Shiba Inu (SHIB) is one of a number of pet coins that have grown in popularity since Dogecoin’s (DOGE) stratospheric growth.
Dogecoin is a parody cryptocurrency that was launched in 2013 to make fun of the way people bought cryptocurrencies they didn’t fully understand. It was based on a popular meme of a Shiba Inu dog that spoke in broken English (exactly as me).
Its light-hearted approach attracted a broad community of fans. Tweets from Elon Musk and other celebrities have helped increase the price.
Why are people investing in pet coins?
I don’t know about you, but I’m struggling to understand the appeal of Shiba Inu. What is its relevance to cryptocurrencies?
Don’t get me wrong: Shiba Inus are very cute dogs. But they’re also highly intelligent, family-orientated, and just generally awesome animals. But at this point you’re probably wondering why I’m recommending you don’t invest in pet coins.
The price of Shibas is subject to speculation
Shiba’s price increase demonstrates how volatile meme cryptocurrencies like this can be – Musk tweeted a picture of his dog. Musk named his pet Shiba Inu Floki when he bought it in September. He tweeted a picture of the puppy with the caption “Floki Frunkpuppy” on Monday. The tweet had nothing to do with Shiba Inu coin, but it was enough to entice his followers to purchase the coin, thereby increasing its value. It goes without saying that any currency that can be so heavily influenced by someone tweeting a picture of their dog is not a good investment. While such currencies can make money, anyone investing should be prepared to lose their entire investment. Musk has frequently demonstrated his ability to influence the cryptocurrency market – even large coins like Bitcoin. He has previously been a vocal supporter of Dogecoin. I must say it’s a pure speculation it has nothing to do with investing.
Why you should not invest in Shiba Inu
Shiba is just one of thousands of meme coins that have appeared. The rise of cryptocurrencies has attracted speculators and day traders who are only interested in short-term price movements. Moreover, traders have favored meme-based coins over coins that promote a superior technology or underlying use case. Shiba coin can be thought of as social phenomena rather than financial investments. It was created as a joke and should be treated like one.