Usually, we don't want to make any kind of price predictions here at Crypto Loves H2O, but so many people having been asking lately:
Will Shib hit a penny?
That's a good question that we can answer super easily. That answer is:
Absolutely!...
Not!
Shiba Inu Coin will never, ever, ever EVER hit a penny, or probably ever even come close.
Sorry to destroy all of your dreams.
We aren't hating on Shiba either. We will explain exactly why Shib will never hit a penny in just a bit.
Before you go selling your bags of Shiba, remember that just because Shiba will never get to .01$ doesn't mean that it's completely not worth HODLing.
Why Shiba Will Never Hit a Penny
Shiba Inu Coin was created as a meme of a meme. Literally. Shiba saw the crazy, lucky success of
Dogecoin, which was created as a meme of Bitcoin, and tried to run with it. And for a while they were pretty successful.
Shiba Inu started at $0.000000000056. Yeah, that's a ton of zeros. At its peak, in November 2021, Shiba killed a bunch of their zeroes and rose all the way to $0.000089. This was up over 8.8 million percent! That means 1$ into Shib at the very beginning would be worth about $1.6 million! Don't you wish you could rewind time?
At this point, everyone on Twitter was like "Yooooooo!!!! We're going to hit $0.01 any minute now! We're all getting private planes!!!" Little do they know.
Sadly, here is where it all comes crashing down.
Since November 2021, Shiba has seen decrease after decrease of its price, but it was never going to hit one penny anyway. Here's why:
Just looking at the market cap of Shiba would be enough to prove that Shiba won't get to a penny.
What is Market Cap?
Market cap is the value of money that's in a project. It's calculated by multiplying the amount of coins by the price of the coin.
Right now in March 2022, Shiba Inu has a market cap of 12.6 billion dollars, which makes it the 15th most popular cryptocurrency by market cap.
Let's take a look at some of the math of Shiba.
Shiba Inu has a massive supply of coins. There are 549,100,000,000,000 (549.1 trillion) $SHIB. So you can already see a problem here.
Now we have to multiply the number of coins (549.1 trillion) by the current price ($0.000023), which results in $12,627,000.
Now let’s say we want the price of Shiba to be one penny. 549.1 trillion multiplied by $0.01 is $5,491,000,000,000. That’s over 5 trillion dollars!
For Shiba to have been worth one penny it would have had a market cap of 5.491 trillion dollars! That's 5 times Bitcoin's peak market cap. It's 5 times more than Tesla and 3 times more than Apple. That is crazy!
The amount of capital that would need to be raised to get Shiba to a penny is insane. It would most likely need to involve world governments buying and trading in Shiba, which is highly unlikely.
What does the future of Shiba look like?
But just because Shiba will never hit a penny doesn’t mean there aren’t some things that Shiba has planned that might make it a decent investment.
Shiba Inu is actually being used as a digital currency. Not just being traded on exchanges and sent to friends, but an actual currency accepted by businesses. So far, about 40,000 businesses accept Shiba as a payment method. The biggest one is AMC theaters. Imagine paying over a million Shib for tickets and popcorn.
ShibaSwap is another good thing about Shiba. This is a decentralized exchange, or DEX, that allows you to exchange one cryptocurrency for another right from your blockchain wallet without having to register for an account. The crypto that you can swap are all built on the Ethereum chain.
ShibaSwap also lets you stake and vote on where the project is heading with its own token called Bone. Just by holding crypto on ShibaSwap you are able to earn rewards on your staked tokens. Free crypto!
Using ShibaSwap you can trade NFTs called Shiboshis. These are pixelated pictures of dogs and there are 10,000 of them. They each have traits and personalities, so I guess that makes them cool and unique!
Summarize
Shiba Inu will never ever hit a penny. There are too many coins in circulation for that to happen. The market cap for that to happen would be almost 5 and a half trillion dollars, which would require massive investment into Shiba by big players like businesses and governments.
That doesn’t mean Shiba is a dead in the water investment. They have plenty of promising projects in the works including ShibaSwap, NFTs, and more and more businesses accepting the token as a payment method.
So Shiba will never hit a penny at this rate, however i, in the future,
Shiba started to burn their supply, it could maybe reach a penny.
