How Much Shiba Can I Buy With 100 Dollars

Patience has paid off immensely over the long run for stock investors. Since 1980, the benchmark
S&P 500
has averaged an annual total return, including dividends, of roughly xi%.

Still, cryptocurrencies have done a
wee
fleck
better
in a much shorter time frame. Just since the March 2020 valuation lesser, the aggregate value of all digital currencies has soared more than i,400% to $ii.21 trillion. Over a 5-year stretch, the total value of digital currencies has skyrocketed almost fourteen,800,000%!

But fifty-fifty this jaw-dropping increase has been put to shame past the year-to-date performance of meme money
Shiba Inu
(SHIB
0.59%).

If you put $100 to work in Shiba Inu on Jan. 1, you’re incredibly rich today

Shiba Inu is an ERC-20 token built on the
Ethereum blockchain that effectively came out of nowhere to, at 1 point, discover its way into the x-largest digital currencies past marketplace cap.

When 2021 began, investors had the opportunity to buy this niggling-known cryptocurrency for $0.000000000073 per token, according to CoinMarketCap.com. If y’all’re wondering why the price was and so low, keep in mind that, when Shiba Inu was launched in early on August 2020, it had a circulating supply of 1 quadrillion SHIB.

But equally of Dec. xvi, these same tokens were changing hands on cryptocurrency exchanges for $0.00003305. Eating up six zeroes after the decimal point means Shiba Inu has delivered a year-to-date return of 45,273,873%!

If you were to accept invested $100 into SHIB at the stroke of midnight on Jan. one, and you lot held onto that pale throughout the unabridged year, you lot’d at present be sitting on a position valued at (drum roll) $45,273,973. That would nearly become yous into the top 0.one% of the wealthiest individuals in the U.S.

How does an asset appreciate by 45,000,000% in less than a year?

The question likely coming to mind is, “How is it possible for any asset to proceeds 45,000,000% in less than a yr?” The reply has numerous moving parts.

To brainstorm with, the cryptocurrency space is designed with an inherent buy bias. For instance, it’southward relatively easy for short-sellers (investors who want the toll of a security to fall) to bet confronting publicly listed stocks through an online brokerage. The same isn’t true within the less-regulated cryptocurrency space. Although some crypto exchanges do allow investors to brusk-sell well-known digital currencies, betting on downside in the crypto space isn’t common. This provides a natural purchase bias, especially for lesser-known coins that are riding a wave of momentum.

To build on this point, social media buzz plays a much larger role in influencing cryptocurrency valuations than it does in the stock market. Since near blockchain projects are nonetheless in the development stage, the internet rumor mill and confirmation bias play a fundamental role in pushing valuations college for digital tokens with a lot of momentum.

Don’t overlook the fear of missing out (FOMO), either. Because short-selling isn’t commonplace and social media buzz/tweets tin can be more than enough to send cryptocurrencies to the moon, SHIB investors oasis’t been the to the lowest degree bit concerned that it was up past as much as 121,000,000% on Oct. 27, which is when information technology hitting its all-time high of $0.00008841.

Other factors that have played a part in Shiba Inu’s historic rising include the launch of decentralized exchange ShibaSwap, new listings on crypto exchanges, a large money burn event (courtesy of Ethereum co-founder Vitalik Buterin), and the expectation of layer-2 blockchain Shibarium launching in 2022.

Those who don’t lock in their gains will regret information technology

Information technology’due south quite plausible we won’t see a single-year render of this magnitude ever again. But it’due south also
extremely
likely that Shiba Inu volition undergo an every bit epic reversion over the next 12-to-24 months.

Perhaps the biggest enemy for Shiba Inu and its “hodlers” (a term embraced by crypto investors to describe those intending to buy-and-hold a token) is history. Over the past v years, there accept been a small handful of payment coins that’ve rallied anywhere from 24,000% to almost 462,000% in a relatively brusque time frame (typically 10 months to 30 months). Only after these momentum-driven cryptocurrencies peaked, they each went on to lose between 93% and 99% of their value in 26 months, or less.

In terms of amass gain, the closest historical comparing I tin can find to what SHIB produced in 2021 is privacy coin
Verge, which gained close to 1,200,000% in a one-year stretch. Subsequently hitting its all-time high, Verge would go on to lose 99.6% of its value in about a year. If a nearly 1,200,000% proceeds produced a 99.6% reversal, imagine what a peak proceeds of 121,000,000% will yield.

The other glaring concern for Shiba Inu is that it offers no competitive advantages or true differentiation. Although it’s one of the buzziest cryptocurrencies on social media, hype always proves fleeting. When push comes to shove, there’s nothing about Shiba Inu coin that would coerce businesses to choose to accept information technology over a bounding main of other more than efficient or unique crypto options. Equally of Dec. 16, a meager 387 merchants worldwide were accepting SHIB as a form of payment. That’s out of more than than 500 million entrepreneurs worldwide.

Shiba Inu has already retraced 63% from its all-time high in less than two months. If hodlers don’t lock in their gains soon, they could be in for a long and painful ride lower.