Hey Everyone! So, being the milker of trends that I SO MUCH wish to be, today is a floow up post from my last post on SHIB. Specifically, I 'm gonna tell you why it doesn't take a dick wielding Merlin of a wizard to logically work out the possibility of a potential crypto trend.
Just as a disclaimer before I start:
1.) I own SHIB. I'm not shilling, more than responding to some stuff I saw on Twatter.
2.) I'm a dipshit. Don't listen to dipshits unless you indeed want to be a dipshit as well. This isn't no investment advice. My name isn't Edward Jones. Invest what you can afford to lose.
3.) Hey, how's it going, Champ? I know that this is new for you, your mom dating someone. I don't wanna replace your dad or anything silly like that, I just wanna come around and get to know you because you're an important part of your mom's life...
Aw shit, I got the scripts switched. Hold on.
Ah, There we are. ANYWAY.
It doesn't take too much in the way of sorcery or Racket Surgery to analyze a potential investment crypto and see a potential trend in the numbers. In order to demonstrate this, I'm gonna talk to you about a few reason why I think it is possible that SHIB could reach oh.... let's say for shits and giggles, $0.001.
One one-thousandth of a penny. That's basically nothing. Is it possible? Well... first we gotta know about a couple things before we can definitively answer that First...
SUPPLY AND DEMAND
We are taking back to the basics of economics here. Whether you're a big bank or Bitcoin, supply and demand is crucial. If you have a lot of a thing and little demand for it, it's likely gonna be pretty cheap.
If you have a little of a thing and a lot of people want it, the demand is higher than the supply and the value of the thing is increased. It really is that simple. Now, there are other more involved topics such as elastic and inelastic supply/demand, but I think for he moment this should suffice.
BITCOIN'S STOCK TO FLOW MODEL
The stock to flow model is a forecast that looks at something very, VERY simple: Supply and Demand! Essentially, the inflows and outflows of BTC into exchanges, as well as the mining rewards from people crazy enough to still do BTC mining sell their coins relatively quickly at market prices. They got bills to pay, and they ain't messing around. The supply is replenished by these sales, and in addition to volume, you get a curve that demonstrates one thing: as the miner rewards decrease over time per the Bitcoin protocols, supply will become scarcer. If demand (Read: Adoption) continues to increase, you will approach a situation where Bitcoin increases in price.
After every BTC halving event, nearly everyone should expect a vast increase the price of bitcoin within the subsequent year or two. For example, The most recent halving event was in May of 2020. Roughly a year later in April 2021, BTC reached an all time high price of around $63,000. That's a spicy meatball.
So now that we know a couple things, let's continue looking into the factors that will INCREASE the SHIB token price.
1. TOKEN SUPPLY
The token supply of SHIB is probably the largest in the Crypto space at the moment with a max beginning supply of 1 QUADRILLION and a current circulating supply of roughly 300 TRILLION. That is a BALLS lot of tokens. I used to think that Bittorrent Token at 1 BILLION tokens used to be high. Silly me.
The token supply is an absolute GLUT at the moment, which drives the price down because it's not very scarce. One of two things (preferably both) needs to happen:
1.) Tokens need to get burned. This reduces the available supply, and there is precedent for it. Many tokens have already been burned. Vitalik Buterin was gifted with half of the SHIB supply. he burned a majority of it and used the rest to assist with COVID relief in India. Great guy.
Additionally, from what I understand Shiba Swap will burn SHIB for transactions. I have not yet managed to use it, but I hope to do that in the future and write about it. That's another good source of reducing supply.
2.) Demand needs to be increased. This is the hard part, but a part that the folks at SHIB appear to be doing by building a community around it. As of today (September 16 2021) SHIB is now available on Coinbase, which is insane. If you want access to a large group of crypto investors, Coinbase is a pretty good start. In addition to the other places where SHIB is available, I expect demand to drastically increase as the year closes.
THE STOCK MUST FLOW....
In addition to token supply and demand, The Bitcoin Stock to Flow Model must continue on its merry way. As of right now, BTC is the market. Sure, there are other coins, thousands of them. BUT Bitcoin controls the market. If the value of Bitcoin increases, then the value of other top coins will follow. In other words, BTC is the tide that raises all boats. While I'm no maximalist, That's just the writing on the wall. Bitcoin is King, and it is also deflationary. As the coin becomes scarcer, the value will increase. Every coin on the PLANET is paired with Bitcoin, and that is in part why the tight relationship exists. As BTC market cap increases, it becomes more plausible for extremely high market caps, which would be necessary for SHIB to drastically increase in price in addition to its supply and demand.
FINAL ASSHOLE WORD
It is VERY much possible that SHIB can increase in value, but there are caveats. If the project is ultimately unsuccessful, they refuse to burn large amounts of SHIB, or otherwise people simply don't continue to buy it, these could cause the coin to never surpass its current all time high.
BUT it can happen. A few things need to go right in order for this to occur. If you believe these things can happen and you have money you can afford to lose, go for it. Speculate to your heart's content. I did, and I'll just sit on it and see what happens. Keep up with the most recent SHIB news, and watch where it is advertised.
When I first looked into SHIB, that was what caught my eye, places like eToro were shilling the FUCK out of it, and I expect that to continue as long as it is still in the public eye.
When BTT was still relatively new I invested in it and bought 4 million. I thought, no big deal, we will see what happens... until I became impatient and sold it for another project. if I still had it today, it would be worth about $16,000. At its highest, I could have had about 40 THOUSAND US DOLLARS. Fuck my life.
And that's why you don't listen to a dipshit. Oh, BTW, thanks for reading!
Keep your eye on the markets. Perhaps that high supply coin could net you a mint someday.
This is a good info for me because I thought Shiba is nothing to consider for investors. However there are a few other Shiba that I don't understand there story. Please explain them and there potential.