Newbies in the crypto space may see Shiba (SHIB) or any other meme coin as an incredible opportunity to get in early and see similar returns as those first Bitcoin investors. Of course, this is not how it works, especially as more and more meme coins hit the market.
SHIB is indeed cheap. You can own a million SHIB for just 20 USDT!
But what does it even mean? In the end, in judging the viability of an asset, we’d have to take into account the market cap, how many holders there are and to what degree we can see concentrations of capital; we would have to look at security, the competitive environment, volatility, liquidity and the asset’s track-record in the face of different market events.
What we have to understand is that most traders who jumped on Shiba are either new to the crypto space altogether, with meme coins being their first exposure to crypto – mostly coming from the WallStreetBets/GameStop community, or more experienced crypto traders who are just in it for fun.
Is It Possible To Get Rich With Shiba?
Anyone can become rich, playing a game of Roulette. Shiba can also make people rich, if they had invested a good sum and if they sold at the right time. There may even be some who intend to continue to accumulate in the hope that Shiba will one day pick up, the way Dogecoin did after so many years of predictable pump and dumps.
However, it’s important to understand that memes are memes only because they are fleeting and can quickly be obscured by other, equally funny memes. In general, memes have immense potential to capture the crowd’s imagination and unite a group of people behind a single idea. Memes also help to simplify complex issues and communicate serious matters in a light-hearted way.
Investing in memes as a concept, for example, by way of a meme etf, or a meme index, would not even be such a bad idea. Going all in on a single meme is hardly ever a good idea.
Is Bitcoin ‘Old School’?
Bitcoin is old school in the same way ‘the wheel’ is old school or satellites that rotate the Earth. The point is, if Bitcoin sees real adoption, we can expect this asset to have an incredibly long life, just as gold has been with us for thousands of years. The reason is that once an asset has truly grown to serious proportions – i.e. 100 Trillion USD – the interest in this asset class and in keeping it safe and secure will be no different from what we can see at Fort Knox or Area 51 for that matter.
Bitcoin is still young and every year, more and more improvements are made to the system (upcoming, Taproot; before, Multi-Sig). In a way, it’s best compared to bringing people online.
There was a time when no one in the world except for a few mysterious intelligence officers were on the Internet. Now, nearly the entire world in online, but the project is still ongoing. Do you believe that unless a huge solar flare kills most life on Earth, humanity will ever really go offline again? What about when we move into space?
Now, what can happen of course, is that we find something better than the Internet. Perhaps there is some device which grants access to a layer in the universe where thoughts also reside. By connecting this special device to our brain, we can then simply think of someone, and communicate. Let’s not get into the practicalities – it sounds pretty bad right now. If we find something better than the Internet, then humanity will probably need another 50 years to transition.
And so it is with Bitcoin. It offers a truly decentralized base layer monetary system. Right now, around 1-2% of the world population has embraced Bitcoin and entered the Network; in the future, it will be just like the Internet.
The future of meme coins
Bitcoin has thousands of developers and serious organisations looking at Bitcoin and participating in the process of improving the Network. This is the real work and it will take time, maybe even multiple decades.
While this revolution is taking place, centralized and semi-decentralized projects are likely to pop up — these projects are important to understand the capabilities of this new technology.
Some of these projects have turned into proper companies or opted to operate as a Decentralized Autonomous Organization (DAO), but in all cases, there are people who are responsible and there are points of failure. These projects, and especially meme coins, can only really thrive with Bitcoin functioning as the ‘lender of last resort’, the gold layer that forms the foundation of the digital economy.