The Shiba Inu coin soared to become the best-selling cryptocurrency at the 12th place. His success rose thanks to 'Meme Lord' billionaire Elon Musk who endorsed the dog logo coin that started with this meme.
However, there are things that need to be considered when investing or trading Shiba Inu. It is possible that this coin will lose its value in the future. Here we summarize
1. Transactions in the real world are still lacking
Some coins in the crypto market still doubt the lack of real-world utility. Before arguing 'but Dogecoin has gone up!', let's discuss it further.
Dogecoin is accepted by more than 1,700 businesses worldwide, including cinema chain AMC Entertainment. But it took Dogecoin eight years to reach this level of acceptance. Compared to Shiba Inu, Dogecoin looks like a widely accepted digital token.
After more than a year since its debut, online business directory Cryptwerk notes that only 88 mostly unknown companies accept SHIBs as a form of payment.
2. On average they are only detained for less than a week
Based on data from Coinbase, the average Shiba Inu coin holder only holds their coin for about 6 days. The percentage increase in the value of the Shiba Inu has jumped to 5,100,000% since August 1, 2020 but on average only storing this coin for less than a week is a warning to be careful and wise in investing.
3. Historically, short-term gains did not last
For example, cryptocurrency mining company Bit Digital (NASDAQ:BTBT) was the best-performing stock of 2020, recording a gain of nearly 3,700%. Bit Digital specifically focuses on mining Bitcoin (BTC), the largest digital currency by market cap. But in 2021, Bit Digital's shares are down 51%, which is actually down from nearly 81% in mid-July.
Actually, there is nothing wrong with investing in cryptocurrencies. However, given the very high volatility, which can go up and down for hours or even minutes, further calculations and research should be conducted on the right momentum to invest. The point is, don't just go along with it.
