Shiba Inu Coin, otherwise known as SHIB, is one of a few dog-themed meme cryptocurrencies that are currently circulating in the space. It is an Ethereum-based ERC-20 token also created by a mysteriously named individual.
The token is currently the 9th largest digital coin in the world, followed closely by another meme-inspired crypto, the Elon Musk-backed Dogecoin (DOGE).
None
— Elon Musk (@elonmusk) October 24, 2021
Both DOGE and SHIB are based on the once-super popular internet meme of a Shiba dog, a breed of dogs from Japan, often used as a reaction image in chat boards. They are the most traded of the meme currencies currently available, due in no small part to Elon Musk’s devotion to DOGE, which has spurred a viral community in SHIB – whose traders are calling the “dogecoin” killer.
On Wednesday SHIB hit an all-time high of $0.0000594, and despite its low price, experts suggest not to invest in it, and tokens like it which are known as “altcoins.”
Altcoin basically covers everything that isn’t bitcoin and are usually understood to be even more volatile than the first and largest cryptocurrency. Meme currencies like SHIB and DOGE also present investment challenges as they will never be able to hit a $1 valuation.
Don Guo, CEO of Broctagon Fintech Group, said in a statement seen by Forbes earlier this month that it is “impossible” for SHIB to reach $1 because there “simply isn’t enough money” in the world. According to Guo, it would take a market value of 1 quadrillion for the meme coin to hit $1.
Which begs the question, why are meme cryptocurrencies so popular?
According to stock advisor site, The Motley Fool, investing in meme crypto like SHIB and DOGE is more akin to gambling than actual investing. If you happen to buy and sell at precisely the right time, you could make some profit.
However, it’s far more likely that you’ll “lose all or most of the money you invest.”
The true reason for their popularity lies simply in their memetic and “funny” nature. It is a meme to buy meme currencies and crypto enthusiasts will talk to each other and joke about “hodling” their Dogecoin or Shiba Inu Coin in online spaces.
These currencies represent no real-world purpose, they were created to “make a quick buck,” gain popularity through influential celebrities and become as much a meme as the images that inspired them.
When it comes to actual investing, most sources of any merit advise would-be investors to stick to stocks so that they don’t lose their money in the highly volatile world of crypto trading.
By Luis Monzon
Follow Luis Monzon on Twitter
Follow IT News Africa on Twitter
