by exchanging USDT for Shib.

Use cases

While some rumors circulate, a Porsche dealership in Baltimore has indeed started accepting Shib, among other cryptocurrencies, as payment for their cars. However, purchasing a 2022 Cayenne SUV would require about 3.8 billion Shib, equivalent to approximately 0.69% of the total Shib coins in circulation.

More likely to influence Shib's value is its listing on Robinhood, offering broader exposure to investors. Additionally, the Shiba Inu metaverse project nears completion, with plans for a public land sale following a 10-day bid-and-hold event. This sale will enable users to mint over 100,000 lots for income generation. ShibaSwap has collaborated with The Third Floor, a Hollywood studio, to visualize, design, and construct the Shiba Inu Metaverse.

A Shib-based game, Shiba Eternity, debuted in August and globally launched on October 6, aiming to boost demand for Shib and reduce coin supply through burning, thus enhancing its scarcity.

Nonetheless, for most investors, the risk-reward ratio of Ethereum, Bitcoin, and major altcoins like Cardano has been more promising compared to Shib. While purchasing a few coins for amusement is fine, heavy investment in Shib is cautioned against, considering its uncertain future value.

It's crucial to recall Shib Inu's significant price decline last fall. Although general market volatility likely played a role, the plunge has been linked to actions by a mysterious billionaire.

Potential crashes

An anonymous individual bought 70 trillion Shib coins for $8,000 in August 2021, which surged to $6 billion at the currency's peak. However, suspicions arose as over 40 trillion of these coins were transferred to four crypto addresses, hinting at a possible flood of Shib into the market. Moreover, concerns mount that the anonymous billionaire might sell their assets soon, prompting other traders to follow suit, exacerbating the current bear market.

It's crucial to recognize that Shiba Inu holds no intrinsic value; its perceived worth is purely entertainment-based, despite its substantial market capitalization. With this in mind, investing heavily in Shib is ill-advised. While it may yield quick returns, it lacks reliability as a long-term investment.