Digital currencies began in 2008 with the invention of bitcoin, a currency that could be created, traded and tracked over the internet.
Since then, cryptocurrencies have multiplied. Some were designed to beat bitcoin in ease of use, cost, and speed. Others serve as tokens for new versions of the blockchain, a secure online tracking and accounting method that makes cryptocurrency possible.
Other new crypto coins have been created just for fun. Shiba inu is that kind of piece.
Furry Finance: How Shiba Inu Was Created
Named after an adorable Japanese dog, the shiba inu cryptocurrency originated as a mockery of dogecoin, which was designed as an imitation of bitcoin. When entrepreneur Elon Musk used Twitter to promote dogecoin, its value skyrocketed.
Then an anonymous individual or group by the name of Ryoshi arrived in August 2020 with Shiba Inu, aka the “dogecoin killer”.
Both dogecoin and shiba inu are “meme coins” designed to represent trends or hot ideas more than their usefulness. Shiba inu followed dogecoin into the limelight at the end of 2021, when Musk tweeted some pictures of Floki, his real shiba inu. With nearly 70 million followers, Musk’s tweets made big waves in the financial and cryptocurrency markets.
Shiba Inu starts to spread like wildfire
Cryptocurrency is measured by total market value and price. These metrics can swing wildly from day to day, depending on the fleeting enthusiasm of traders. Nothing backs cryptocurrency except its potential value as a store of value or medium of exchange.
Since such value depends on marketing and technical innovation, and new digital currency is constantly being created, amateur investors are taking significant risks.
A happy new year 2021
The numbers have steadily increased for the shiba inu through 2021. The metrics peaked in October of the same year when the price of a shiba inu coin reached $0.0000845, a 1000% increase over the course of the previous 25 days. For the year, the coin jumped an incredible 43.8 million percent.
For a brief period, shiba inu had a higher market valuation than dogecoin and reached the top 10 of all cryptocurrencies by total market capitalization.
New use cases
Traders have successfully requested Robinhood, a popular mobile trading platform, to make the coin available for buyers and sellers, and it is also available on Kraken.
Additionally, a series of 10,000 Shiboshis – graphic designs depicting the now famous breed – have hit the market. These non-fungible tokens further expand the popularity of the coin. But to be successful for investors, a coin must be more than a novelty.
Use cases for the SHIB coin are slowly emerging. For example, Shopping.io supports it, so holders can, in a somewhat roundabout way, use the coin to make purchases on Amazon, eBay, and Walmart. Newegg started accepting the shiba inu before the holidays last year. Additionally, SHIB is now the native token of the new Shiba metaverse, where users can use the coins to mint lands.
This metaverse could be expanding. Shiba inu has teamed up with The Third Floor, a visualization company that works with Marvel, to create environments and landmarks in the Shiba metaverse, FXStreet reported. Time will tell if the shiba inu projects — especially his metaverse — will come to fruition.
Go to dogs
Shiba inu fell from highs reached in October 2021 to $0.00001429 on August 18, a drop of nearly 84%. If the hype around the coin wears off, the coin may never return to those levels. The general decline in the cryptocurrency market, including major coins bitcoin and ethereum, is also cooling the price of SHIB.
Does the shiba inu have a future? Several industry websites predicting cryptocurrency prices are optimistic.
Coin Price Forecast estimates that SHIB could increase by 43% by the end of 2022. Coin Gape predicted a target of $0.00008368 for this year, an increase of 486% from its current price. Wallet Investor’s average prediction is that SHIB will rise just over 4% from its current price of $0.0000149 by the end of the year. Gov Capital predicts it will hit $0.00006139 within a year, an increase of 309%.
Short meaningful use cases, shiba inu’s primary value is in its level of hype. That leaves analysts scrambling to predict what investor sentiment might be down the road – a notoriously difficult task.
Trader, beware: should you invest?
These predictions call for a major comeback this year and over the next few years. On paper, this type of return certainly exceeds anything that can be offered by stocks, bonds or just about any other type of investment.
But cryptocurrency, and currency itself in particular, is subject to financially destructive trends for unwary investors. Even aside from their highly speculative nature, fees and costs are charged when trading digital currencies, and many investors have been left with nothing.
It’s fun to predict the markets and fascinating to consider the possibilities of digital currency, especially one so inexpensive that you can buy nearly half a million coins for $5. But the wise decision would be to research the shiba inu thoroughly before throwing money at it and never invest what you can’t afford to lose.
Good to know
There are several shiba inu alternatives that have yet to find widespread hype and may reward patient investors. Samoyedcoin is another dog meme token, designed for use on the Solana payment network. Monacoin, named after a famous cat character in Japan, has gained limited use cases since its invention in 2014.
Daria Uhlig and John Csiszar contributed reporting for this article.
Information is accurate as of August 18, 2022.
This article originally appeared on GOBankingRates.com: Shiba Inu Coin Price Prediction August 2022
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.