Many articles, YouTube videos, and forum posts claim Shiba Inu (SHIB) crypto can reach $1 in value. Unfortunately, those claims are not only misleading; it’s dangerous for retail investors. In this article, we will explain why SHIB can never hit $1.
Shiba Inu (SHIB) will never reach $1. It’s financially, technically, and mathematically impossible. There’s not enough money in the entire world that can propel SHIB’s price to $1.
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.
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.
From our experience, we can confidently say, the long-term success of a cryptocurrency largely depends on technology and community. It’s why Bitcoin is the largest cryptocurrency. It’s not only the pioneer but also has the most prominent crypto following in the world.
So, despite SHIB being similar to other ERC20 token coins, the community is the differentiating factor.
According to CoinMarketCap, there are currently 589 Trillion SHIB coins in circulation. Yes, it’s Trillion. Initially, there were 1000 Trillion SHIB (1 Quadrillion), but around 411 Trillion has been locked away forever.
To Shiba Inu (SHIB) reach $1, the total market cap of SHIB has to be 589 Trillion x $1 = $589 Trillion. Let’s compare this market cap with other financial instruments.
- 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.
- According to the Federal Reserve, there are around $8 Trillion and coins in circulation in the world.
- The GDP of the entire planet earth is around $80 Trillion. (source)
- According to the US government, the US raises $4 Trillion in annual taxation.
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|
From the above chart, we see that for SHIB to reach $1 price, the total market cap of Shiba Inu has to be 589 Trillion x $1 = $589 Trillion. It’s financially and technically impossible.
SHIB is based on Ethereum ERC20. Therefore, it does not make sense that SHIB’s market cap will be more than Ether’s market cap – which is $0.5 Trillion. Moreover, Bitcoin’s – the world’s most popular cryptocurrency – current total valuation is around $1.1 Trillion. Therefore, according to simple reasoning, the SHIB coin will never even reach a valuation of $1
SHIB is a monetary token, as the US dollar. 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.
In short, Shiba Inu (SHIB) will never hit $1. Please invest wisely.