Many investors might think that Shiba Inu is a good investment, with its massive gains of more than 121,000,000 percent in less than 10 months. Unfortunately, experts argue that SHIB could lose all its value in the coming months. They also suggest three alternative coins traders can invest in.
It is undeniable that Shiba Inu features an outstanding market up to date. It outperformed other cryptocurrencies and brought out jaw-dropping gains this year.
For reference, SHIB started trading at $0.000000000073 on January 1. At the time of writing, it is trading at $0.000042560 per Coinbase.
However, it is important to understand the nature of Shiba Inu. Experts say that because of its massive gains, SHIB is also one of the most dangerous markets in the cryptocurrency industry.
Shiba Inu Price: Experts Issue Major Warning
According to The Motley Fool, there are three reasons why SHIB could lose all its money overnight. These reasons also serve as indicators for an unstable cryptocurrency market, which might die out in the long run.
No Real-World Value
Shiba Inu is only accepted as a payment method by 35 merchants worldwide, approximately 0.00007 percent of all global businesses. Having such a tiny market presence implies that SHIB has no value in the real world. It means the coin would have no purpose outside trade.
No Competitive Edge
Another big issue with Shiba Inu is its lack of identity. Note that SHIB is an ERC-20 token built on the Ethereum blockchain, so the occasional processing lag on the network often affects Shiba Inu markets. Even worse, over 1,900 new cryptocurrencies got announced last month, and most of them easily out-innovate Shiba Inu's capabilities.
No Strong Backer or Supporter
In September, one of the richest men in the world, Elon Musk, tweeted about his Shiba dog, which boosted the meme coin's markets. However, Musk never showed direct support for Shiba Inu. In fact, he snubbed SHIB, saying he had no investments in it. Instead, Musk chose to stay faithful to Dogecoin.
Is Shiba Inu a Good Investment? Other Markets You Can Choose
Some investors might find these indicators lacking and would opt to continue investing in SHIB. But for others who understand the risk, it might be better to choose the other markets that The Motley Fool listed out.
- Cardano: Out of all the cryptocurrencies, Cardano might be the best market to invest in long-term. It lays out system frameworks that improve processing speeds, lower transaction costs and increase security on the network.
- Nano: This features a unique network with block-lattice blockchain. It also offers incredible speed and rapid scalability, which might create fee-less trades.
- Algorand: It is a modest cryptocurrency market that has gained over 369 percent increase this year alone. For what it's worth, it uses a refined consensus mechanism called pure-proof-of-stake (PPoS), which ensures hodlers can't disrupt the network.