So these past two weeks have been great for SHIB investors but what many lack to realize is the hype bubble behind it. I shared a meme this week that requires a little bit of pop culture and investing knowledge to understand. Beavis and Butthead, if you've ever seen the show is about two very dumb teenagers. US Gold Buyers is one of the largest American organizations that trades gold, who announced they'll begin trading for the cryptocurrency - SHIB.
SHIB is a fairly new cryptocurrency whose price has recently skyrocketed in value from a hype train but has no utility with its blockchain and serves no economic purpose other than a store of value.
Gold is one of the best investments you can ever make in terms of inflation hedging. It's an asset you can hold in your hands, accepted as currency anywhere in the world. It's price will fluctuate but slowly rise over time. While it's only gained 6% in the last 10 years, it's consistent growth and lack of volatility with worldwide utility makes it a top tier asset. It's the world's most malleable metal and serves many purposes from chemical engineering to electronics.
Here's the meme and text from my social media post - "Me and the boys when US Gold Buyers announced they will trade physical gold bouillon and coins for our SHIB cryptocurrency."
Gold doesn't suck and you'd have to be Beavis or Butthead to think so. SHIB is great, but only for the short term. Unless there is a dramatic market application for the crypto. DOGE hodl'rs should heed the same warnings. We saw SHIB outperform it in terms of market cap. Market cap is the total value of all shares.
The most credibility these projects bring to the table is we've seen that Elon Musk has been in talks with DOGE to find market application, real use of its blockchain. Which it doesn't have yet, so investment is still pure speculation. These coins are only viable for short term gains so far, you will risk losing your funds investing in them. Especially at an all time high of this magnitude in the crypto world.
Bitcoin, Ethereum, some others are here to stay. It seems that the top 10 crypto's still often have dramatic changes. SHIB now at number 9 and DOGE at 10. They don't really offer much, compared to coins like KRL or TEL. It's entirely possible that we'll see serious market application one day for DOGE and SHIB, but it's not as guaranteed as physical gold.
Hype and meme inflation was a huge indication of bitcoins upcoming price collapses with bear markets after its prior all time highs. We're seeing this now. While there's a chance Bitcoin and Etheruem will continue paving the way for shitcoins. Blockchain market application will be the true factor in determining prices and stability here for investors.
Bitcoin is still very young at 12 years old and it's the leader here. It's substantial growth so far has always been met with bear markets following it. Maybe it will break that pattern or reach a price so high that by the time it drops 90% its from 500k to 50k bottom floor price. Nobody can tell the future, so don't invest like you know the future. Invest with extreme caution and diligence.
Business Goals Agency wishes that everyone invests wisely. With the consult of a legal financial professional. Make sure you understand the blockchain ecosystem. How blockchain will change the world. Which projects like Bitcoin and Ethereum are actually doing it. That if you must invest in hype. Understand you're investing in hype, not something that serves a purpose yet. While the things that serve a purpose in this market are still in their adolescence.