What Is Shiba Inu Token?

Img Source - The Economic Times

Shibu Inu is one of many cryptocurrencies (sometimes referred to as digital currency) available online. Shibu Inu was created in 2020 but didn’t gain much attention until 2021. At one point, the coin was among the 10-largest cryptocurrencies by market cap (see Yahoo).

Understanding the Shiba Inu Token

The coin is named after the Shiba Inu dog. There’s a similar coin called Dogecoin, which also features the same breed of dog as its logo. Some people get the Shiba Inu and Dogecoin cryptocurrencies confused because they are so similar. However, the Shiba Inu ticker symbol is SHIB. And the Dogecoin ticker symbol is DOGE.

How Shiba Inu Works

Shiba Inu operates on a blockchain database. The database is located on a decentralized computer network. This particular blockchain database manages and tracks Shiba Inu transactions. Every Shiba Inu transaction is verified and recorded on the blockchain.

Shiba Inu doesn’t have its own blockchain. Instead, Shiba Inu runs on the Ethereum blockchain. And the coin depends on the functionality and safety provided by the Ethereum blockchain for its security. 

Shiba Inu Value

Cryptocurrency values fluctuate by the hour. Currently, Shiba Inu trades for fractions of a penny. It would take more than 200 Shiba Inu coins to earn one cent. However, the value of all Shiba Inu coins in existence is more than $2 billion. That’s because it has a large supply of coins in circulation.

You should thoroughly research any cryptocurrency in which you want to invest. There’s a lot of crypto available, and as stated earlier, value prices change drastically on a daily basis. However, Shiba Inu has shown a substantial increase in value since its existence. But that doesn’t mean it will continue to increase in value. That’s why research is important before investing. 

Cryptocurrency isn’t the same as a traditional investment. For example, a stock is backed by assets and/or cash. It’s like investing in a business – if the business does well it affects the stock. But crypto, like Shiba Inu, is different. 

Shiba Inu isn’t backed by assets or cash. Money is made when the price of a coin rises, and someone buys at that higher price. It highly depends on popularity, speculation, and optimism. 

However, some buyers are interested in moving away from traditional money. And they support cryptocurrency as a new form of currency.

Shiba Inu Research is Key

The bottom line is that anyone interested in Shiba Inu or any cryptocurrency should carefully consider their decision before investing, says Fool.com

Prices rise and fall constantly, so it’s impossible to know exactly when a coin will increase or decrease in value. Thoroughly research cryptocurrency market prices before investing in anything. 

Shiba Inu is still a relatively new cryptocurrency. It came along at a time when more people were becoming interested in digital currency. The coin could rise to the moon or do the exact opposite. The important thing is to research market prices before investing and to only invest money that won’t hurt to lose.