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There’s massive upside, but a few thought exercises show why a minimal investment is wise, if anything at all.
The allure of investing in the token is that it is extraordinarily inexpensive. In that respect, it garners a lot of comparisons with Dogecoin (CCC:DOGE-USD). I’ve personally never been a fan of that project. I don’t think there’s any logical argument that investors should direct large amounts of capital to a project conceived of as a joke.
But this article is about Shiba Inu, not Dogecoin. So, I’ll start off by noting that I believe Shiba is a more worthwhile investment than Dogecoin, and leave it at that.
Don’t invest much though. I say that despite the case I’ll lay out which denotes the extraordinary returns that are still possible.
Price Allure of Shiba Inu
The reason Shiba Inu holds allure in the investing world is its rock-bottom price. It costs 0000078 for a single Shiba Inu token. That’s a phenomenally low price for just about anything. It’s a number we’re not used to seeing as a unit price.
So, if we do some quick arithmetic we’ll see what it actually means in numbers we can truly grasp. Take $1 of capital and direct it toward the purchase of Shiba Inu tokens and you’ll have 128,205 units of the cryptocurrency.
At $5 and current prices, you can become the owner of 641,205 units of Shiba Inu. Double that investment, and you’ll control well over a million tokens.
While that arithmetic is interesting, what investors really want to know about is return. There too, the numbers tell an interesting story.
Big Gains, Actually
According to Coinbase (NASDAQ:COIN), Shiba Inu’s price has appreciated an astounding 5,197,928% over the last year. That, again, is a number we’re not quite used to seeing.
Let’s put that into easily digestible numbers. An investor who directed $1 of capital toward Shiba Inu a year ago would now have $51,979. That is a phenomenal and staggering thought, to be honest.
One year ago, Shiba Inu was trading at an even less comprehensible .000000000157 cents. The reason that the token can return such staggering gains is that it trades at staggeringly low prices.
That same thought exercise for $1 of investment I mentioned before is even more astounding. A dollar would have bought an investor 6.39 billion SHIB tokens a year earlier. It now buys 128,205 SHIB tokens.
Proceed With Caution
The general maxim associated with all investing holds doubly true here. Those numbers I just outlined are attractive. I could understand if they cause a reader to go out and put some capital toward SHIB.
But let’s take a more meaningful chunk of capital, say $10,000, and see what happens if we time the market poorly.
On May 9 of this year, Shiba Inu reached .00003503 cents, its all-time high price. That hypothetical $10,000, invested at that point, would have depreciated very quickly.
In the span of a few short months, it would have dropped by 77.73% in value. That means that $10,000 would now be worth $2,227. Any portfolio manager returning those kinds of numbers wouldn’t have a job for long.
And few if any are investing in Shiba Inu in any case. But the point remains that risk is there.
I hope the hypothetical exercises I’ve laid out here show that Shiba Inu is risky, but worthwhile. To some, $10,000 might represent a small chunk of capital which will mean little, if lost. To others, that number is different.
It’s difficult to even find information on the utility of Shiba Inu tokens. I didn’t even indicate anything in that regard in this article. The only case here is playing the numbers. If that’s alluring based on the math I laid out above, do so with an amount of money that won’t hurt you.
By Alex Sirois