Summary
Shiba Inu Coin skyrocketed when Coinbase added her to its platform and Elon Musk did some secret tweets with dog emojis and rockets.
Echoing the earlier calls for Dogecoin to reach $ 1, TikTok and YouTube's prophet Sheba Anu are demanding $ 0.01.
His predictions seem impossible - as I write this, Shiba Inu would have to appreciate 169x to reach 1 0.01.
No one is arguably arguing that the Shiba Anu has any technical improvements over the current cryptocurrencies, but the SHIB-USD will definitely skyrocket if Robin Hood allows trading in coins.
You shouldn't worry about losing speculation as a long-term investor - incorrect pricing creates investment opportunities for long-term investors in neglected areas of the market.
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| Photo: notebookcheck |
Named after the genus of Japanese hounds, the SHIB-USD has grown from $ 3 billion to over $ 30 billion in just a few weeks. Like many altcoins, Shiba is priced at a fraction of a penny, making it easier to quote in terms of market cap than price, unless you have a calculator at all times.
Sheiba Anu gained popularity through a clever trick - the creators sent half a supply (over one billion) of the entire coin to Ethereum co-founder Vitalek Buterin. At the time, Batrain was stranded in Singapore due to Corona virus restrictions, and the creators of Sheba Ano sent coins into its main wallet, which coincidentally contained more than 1 1 billion in Ethereum. He immediately raised some potential red flags, but once Batrain and his team made sure the gift was not a ploy to steal Ethereum Holdings, they rushed to the market to avoid flooding. Decided to burn 90% of the gift and pay the remaining billion or more. In SHIB-USD for charity.
Can the Shiba molecule reach 1 cent?
At the signal, TikTokers and YouTubers have demanded that Shiba Inu reach 1 cent (with their traditional all-cap video titles and rocket ship emojis), an increase of about 169x over current prices and a 5 trillion market cap. I think we can safely reduce this scenario, but in May the peak of Dogecoin's obsession reached just over $ 90 billion in market cap, which is 3 times the current market cap and SHIB-USD's. More likely. Coinbase (COIN) began allowing Sheba Anu to trade in September, which in a short period of time has led to some demand for the coin. In the long run, most altcoins won't make much money, but the tremendous volatility gives you the option to sell far more than you have invested in the short term. Furthermore, academic research shows that assets keep growing at a positive pace, the trick is to sell them when they stop going up.
Fear of getting lost ("FOMO") is a real thing, and the world looks upside down right now. Friends of friends who drink and smoke very little all day, speculating on meme stocks and crypto, are accumulating many years' salary, laughing at why someone would work for a living. Unless this time is really different, the speculative frenzy of 2020-2021 will eventually end just like all the other frenzy, the speculators will eventually be crushed and the money will run out and Fraud will eventually be exposed as soon as the business cycle is over. As a long-term investor, you should not worry about this because, in many ways, insane speculation in certain sectors of the economy is creating opportunities in areas that are hungry for capital. Such as in international stocks, small cap value, and energy companies.
As far as speculation is concerned, altcoins are quite harmless. Unlike well-meaning people bidding for more than 5,000 square feet of homes in the deserts and swamps of the United States, retail investors in crypto do not usually charge for business. If you were on the hook for a $1 million mortgage on a house in Phoenix or Las Vegas in 2008, the feeling would be terrible because you bought your future years of hard work for an asset that had a negative value of millions of dollars. There was equity. . At the crypto poker table, the stakes are very low. Many investors became corrupt by investing in their entertainment budget during the lockdown. I would say that speculation on crypto is fine, provided the stakes are reasonable and that you choose coins without obvious scams or inflation.
I believe there is a catalyst that could greatly increase the value of Shiba Inu, if Robinhood (HOOD) allows consumers to trade coins. Shiba Ino's float is very tight, so if Robin Hood's customers are allowed to buy it, it is possible that the coin will skyrocket. That may or may not be the case - I guess regulators may not want Robin Hood to be at the center of another meme speculative frenzy, but it's not that regulatory pressure has put Robin Hood on. He has stopped doing what he wanted to do. I personally have no Shiba Inu in the past with crypto, but I can buy a little if Robin Hood hints that he will allow trading in it. The biggest threat to surveillance is the so-called wheel wallet, someone with more than $ 2 billion in SHIB-USD that might want to sell. I think people who have studied finance in school study these kinds of things and get stressed out when assets are misappropriated, but people who study economics and history What's more, they can laugh at it like another episode of People's Madness.
Is there a future for Shiba Inu Coin?
Dogecoin has been the poster child for some of the more cryptocurrencies over the past year, and SHIB-USD is basically another Dogecoin. There are some major differences - Dogecoin has a built-in 4-5% annual inflation, while the Shiba Inu shows no inflation, and the Shiba Inu runs on the Ethereum platform.
In the long run, I don't see the full value of Shiba Inu. More than 10,000 cryptocurrencies have been created in the last decade, and most of them have no long-term value. In contrast, there are a few dozen precious and industrial metals. There are only a handful of large fiat currencies. If you study history, people make their own currency and speculation bubbles are not a new trend. Shortly after American colonies founded Boston in the 1600's, they set about making their own currency, hoping Parliament would find out. He soon turned his attention to printing paper money and at first everything seemed fine, so the British closed their eyes. Within a few decades, however, Massachusetts greedily pumped their currency into high inflation, triggering a series of parliamentary crackdowns with the Currency Act.
So, given the rising and falling history of alternative currencies, does the Shiba molecule have long-term value? I don't see long term investment here. While coinage is better than Dogecoin, I wonder what the value of these altcoins will be in the long run. Although you can make money by speculating on SHIB-USD.
Is Shiba Inu a good trade?
One YouTuber I actually enjoy is Anton Kreil, a former Goldman Sachs businessman who ran a British reality TV show almost a decade ago. One of the points he makes about risk management is that risk is subjective, not one-sided. Anyone who wants to trade in cryptocurrencies may find it difficult to make rational decisions in the markets to pay their rent, while those who have gone with the flow have taken amazing advantage by doing nothing. Is.
The appeal of speculation on crypto is simple - you don't have to spend a lot of money to do it, the most you can lose is 100% of your investment, and the most you can do. He is theoretically infinite. Under this framework, what do you really lose by investing a few thousand rupees in some speculative investment where volatility gives you tremendous power?
According to Anton Kreil's points on the risk of being subject to your personal financial situation, taxation is also subjective, meaning that an opportunity may be more or less valuable to you depending on your tax situation. ۔ Speculation is not a free lunch because the US government has designed the tax code to discourage speculation and encourage long-term investment. The implication here is that if you make a profit, you are usually taxed at an effective marginal tax rate of anywhere from 30-60%, when you have several stages of state income tax and credits and deductions. Count to This is disproportionate because if you lose, you can only write off 3,000 plus other profits for the year and move on to the rest. This is even worse if you make a profit in one year and lose money the next year, then you may owe a large tax bill for the first year, and not net against it in the second year.
My golden rule for speculation is looking at tax breaks:
Risk your YTD capital gain on any speculation except for just $ 3,000 a year.
If you track your P / L and limit your speculative activity to the extent that you can write on the loser, you would avoid giving Congress a free shot at whatever advantage it gains. If you lose without any deductions in return.
Shiba Inu price forecast
If Robinhood indicates that they are about to allow SHIB-USD on their platform, investing a little money in SHIB-USD will likely make you a bunch of quick money avoidance of negative tax consequences. I won't bet on the form on it, but wait and see if anything goes with Robinhood, which allows SHIB-USD trading, and whether it will be a hint to you.
If Robinhood allows Shiba Inu trading, I estimate that the market cap will triple to about billion dollar due to the lack of floats. This is similar to Dogecoin's peak market cap during its speculative frenzy. If Robinhood does not allow Shiba Inu to trade on its platform, the coin may become obscure again. Ideally, there would be a gap between announcing support for Robin Hood's coin and actually implementing it, which would provide a good window for trading before the feeding craze. When it comes to meme-based cryptocurrencies, no one knows, but the last few episodes of insanity have shown that if you are smart enough to avoid tax issues as well as speculative enough. At risk, you usually recover. End
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