In prior articles about Shiba Inu (CCC:SHIB-USD), the ultra-speculative cryptocurrency that has taken the world — or at least the digital asset community — by storm, I initially started my coverage questioning the viability of SHIB-USD. Surely people can see that just because something is decentralized doesn’t necessarily mean that it’s a worthwhile investment. Later, I realized that we might need to reexamine that concept.
Talk all the smack you want about Shiba Inu — and I’ve done my fair share, believe me — it has delivered ridiculous profitability for those who were willing to bet on the madness of crowds. From the beginning of April to the price at time of writing (the wee hours of Sept. 26, just prior to the Russian Grand Prix), SHIB-USD has returned stakeholders around 140 times their money.
Today, the airwaves are filled with gurus and hucksters talking about 10X-ing this and 10X-ing that. With Shiba Inu, this is a rare case where the original hyperbole was not only justified but extremely conservative. Therefore, we can all appreciate to some extent why speculators are eager to see where SHIB goes next.
With a price tag fractions of a fraction (of a fraction) of a penny, the law of microscopically small numbers can see Shiba Inu print some ridiculously massive gains. At the same time, it can just as easy get flushed down the toilet. Which one will it be?
I’m not going to be able to provide much certainty on the topic. However, as I’ve explained before, if you’re going to gamble on Shiba Inu, it’s best to buy on a Friday since the weekends provide the biggest catalyst for the token, which contrasts with other cryptos, which tend to do poorly on Saturdays and Sundays.
But is that enough to be comfortable with a long-term investment?
Shiba Inu and the California Grizzly Tragedy
I hate it when people answer an inquiry with a largely irrelevant philosophical musing, so I’m not about to gaslight you with such. Instead, I’ll answer the above question in the negative and explain why.
Although the California grizzly adorns the Golden State’s flag, arguably few people know that the region’s settlers hunted this bear into extinction. Due to the gold rush and the threat California’s brown bears posed to humans and especially their cattle, the state’s pioneers decided in their “wisdom” to exterminate them.
The problem is that extermination of a native species imposes ecological consequences as it disrupts a particular system’s natural order. Not too many people are aware that bears play an important role in our environment. For instance, bears’ consumption activities and waste products contribute greatly to enriching the surrounding soil. That enrichment leads to tree growth and other forest cover vegetation.
Maybe, just maybe, if early Californians didn’t exterminate the California grizzly, we wouldn’t have to spend billions of dollars for reforesting projects.
Now, you might be wondering, what does this have to do with Shiba Inu? Plenty, actually. You see, without a robust means to short cryptos (especially speculative tokens like SHIB), this dynamic allows bulls to run wild. However, the irony is that a free-for-all for bulls is detrimental for long-side investors.
Essentially, without much influence from short traders, investment markets of any stripe tend to move in extremes. On the other hand, a sizable community of bearish traders will be incentivized to investigate overvalued assets, applying downward pressure of such and thereby mitigating massive returns for assets that simply don’t deserve them.
As in nature, everything has a purpose. Real bears kill and forage, but their activities contribute to ecological health. Investment bears perform the same action and for the overall benefit of the market.
Get Ready for Wildness
I’m not a salmon, so I can’t speak from personal experience. But I can’t imagine it’s a pleasant experience to end up in the hungry mouth of a grizzly bear. Naturally, most of us have an aversion to this idea and therefore, we sympathize with long-side investors and demonize the short traders.
But as we’re likely seeing with Shiba Inu, this hatred for the shorts is irrational. In part, by allowing SHIB-USD to run free largely uncontested, you never know where this token is headed. It’s purely driven by collective human emotions — nothing more, nothing less.
I think it’s worth reminding ourselves that man is the most dangerous animal of all.
But if you’re going to gamble on Shiba Inu anyways, just know that the relative absence of bears doesn’t make SHIB (or any other bear-less crypto) safer. Over the long run, it could actually make it much more dangerous.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.