It took only 2 days for Shiba Inu coin to go from a cheap altcoin to the hottest cryptocurrency in the world.
On May 8, 2021, the price of Shiba Inu coin soared by more than 251%, and the transaction volume reached 40.3 billion yuan, making it a hot search on Weibo. Shiba Inu coin surpassed even Dogecoin by market cap.
Musk “shots” Shiba Inu coins on a “rocket”
Whether it is Bitcoin, Dogecoin, or Shiba Inu coin, there is Musk behind it. With just one or two words, he is blamed for causing a bloody storm in the crypto space in March.
Hiromichi Mizuno, Tesla’s independent director and former chief investment officer of the Japanese pension fund, once said on social media: “Investors can trade Shiba Inu coins on a short-term basis, but don’t treat your Shiba Inu pet dog like this.” Musk responded immediately: “I’m looking for a Shiba Inu.”
Then, a user named “Shib Father” revealed that Musk would discuss the Shiba Inu coin on the “Saturday Night Live” saying that it would rise to $1.
Subsequently, the Shib coin (Shib) was a short-term super-yang line, rising by more than 251% in a day, and temporarily reported 0.0000183 US dollars, or about 0.0001 yuan, topping the list of major exchanges. As of May 9, 2021, the daily trading volume of Shiba Inu coin reached 40.3 billion yuan, a surge of 1297.64%, and the market value soared by 359.31%. The hot market once caused major trading platforms to suffer short-term downtime.
In mid-March 2021, Musk posted a social media saying that he would raise a Shiba Inu for his family. At that time, the price of Dogecoin did not rise, but the Shiba Inu coin exploded in value.
Will shiba inu coin be the next “bitcoin”?
Are investors really making money in the skyrocketing market?
A Shiba Inu coin investor told a reporter from the China Securities Journal: “The bull market only needs one chance to squat on one coin. The Shiba Inu coin is very profitable these days. I use the principal of 20,000 yuan as a short-term, fast forward. Hurry up. In the afternoon, I earned 7 times as much as 140,000 yuan, I was in a trance, and now I regret buying less.”
But he also said: “After all, Shiba Inu coin is not a mainstream currency such as Bitcoin. I don’t have the confidence to hold it for a long time. It’s just for fun. If it replicates the development trajectory of Dogecoin, won’t I get rich overnight?”
Although the Shiba Inu coin has risen sharply in this round, the OKEx Research Institute reminds investors to enter the market cautiously: “This round of Shiba Inu Coin’s surge is quite similar to the Dogecoin’s rise, which can be regarded as a fan economic effect. If the chips are too concentrated, the risk of market manipulation is prone to occur, especially for the Shiba Inu coin, which has little practical application value. The current price surge is more due to marketing hype, and the possibility of selling and leaving the market is not ruled out until a later period. So it’s more risky.”
Industry insiders have highlighted: “The Shiba Inu coin inherits the style of the Dogecoin and will rise after the order is called, but the range of rise and fall is particularly large, which will inevitably make the market become restless. Investors are bound to be far smaller than those who lose due to ups and downs in the market.”
You might be considering adding Bitcoin and Shiba to your portfolio. But which one is more worth investing in?
SHIB and BTC, two of the best and most famous cryptocurrencies, have been the mainstays of many investors’ portfolios. Even lay investors know them. This article will not repeat their background.
This article will analyze the transaction and speed of SHIB and BTC, as well as their supply and demand.
Transactions and speed
While Bitcoin still largely holds the cryptocurrency top spot, many critics point out that the blockchain’s lack of scalability will ultimately be its downfall. While this may not be a major concern for those investing in Bitcoin in 2022, it could potentially hinder BTC’s growth.
Bitcoin’s reliance on the proof-of-work consensus mechanism and the SHA-256 algorithm means it takes about ten minutes to create a new block. From this perspective, Ethereum (the network on which Shiba is built) can add a block in as little as 15 seconds.
Its lack of speed means Bitcoin is limited to about 5 transactions per second.
In fact, Bitcoin is not fast enough to support everyday retail transactions – per its original remit. But there are also growing environmental concerns. Bitcoin miners around the world use roughly the same amount of electricity as a small country. Given that most countries are moving towards a carbon-neutral future, this could seriously hinder Bitcoin’s long-term viability.
The original SHIB token was built on the Ethereum blockchain and thus leveraged its architecture when creating blocks and processing transactions. While Ethereum may face congestion issues, the much-anticipated 2.0 upgrade promises to put an end to those issues.
As a payment method, Shiba Inu pays much faster than Bitcoin and compares favorably with its main competitor, Dogecoin. When the Ethereum upgrade is finally delivered, there will be no competition in terms of transaction speed – Bitcoin simply can’t keep up.
Supply and Demand
Regardless of the technical potential of cryptocurrencies, the same investment rules still apply – supply and demand are one of the biggest factors affecting prices. Bitcoin is a deflationary cryptocurrency, which means that it actually becomes more scarce over time.
This mechanism is enacted by halving the reward given to Bitcoin miners. Miners are rewarded in BTC every time they complete a new block. During Bitcoin’s existence, the amount they earn is periodically halved. Combined with a total supply cap of 21 million coins, this means that BTC automatically creates scarcity.
When you also consider that many people who choose to invest in Bitcoin will hold their assets for the long term, you may reach a point where there is very little Bitcoin in free circulation. In theory, this could have a positive impact on the price.
Shiba Inu is served in a somewhat unorthodox way. The developers initially outlined a cap of 1 trillion. However, a large supply was sent to ethereum co-founder Vitalik Buterin – an action the Shiba website describes as a “burning” act.
For now, the circulating supply of SHIB is said to be 500 trillion. It should be noted that Shiba is designed to provide ample supply, not to be a deflationary token like Bitcoin. The idea here is that there will always be enough SHIB in circulation to support DeFi activities and serve as a means of exchange for value.
Here’s a look at the historical prices of bitcoin and Shiba Inu coins.
Whether you’re considering investing in Shiba or Bitcoin, an important consideration is the price action that precedes each token. By performing a retrospective analysis, you can understand to some extent how each token responds to certain economic factors.
Over the years, Bitcoin has become notorious for its incredible price run. BTC began trading in pennies back in 2009, and by 2013 had reached an impressive $1,242 per token — a figure still higher than the all-time high for most cryptocurrencies today.
However, those new to the cryptocurrency market should be aware that bitcoin has had its fair share of downturns and has not always maintained its value. For example, after hitting an impressive $19,783 in 2018, BTC plummeted all the way to $3,430 by the end of the year.
Bitcoin quickly recovered to an impressive price of less than $20,000, however by 2021, things had really taken off. The price of bitcoin BTC has soared several times since January when it hit an impressive $40,000. In April, BTC rose again, this time to $64,804. The third bull market hit a record high of $68,530 in November. You can go to Gate.io to check bitcoin price live.
Shiba inu coin hasn’t been around long, so there’s not a lot of price history to go back to. The token was launched at less than $0.00000001 — a very small number designed to allow the Shiba Inu project to flourish and grow significantly in its early days while remaining a low-cost way to exchange value.
Shiba Inu’s price movements were really nothing to write about in the first few months – it barely moved and never held anything that could be considered of significant value.
However, the token benefited from a market rally that took place in the first weeks of 2021.
In April, Shiba Inu’s value rose from $0.0000001 to $0.0000036 — still a small number, but an increase of several thousand percent in a short period of time. The hype around DOGE seemed to benefit SHIB, hitting a high of $0.0000379 in May — a figure that again blew the fact that SHIB was actually making substantial gains. SHIB hit a record high of $0.000088 by the end of October.
What is the future of bitcoin and Shiba Inu coins?
BTC
It’s hard to find a bitcoin price forecast that doesn’t point to medium – to long-term growth. This is definitely a good thing — raw cryptocurrencies are often used as an indicator for the overall health of the market, so if things look bad for BTC, there’s a good chance other tokens will be affected as well.
Judging by DigitalCoinPrice, it looks like bitcoin could have a very positive future. The platform expects BTC to reach $94,006.13 by the end of 2022 and continue to soar in early 2023. BTC is expected to reach $100,695.95 by the end of 2023 and continue to grow well through 2024.
Other predictions such as WalletInvestor is bullish on bitcoin over the next few years. According to its technical analysis, BTC could reach a potential high of $78,000 by the end of 2022 and then surge to $101,997 by December 2023.
Finally, economic forecasters have one of the most optimistic bitcoin price forecasts you’ve seen. BTC reached the $100,000 mark by the end of April 2022 and $138,000 by the end of 2023.
SHIB
It was difficult for the platform to know how to make Shiba Inu, as the project started as a self-proclaimed “Doge Killer” but has since evolved into a full DeFi project that provides DEX and liquidity pool access.
This approach seems to have resonated with economic forecasters, which are generally known for their more conservative price forecasts. SHIB grew to about 150% by the end of 2022, reaching a trading price of $0.00006401 by December. Afterwards, the platform expects Shiba to continue to grow into 2023 and beyond.
DigitalCoinPrice is also bullish on SHIB. Its token climbed through the rest of 2022 and early 2023, eventually hitting $0.0000780523 in December of that year.
What did experts think about Shiba and Bitcoin?
Expert opinions can provide useful insights into how big businesses feel about a particular cryptocurrency. Of course, there is no shortage of opinions on Bitcoin. One of the token’s most prominent proponents is financier Mike Novogratz.
He said that Bitcoin is now rebounding and that large institutions are now buying Bitcoin. He also believes that BTC will keep its value going forward. “Each bank is working on their own crypto project, how they can bring bitcoin to their wealthy customers,” Novogratz said. “I think a lot of customers who didn’t buy it for the first time would see this as an opportunity to buy and get involved.”
When it comes to SHIB, some crypto experts are cautiously optimistic about the chances of meme coins. “SHIB coin is a meme coin and embraces that,” said Ben Casin, head of research and strategy at cryptocurrency exchange AAX.
Speaking of Reddit’s importance to the growing meme coin trend, he added: “The meme coin movement rejects form and protocol… So Dogecoin started out as a joke and the Shiba white paper is called woofpaper.”
Casein concludes: “The hype around meme coins like Shiba… is not a financial phenomenon, it is a social phenomenon.”
Sam Bankman-Fried, CEO of crypto derivatives exchange FTX, also had his say about Shiba: “I’d be surprised if SHIB surpasses DOGE, but anything can happen!”.
Shiba and Bitcoin: Which One Should Be Watching?
On the face of it, Shiba Inu’s growth may outpace bitcoin’s, but the latter is much better known and still dominates the cryptocurrency market. So at that level, there’s still no clear reason why you can’t invest in bitcoin.
Bitcoin has gone through a number of price swings over the years, starting trading in pennies in 2009 and reaching $1,242 per coin in 2013. That number is still the highest of any cryptocurrency.
Shiba Inu recently turned the market upside down with a surprise rate hike this weekend. One never knows how long it will last. Therefore, it is best to check both the latest trends and previous investments before you make investment decisions.
How to buy shiba inu coin and BTC
If you want to buy Bitcoin or Shiba Inu, then the first thing you need to do is find a reputable exchange that lists each token. There are hundreds of suppliers in the market, but choosing a trusted brand is crucial. That’s why we recommend Gate.io — ranked by Forbes as one of the Top 10 exchanges in 2021.
Opening an account with Gate. IO is quick and easy, and as long as you can verify your details, you can enter the market in minutes. The company’s trading platform is intuitive and has received positive reviews from experienced traders and first-time entrants to the market.
Gate.io is your gateway to cryptocurrency!
Photo by Ferhat Deniz Fors on Unsplash
