Yet another dog-inspired cryptocurrency has taken the internet by storm, and if you’ve been following along with the headlines, you already know the one I’m talking about.

Shiba Inu (SHIB) has – according to CoinGecko – climbed as much as 83,000,000% over the past 12 months.

In fact, a trader who bought $8,000 worth of SHIB in August 2020, shortly after the coin’s launch, now has a $5.7 billion windfall.

It’s certainly tempting to jump in when you see others reaping huge gains, but the road to riches may not be the joy ride it first appears to be.

As a member of Alternative Wealth Daily, you now have an entire team of experts in your corner – which means you don’t have to fall for the hype like those folks who read the headlines and invest before they understand what’s really going on.

So before you even think about buying Shiba Inu, this is what you need to know…

What Is Shiba Inu?

Shiba Inu is a basic Ethereum-based coin (it uses the ERC-20 standard). The creators were clearly spoofing Dogecoin (DOGE) – the dog in “doge” is a Shiba Inu. And like Dogecoin, Shiba Inu was initially thought of as a joke.

According to the project’s white paper, Shiba Inu is “an experiment in decentralized spontaneous community building.”

In other words, this project was trying to create a community, not solve a problem.

But that turned out to be a prescient insight. Such thinking lies at the heart of “meme-investing,” which stunned the markets early this year. By coordinating their efforts via social media, these retail investors drove massive rallies in cryptos like DOGE and SHIB as well as stocks like AMC Entertainment Holdings and GameStop Corp.

Shiba Inu is not a leap forward in digital asset technology as Bitcoin and Ethereum were.

It doesn’t really have a purpose. But it does have a devoted community, and that community so far has succeeded in achieving massive price increases.

Should I Buy Shiba Inu?

Investing in any cryptocurrency – even a top name like Bitcoin (BTC) or Ethereum – is risky because digital assets are fairly new, somewhat volatile, and largely unregulated. But a meme coin like Shiba Inu carries even more risk because it has no root investing case. When the enthusiasm within the Shiba Inu community wanes (which will happen sooner or later), the price will plummet.

Shiba Inu is one of those cryptocurrencies with a huge maximum supply (589.7 trillion versus Bitcoin’s cap 21 million coins) and a sub-penny price. The SHIB price as I write this is $0.00006598.

Last year it had as many as 10 zeros after the decimal point, hence the big percentage gains.

But such coins can only go up so much. Shiba Inu already has a top-10 market cap at $36.6 billion. The SHIBarmy, as they like to call themselves, talks about the coin reaching $0.50 or even $1. But that can’t happen. A price of $0.50, as reasonable as that sounds, would result in a market cap of nearly $295 trillion – triple the gross domestic product of the entire world and more than two-thirds of the world’s total net worth.

That doesn’t mean you can’t make money on a coin like this, but you have to be very careful.

My colleague Nick Black has a lot more to say about Shiba Inu, meme coins, and what investors need to watch out for:

Take care,

David Zeiler

Advisory Board Member, Alternative Wealth Daily

Buying and holding stocks for decades is no longer the way to get rich. People are making millions off of cryptocurrencies, NFTs, collectables, precious metals, and other alternative investments. If you want to have the opportunity to make generational wealth and not wait 30…40…or 50 years for it to happen…now’s your chance. You can have moneymaking advice hit your inbox each week, for free, from the team at Alternative Wealth Daily.


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