3 Threats Behind Shiba Inu Coins Here's an Explanation
Rancakmedia.com – The Shiba Inu coin jumped to become the best-selling cryptocurrency in 12th place. His fame grew due to billionaire 'Meme Lord' Elon Musk sponsoring the dog logo coin that this meme was derived from.
However, there are elements to consider when investing in or trading Shiba Inu. It is conceivable that these coins may lose their value in the future. The following summarizes this article about The Motley Fool's Shiba Inu Coin Threat.
1. Transactions in the real world are still lacking
Some currencies on the crypto market still suspect a lack of real world value. Before protesting 'but Dogecoin is going up!', let's dig deeper.
Dogecoin is accepted by more than 1,700 companies around the world, including film company AMC Entertainment. But it took Dogecoin eight years to reach this level of popularity. Compared to the Shiba Inu, Dogecoin seems like a widely recognized digital token.
After more than a year since its launch, online business directory Cryptwerk observed that only 88 mostly unknown companies accept SHIB as means of payment.
2. The average is only held for less than a week
Based on statistics from Coinbase, the average Shiba Inu coin holder only keeps their coins for approximately 6 days. The percentage growth in the value of the Shiba Inu has jumped by 5,100,000 percent since August 1, 2020 but on average only holding this coin for less than a week is a warning to be careful and wise in investing.
3. Historically, short-term gains have not lasted
For example, cryptocurrency mining business Bit Digital (NASDAQ:BTBT) was the best performing stock of 2020, posting a gain of around 3,700 percent. Bit Digital is specifically focused on mining Bitcoin (BTC), the largest digital currency by market size. But in 2021, Bit Digital shares are down 51 percent, which is actually down from around 81 percent in mid-July.
Actually, there is nothing wrong with investing in cryptocurrencies. However, given the very high volatility, which can rise and fall for hours or even minutes, extra calculations and studies must be done at the right moment to invest. The key is, don't just go along with it.
Conclusion Regarding the Threats Behind Shiba Inu Coins:
The Shiba Inu coin jumped to become the best-selling cryptocurrency at 12th place. His fame grew due to billionaire 'Meme Lord' Elon Musk sponsoring the dog logo coin that this meme was derived from. Only 88 companies, mostly unknown, accept SHIB as a means of payment. On average they were only jailed for less than a week.
