Shiba Inu (CRYPT: SHIB) burst onto the scene in 2021, when the cryptocurrency market was experiencing a raging bull market during the second year of the pandemic. Speculative fever was at its peak at that time.
But this meme digital token has come back to earth. Investors looking to buy Shiba Inu (CRYPT: SHIB) Although it is 89% off its maximum price, you should forget about that. Meanwhile, bitcoin (CRYPT: BTC)the most valuable cryptocurrency in the world, could make you rich.
Shiba Inu deserves criticism
Shiba Inu is a cryptocurrency that lives at the top of the Ethereum network, an intentional design by the founders to add functionality. This setup makes Shiba Inu compatible with a wide range of decentralized applications, which is what sets it apart from Dogecoinhis inspiration.
I would argue that Shiba Inu, as well as other cryptocurrencies, are still primarily a tool for financial speculation. This means that people will buy Shiba Inu tokens not because they want to use them in some way, but because of the possibility of making great profits.
However, Shiba Inu can be used for peer-to-peer payments, non-fungible tokens, and betting. And there have been upgrades to the system, such as the Layer-2 Shibarium escalation solution, which can speed up transaction times and reduce costs. There are also plans to create metaverse applications. These developments may make Shiba Inu more competitive with Ethereum and solarium.
However, the evolution of the Shiba Inu price in recent times indicates decreasing interest from the investment community. The fact that the overall crypto market has more than doubled in the last year while Shiba Inu declined by 25% tell me that the best days of this digital token are behind it. I would expect it to outperform the industry and other prominent cryptocurrencies in a strong bull market, but this did not happen.
There's a coin burning mechanism implemented to reduce the gigantic 589 billion Shiba Inu token supply. But at a daily burn rate of 243,000, it barely makes a dent in that high number. As a result, it's easy to be pessimistic about the Shiba Inu's long-term potential.
Bitcoin is already the winner
When Bitcoin was launched in 2009, it was the first time that two people could send money to each other digitally without the use of an intermediary. This was a breakthrough that built on technological innovations from previous eras. Thanks to its meteoric rise, Bitcoin now has a market capitalization exceeding $1 trillion.
The best way to look at Bitcoin today is through the lens of it being an important store of value. In comparison with goldBitcoin, which many people have long considered the best in this regard, has superior qualities. The leading cryptocurrency is more portable, divisible, verifiable and useful in real transactions.
And perhaps most importantly, there will only be 21 million Bitcoin in circulation. It is a hard supply limit etched into the software code. Gold, on the other hand, could see its supply increase if there was an increase in demand that justified investing more in mining capacities.
Although Bitcoin has already soared 210% since the beginning of 2023, there are many upsides. So, if you've been sitting on the sidelines, missing out on the latest rally, it's still a good idea to remain optimistic.
The digital asset will undergo a halve in April. This is when the new Bitcoin rewards miners receive for processing transactions and securing the network are halved, effectively reducing the rate of supply growth. Historically it has occurred in the middle of a bull market. Today we are seeing something similar.
And with the initial success of the new Spot Bitcoin Exchange Traded FundsMuch more capital is likely to flow into Bitcoin over time, now that a regulated investment vehicle is available.
Shiba Inu is not worth your attention. Instead, focus on Bitcoin's impressive potential.
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Neil Patel and its clients have no position in any of the stocks mentioned. The Motley Fool has positions and recommends Bitcoin, Ethereum and Solana. The Motley Fool has a disclosure policy.
Forget Shiba Inu: This Cryptocurrency Could Make You Rich was originally published by The Motley Fool
