Shiba Inu (Salogner -1.39%)) climbed 45,278,000% in 2021, which means that you bought it on January 1 and sold it on December 31, an investment of $ 3 could have made you a millionaire. Unfortunately, none of us has a crystal ball.
It turned out to be nothing more than a speculative rally because Shiba Inu had lost more than 90% of its cutting-edge value by mid-2022. But the same has recovered from its low point thanks to the improvement of the feeling of investors, which reached feverish levels when Donald Trump won the presidential election last November.
Investors hope that the Trump administration will impose user -friendly policies and reduce the regulatory burden on industry. Could these catalysts send Shiba Inu at $ 1 per token in 2025? The answer will surprise you.
The cryptography industry is more precious than ever
The total value of all cryptocurrency In circulation reached a record summit of 3.9 billions of dollars in December, after spending more than two years on a lower market. Shiba Inu represents a simple fraction of industry value because its market capitalization is only $ 11.4 billion. Bitcoin (BTC -2.23%))On the other hand, is worth 2.1 billions of dollars and climb.
President Trump was a great crypto supporter on the campaign track, but he particularly liked Bitcoin. He launched his support behind ideas such as establishing a strategic reserve within the US government, which would see the Treasury Department becoming an active Bitcoin buyer on the free market.
After winning the elections, he also appointed Paul Atkins to lead the Commission of securities. Atkins is currently co -president of the Token Alliance, which is a crypto advocacy organization, so investors hope that it will approach the industry with a light regulatory touch. Which could open the way for new use cases for many cryptocurrencyWhich is the key to creating long -term lasting value, especially for speculative tokens like Shiba Inu.
In the current state of things, many investors Consider bitcoin as a good reserve of valuesimilar to a digital version of gold. Shiba Inu is missing this support for a certain number of reasons – he has no concrete use cases, he has a problem of substantial food, and he does not work well as a currency because it is built on heritage Ethereum network, which can be clumsy and expensive to use.
This is why, despite the recovery of its low point in 2022, Shiba Inu is Still down 77% From its summit in 2021, while Bitcoin continues to walk towards new record levels.
Shibiba Inu supply problem
The reason why Shiba Inu is negotiated at a tiny price of $ 0.000019 per token is because of its enormous offer. There are 589.2 trillion Tokens currently in circulation – compare it to BitcoinFor example, which has a full fixed offer of only 21 million pieces.
Simple mathematics dictate that if Shiba Inu has reached a price of $ 1 per token, multiplied by its supply, its market capitalization Would be 589.2 Billion of dollars. This would make 163 times more precious than the largest company in the world at the moment, Applewhich is worth 3.6 billions of dollars.
Technically, Shiba Inu would also be more precious than the combined wealth of each person, business and government on earth, which amounts to 454 billions of dollars at the end of 2022 (according to the UBS).
The Shiba Inu community tries to solve the problem of the offer of “burning“The tokens, who remove them from traffic forever. The theory could open the door at a price of $ 1.
Image source: Getty Images.
The Shiba Inu path to $ 1 will amaze you with your mind
Here is where things become difficult. About 99.99998% of the current offer must be burned to justify a price of $ 1, on the basis of the Shiba Inu current market capitalization. In other words, almost every 589.2 Billions of tokens in circulation should be eliminated, leaving only 11.4 billion.
Only 1.2 billion tokens were burned in January, which results in an annualized rate of 14.4 billion.
Obviously, that will not be enough to send Shiba Inu at $ 1 in 2025, but here is the shocking part: it will take a huge 40 916 years To burn all the necessary tokens to the current rate.
If you hope to earn money, I have even more bad news. Burning tokens do not create any value – it simply reduces food, which makes each token appear More precious because it is negotiated at a higher price. In reality, even if you have lived for the next 40,000 years, you would simply have 99.99998% less tokens with the rest of $ 1 each.
Therefore, your net financial situation would be exactly the same as today. Well, in fact, you would be a lot Worse still after 4,000 decades of inflation.