Ask the Doctor Boosts Crypto Utility With Jump Onto Shiba Inu Bandwagon

Two of the pandemic’s biggest phenomena, telemedicine and cryptocurrency, again came together on Dec. 1 when Canadian online medical services provider Ask the Doctor tweeted that it had added $1.5 million in Shiba Inu (CCC:SHIB-USD) to its balance sheet in preparation for accepting the cryptocurrency as payment for services rendered.

The back of a Shiba Inu puppy in a camping tent
Source: Shutterstock

The move came after the company asked its 27,000 Twitter followers whether they preferred Shiba Inu or Dogecoin (CCC:DOGE-USD) to be added to its balance sheet. Overwhelmingly, its followers voted in favor of SHIB-USD.

Ask the Doctor has accepted Bitcoin (CCC:BTC-USD) since 2016, so it’s fair to say it’s a big proponent of cryptocurrencies. In addition, it has already begun to accept DOGE-USD for payments for services such as prescriptions and dental services.

Ask the Doctor founder and CEO Prakash Chand is confident about DOGE as a form of payment, confidence that is evident in a statement made in November:

“I’m convinced doge will have the highest utility as a global currency because of their speed to settle a transaction and low fees per transaction,” Gadgets 360 reported. “[And it could have a] Possible larger market cap than Bitcoin as the community grows.”

Ask the Doctor is the latest high-profile business to add more cryptocurrencies to both its balance sheet and as a form of payment.

What does this mean for holders of Shiba Inu? I consider the possibilities.

Use Boosts Shiba Inu Value

I recently discussed the ramifications of AMC Entertainment (NYSE:AMC) accepting Shiba Inu as a form of payment at its theaters across the country. I concluded that it was a smart business decision by CEO Adam Aron.

“From every angle, it makes total sense for AMC to accept cryptos, including Shiba Inu. As for holders of Shiba Inu, I don’t see a reason you would give up potential moneymakers to see a movie. It makes little sense in the current environment,” I wrote on Nov. 11.

You can substitute AMC for Ask the Doctor or any other business that generates considerable revenue. Providing customers with convenient forms of payment is an excellent way to engender loyalty while also ensuring you get paid promptly.

It’s a win/win. And if the cryptocurrencies on your balance sheet appreciate, you’re winning a third way. It’s not much different than a large company investing its vast hoards of cash in equity securities as a way to prevent the erosion in the value of its cash on the balance sheet. The stocks go up in value. Shareholders win. Shiba Inu is no different.

As more companies add Shiba Inu as a form of payment and to their balance sheets, I don’t think there’s any question the process could push the value of SHIB-USD higher, which is why I don’t understand someone using Shiba Inu as a form of payment.

Converting SHIB-INU to Greenbacks

In my opinion, the more sensible move if you’re holding Shiba Inu as an investment is to convert some of your holdings to U.S. dollars on a scheduled basis, such as monthly, quarterly or twice a year.

So, it might work as follows:

  • You start with $50,000 in SHIB-USD as of Dec. 3. That’s approximately 1.18 billion tokens as I write this based on a price of $0.00004242.
  • On Jan. 3, you noticed that SHIB had appreciated 10% over the past 30 days to $0.00004666 per token. So you sell 107.2 million tokens for $5,000, but you’ve still got $50,000 in tokens.
  • Now, if the value drops over the next month to Feb. 3, you could decide to pass on selling any, or you could sell another $5,000, opting to sell this amount each month regardless of the direction of Shiba Inu’s price that month. That’s up to you.

The critical thing to remember is that a fast-appreciating asset is not something you want to give up for a movie.

Sure, you could argue that the 10% appreciation I mentioned above means you have to use 10% fewer tokens to pay for your movie, but once they’re gone, they’re gone. So at least with the above scenario, you have the U.S. greenbacks should you want to buy some more SHIB-USD.

In the case of Ask the Doctor or AMC, you’re giving away your appreciation potential and giving it to a corporation instead. That doesn’t seem like a very sensible use of your hard-earned capital.

Business View vs Investor View

When Ask the Doctor’s CEO says DOGE-USD will have the highest utility as a global currency, he’s looking at it from the point of view of his business. He’s not looking at it from an investor’s standpoint.

Look, I’m sure there will come a day when individuals hold nothing but cryptocurrencies with no U.S. dollars or other fiat currencies. When that day comes, I think it makes sense to use one crypto for payments and one or more for investment.

That day hasn’t come. Until it does, I’d cheer for further acceptance of Shiba Inu, but use U.S. dollars for most, if not all, of your daily purchases.

On the date of publication, Will Ashworth 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 Publishing Guidelines.

Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.

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