SHIB is one of the newest cryptocurrencies, which has a strong community following. Many articles, YouTube videos, and forum posts claim Shiba Inu (SHIB) crypto can or have the potential to reach $0.50 in value.
Unfortunately, those claims are not only misleading; it’s dangerous for us – the retail investors. In this article, we will explain why SHIB can never hit 50 Cents.
Shiba Inu (SHIB) will never reach $0.50 or 50 cents because it is financially illogical, mathematically impossible. There’s not enough money even in the entire world that can propel SHIB’s price to 50 cents.
At a $0.50 valuation, the total market cap of SHIB will be $274 Trillion, which is 14 times of US GDP, 3.5 times of World GDP, 274 times more than Bitcoin, 550 times more than Ethereum, 137 times more than Apple (AAPL), and 274 times more than Tesla (TSLA) market cap.
Bitcoin, Dogecoin is a standalone cryptocurrency. These cryptos have a mining system. Independent miners worldwide run thousands of mining computers (rigs) to keep the network alive and running.
However, SHIB is an ERC20 token-based cryptocurrency. It means the Shiba Inu (SHIB) coin does not have any independent mining network. Instead, it’s an Ethereum smart-contract based cryptocurrency, similar to Binance Coin (BNB), Tether (USDT), Chainlink (LINK), USD Coin (USDC), TRON (TRX), etc.
Therefore, the SHIB coin is not something new. It’s another ERC20 token on the Ethereum network. But we have to give credit where credit is due. The SHIB community is robust on Reddit, Twitter, Facebook (Meta), YouTube, and other social media platforms.
So, despite SHIB being similar to other ERC20 token coins, the community is the differentiating factor.
According to CoinMarketCap, there are currently 549 Trillion SHIB coins in circulation. Yes, it’s Trillion. Initially, there were 1000 Trillion SHIB (1 Quadrillion), but around 451 Trillion has been locked away or burned forever.
To Shiba Inu (SHIB) reach $0.50, the total market cap of SHIB has to be 549 Trillion x $0.50 = $274.5 Trillion. Let’s compare this market cap with other financial instruments and determine whether it makes sense or not.
- According to the Federal Reserve, there are around $8 Trillion and coins in circulation in the world.
- According to the US government, the US raises $4 Trillion in annual taxation.
- According to the Federal Government, the US’s total Gross Domestic Products value is around $20 Trillion, whereas China’s GDP is around $14 Trillion.
- The GDP of the entire planet earth is around $80 Trillion. (source)
Here’s a table that shows the market cap of various popular stocks and metals in the world.
|Microsoft (MSFT)||$2.48 Trillion|
|Apple (AAPL)||$2.47 Trillion|
|Tesla (TSLA)||$1.1 Trillion|
|Amazon (AMZN)||$1.7 Trillion|
|Google (GOOGL)||$1.9 Trillion|
|US GDP||$20 Trillion|
|China GDP||$14 Trillion|
|World GDP||$80 Trillion|
|Stock Market Cap of the Entire World||$97 Trillion|
Bitcoin’s market cap is $1.1 Trillion. It’s because there is a total of 18.8 million Bitcoin in circulation. The current price of each Bitcoin is around $62,000. Therefore, Bitcoin’s market cap is 18.8 million x $62,000 = $1.1 Trillion.
To SHIB reach 50 cents, the total market cap of Shiba Inu has to be 549 Trillion x $0.50 = $274.5 Trillion.
The total cryptocurrency market of all coins and tokens combined is under $2 Trillion.
It does not make any logical sense that SHIB’s market cap can be 274 times more than that of Bitcoin, 550 times more than Ethereum, 137 times more than Apple, 14 times more than US GDP. Therefore, according to simple reasoning, the SHIB coin will never even reach a valuation of $0.50 or 50 cents.
SHIB is based on Ethereum ERC20. SHIB is a monetary token on the Ethereum network. It’s not a product, not a platform, unlike Apple, Tesla, or Microsoft.
Apple, Tesla, Google, etc., are precious companies because they make excellent products that consumers use and love. It’s why they are Trillion dollar company. On the other hand, SHIB does not create any product; it’s a currency. A currency does not have inherent value long term.
It’s absurd that the total market cap of SHIB will be more than Bitcoin, Ethereum, Apple, Tesla, and other valuable companies when SHIB is nothing but an Ethereum based ERC20 token.
As an investor, we have to be impassioned. Being an emotional investor will cloud our judgment and will lead us to make terrible money decisions. Please invest wisely.
In short, Shiba Inu (SHIB) will never hit $0.50 or 50 cents.