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A whole lot can happen in just a couple of years. When dog-themed altcoin Shiba Inu (SHIB-USD) launched in August 2020, it was widely considered a joke or a “meme” coin. Today, however, Shiba Inu has earned a measure of respect and is a worthy addition to just about any altcoin collection.
There are plenty of experts out there in the world of cryptocurrency — or so it seems, at least. Everybody and his uncle has an opinion on Shiba Inu, evidently, and one group of experts is forecasting an untimely end to this promising canine coin.
Yet, you don’t have to act on fear or heed the bearish calls of the crypto-verse gurus out there. As always, it’s best to choose facts over FUD and let the chips — or in this case, the coins — fall where they may.
What’s Happening With Shiba Inu?
Shiba Inu seemed like the “little engine that could” back in October 2021, when its price soared to $0.00008. That price, believe it or not, is high for this particular token.
More recently, the SHIB price sank to around $0.00001, testing the resolve of diamond-handed “HODL-ers.” It’s probably not a coincidence, though, that the token’s price fell in tandem with the share prices of technology stocks.
In other words, if you’re bullish on tech stocks, then consider that their recovery could lift altcoins as well. On the other hand, a startling release from price-comparison portal Finder relayed a dire prediction for Shiba Inu. The average prediction was taken from a surveyed panel of 36 “fintech specialists.”
Apparently, the panel forecast that SHIB would plummet to $0.0000025 at the end of 2025, and the near-zero value of $0.000000325 by the end of 2030.
Adding insult to injury, DigitalX Asset Management Head of Funds Matthew Harry opined, “things like SHIB will die as capital begins to flow to quality and value rather than being scattered across the field in the hope that every player wins a prize.”
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Meanwhile, Swinburne University of Technology FinTech Lecturer Dimitrios Salampasis sneered, “these joke-type coins will disappear and leave space for actual innovation and cryptoassets that can serve proper use cases.”
Feel the Burn
What these harsh critics may be ignoring is Shiba Inu’s value as a hedge against fiat-money inflation. After all, two consecutive months of 8%-or-greater annualized U.S. inflation certainly incentivizes the quest for dollar alternatives.
Of course, altcoins are only viable dollar alternatives when their supply is limited — the more limited, the better. Thus, it’s encouraging to discover that a whopping 22 billion SHIB coins have reportedly been destroyed. That tidbit of information comes courtesy of a tweet from Shibburn. Evidently, as of May 22, “In the last 7 days, there have been a total of 22,200,398,699 $SHIB tokens burned and 497 transactions.”
You might wonder why it’s a good idea to destroy tokens like this. Coin “burns” are commonplace in the world of altcoins as a means of pulling pulling currency units out of circulation. The result is a smaller supply of tokens, which could potentially lift each coin’s value.
To put it simply, token destruction can help keep a cryptocurrency’s value stabilize over the long run. It’s a concept that you won’t likely hear in the inflation-riddled realm of American fiat money.
What You Can Do Now
It’s fine to consider experts’ opinions on altcoins. In the final analysis, however, you must weigh the facts and make your own investment decisions.
The massive SHIB token burn is a potential value builder, regardless of what the critics think. Perhaps they’re busy focusing on memes and assumptions, rather than on the grassroots movement that Shiba Inu represents.
So you don’t have to get shaken out of your holdings based on fear and constant criticism. Feel free to proudly hold your dog-faced coins as their numbers diminish and, hopefully, their value grows.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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