If you invested $ 100 in the Shiba Inu, this is how much you would have now

Shiba inu (CRYPTO: SHIB) wins the award for best investment vehicle of 2021, hands down. Its breathtaking gains over the past year may have propelled some investors to millionaire status, although its real-world use remains questionable. If you had only invested $ 100, depending on when you might be ready for life. Let’s dive into it.

As speculative as it sounds

Investors who bought Shiba Inu in early 2021 probably didn’t see what was to come. I don’t think anyone is anticipating a 53,241,775% year-over-year increase in their wildest dreams. If you had invested $ 100 in Shiba Inu exactly one year ago, you would have over $ 53 million. And the price is down from its October highs; if you had sold by then you would be even richer.

Image source: Getty Images.

At the start of 2021, there were over 4,500 tokens in the crypto market. That rose to nearly 8,000 in November and a total market cap of almost $ 2,000 billion for the top 10 traded coins alone. And it’s not just the best tokens that have huge market caps. Although none come close to BitcoinIt’s nearly $ 1 trillion, even those at the bottom of the list are seeing significant volume. To hit, No. 400 in terms of crypto market cap, has a market cap of over $ 117 million and over $ 16 million in transactions over a 24-hour period.

Theoretically, any of these coins (or more) can see astronomical gains. Many of them did, although not quite on Shiba Inu’s level. But unless you see real use in your chosen crypto investment, it might just be a guessing game as to which of the thousands will be the next Shiba Inu. Strike, for example, has lost 44% in the past year. Streamer, No.455 in crypto market cap (yes, I picked them at random), has a market cap of $ 91 million and has gained 216% over the past year.

If you want to try your hand at getting fabulously rich by investing in cryptocurrency, you may need to diversify your holdings by exposing yourself to new opportunities while limiting the risk of any one falling hard.

Just a roll of the dice?

The thing about Shiba Inu is that there is nothing particularly special about it. Bitcoin has the first-mover advantage, and at this point, the market capitalization advantage and its value as a storage unit and native Internet coin give it considerable weight. Ethereum has incredible uses of blockchain, and having been around longer than similar tokens, it powers dozens of blockchain and metaverse applications.

Shiba Inu is based on the Ethereum blockchain, like many other tokens. Its usefulness lies in its compatibility with Ethereum and Ethereum-based projects. There is a quadrillion Shiba Inu coins, so this is far from rare (although half have been “burned” out of circulation). There is a dedicated trading site called ShibaSwap, although investors can buy it on most cryptocurrency exchanges. Fans have created a community for further development, and so far it supports an art incubator and the rescue of the Shiba Inu dog breed.

It’s not noticeably different from other coins, and the price has skyrocketed mainly due to its meme status (with help from You’re here CEO Elon Musk, who bought a Shiba Inu breed dog.) The price of the Shiba Inu coin has recently fallen, losing 32% over the past month.

Should you invest in the Shiba Inu coin now?

Remember, you can’t time the market. If you had invested your $ 100 in Shiba Inu anytime before the October high, you would have gotten more than you would have put in if you had held and sold at the high. But there have been a few ups and downs along the way, and you might have sold too early. Finally, if you had joined the Shiba Inu craze and invested $ 100 in the past two months, you probably lost some. So, while it is quite astonishing to see such a disproportionate annual gain, in practice there can be no regrets.

The likelihood that someone invested $ 100 in Shiba Inu alone and got rich because of it, while ignoring the thousands of other cryptocurrencies that likely lost money for investors, is next to zero. The moral of the story is not to blame yourself for missing the opportunity, or even imagining that another is coming. The lesson is to invest responsibly, which means placing your money in instruments that offer real value, and perhaps allocating a small amount to higher risk or alternative investments that offer the potential for colossal gains.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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