Buying Shiba Inu Now Is Like Expecting a Lottery Ticket to Hit Twice

I think it’s fair to call Shiba Inu (CCC:SHIB-USD) an unexpected success story. Whether you expected it to emerge as it recently has or not, it’s inarguably interesting. 

A close-up shot of an angry Shiba Inu dog growling with a black background.
Source: Shutterstock

I’m still scratching my head as to what its recent run means.

Further, I have very little I can say about what its ultimate utility will be, whether it will materialize, or what it really might resemble at all. 

But what I do know is that it probably doesn’t matter right now. Its appeal is in the fact that demand is there, although again, what catalyzed the demand remains difficult to pin down.

Anyway, given that Shiba Inu has ascended to become the #16 ranked cryptocurrency by market capitalization we need to pay attention. 

There’s money to be made, frankly, and that’s what matters. The question is, how much?

Gains Ahead?

The allure of Shiba Inu is clearly in the monstrous gains that have materialized seemingly out of thin air. Over the last year, SHIB is up a mind-boggling 26,918,840%. 

Honestly, even if Shiba Inu is a massive Ponzi scheme, it really doesn’t matter. Sure, it would matter if consumers were being deceived, but that isn’t what I mean. 

What I mean is that those 26,918,840% YTD gains equate to unbelievable material gains. Yes, we are looking at it in hindsight, but if you know someone who placed $1 in SHIB in early 2021 then you also know someone who turned $1 into $270k. 

You and I can both look at Shiba Inu and say that it’s garbage, they’ve created nothing, they likely never will. But has there honestly ever been any asset that can return that much? I can’t think of anything, ever.

So until someone can definitively prove that it’s worthless, I can see the mania continuing. I don’t have any particular insight into Shiba Inu but it remains one of the most interesting phenomena I’ve ever seen. 

What’s even more interesting are the stories of people who actually held SHIB before it popped earlier this year. 

They Do Exist

I mentioned that $1 invested in Shiba Inu early in 2021 would have become $270k. The problem is, no one was paying attention to it then, and even those who were looked silly at best. 

But according to this article by Benzinga there is documented success of a person who turned $17 into $5.8 million using SHIB. That’s a rate of $341,176 of return for each $1 invested.

That lucky lottery winner bought his SHIB ticket in October of 2020, held it for 197 days, and then cashed it out for nearly $6 million. 

The sobering news is that it doesn’t look like that’s going to happen soon. Remember, the price would have to increase by a factor of 270,000. 

The more likely scenario is in the ballpark of an increase by a factor of 1.14, i.e.114% return. That’s if you believe CoinPriceForecast and Gov Capital which both suggest it could rise to $.000059 by the end of this year and next year, respectively. 

Then again, it’s worth understanding what another 26,918,840% increase would mean. 

How Much More Is Possible?

If SHIB were to grow again as it has in the past year that would mean that it would multiply in value by a factor of 270,000. Therefore, it would be worth $7.83. In other words, invest $1 now, and if SHIB hits $7.83 you’d then have $270k. 

Sounds theoretically possible given that there is a precedent, right? If we understand what that would mean for the market capitalization it becomes easier to understand. 

Shiba Inu now carries a market cap of $10.8 billion. At $7.83 it would then have a market cap of  $2,916,000,000,000,000. 

So it’s simply not possible. There’s $40 trillion currently in circulation, which is written out as 40,000,000,000,000. 

Therefore, it seems like the best thing to do at this point is look for the next Shiba Inu rather than hoping for Shiba Inu to hit twice.

InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with volume less than $100,000 each day. That’s because these “penny cryptos” are frequently the playground for scam artists and market manipulators. When we do publish commentary on a low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

 Read More: How to Avoid Popular Cryptocurrency Scams

On the date of publication, Alex Sirois 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.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.


Article printed from InvestorPlace Media, https://investorplace.com/2021/10/buying-shiba-inu-now-is-like-expecting-a-lottery-ticket-to-hit-twice/.

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