February 29, 2024
Crypto

Forget Shiba Inu: This Cryptocurrency Could Make You Rich


It’s no secret that cryptocurrencies can balloon to unimaginable prices seemingly overnight. No better example of this occurred than in 2021 when Shiba Inu (SHIB 0.32%) skyrocketed nearly 900% in a matter of weeks.

Unfortunately, Shiba Inu’s well-known defects will likely impede its ability to replicate its past success. For investors seeking a safer and more reliable path to riches in the world of cryptocurrency, there is no better choice than Bitcoin (BTC 0.16%).

Bitcoin on a computer chip.

Image source: Getty Images.

Breaking down the basics

There are myriad reasons why Bitcoin is better than Shiba Inu, but the most influential and evident comes down to one thing: supply. In this regard, Bitcoin is the antithesis of Shiba Inu.

Shiba Inu has more than 589 trillion tokens in circulation today. Bitcoin has just 19.25 million. While the meme coin has an infinite supply, Bitcoin’s is capped at 21 million, with the remaining 1.75 million set to gradually enter circulation at a dwindling rate over the next 116 years.

Algorithmically controlled through a process called a “halving,” Bitcoin’s robust monetary policy means it is much better suited for long-term appreciation. Approximately every four years, the reward that miners receive for validating transactions is halved. This reduction in the reward rate leads to a decrease in the creation of new Bitcoins and contributes to the overall scarcity of the cryptocurrency.

The halving process will proceed on its scheduled timeline until 2140, which marks the year when the last Bitcoin will be mined, and the cryptocurrency will enter unprecedented territory.

Even though Shiba Inu’s price was able to overcome its token supply in its early days, it’s more challenging today as the market becomes more familiar with its flawed structure. In recognition of its disproportionate supply, Shiba Inu developers introduced a burn mechanism to reduce the supply and artificially increase its price. So far, the efforts have proved futile.

As the crypto market surged in 2023, Shiba Inu was more or less left behind, as its overwhelming supply outpaced any demand. While Bitcoin grew by more than 150%, Shiba Inu climbed a measly 25%.

Bitcoin is just getting started

The difference between Bitcoin and Shiba Inu serves as a microcosm of the growing disparity between Bitcoin and the rest of the crypto market. While developers implement upgrades and solutions to make other cryptocurrencies more functional, Bitcoin has no team of developers manipulating it.

This is because Bitcoin doesn’t need them. Its original design is simple and capable, and epitomizes what a cryptocurrency should be. Day after day and year after year, Bitcoin continues to operate just as it has since launching in 2009 without any developers or centralized entity. It should come as no surprise then that Bitcoin has risen to become the most valuable cryptocurrency since it is also the most secure, decentralized, and resilient.

Best of all, this realization is solidifying and, on its current trajectory, adding further demand to its scarce supply. Take the recent approval of 11 new Bitcoin ETFs as evidence of this. For years, Bitcoin was written off as a speculative and worthless asset only used by criminals. Fast-forward to today, and it has become the most valuable cryptocurrency with a new home on Wall Street.

Analysts like Ark Invest’s CEO Cathie Wood believe that increased adoption from traditional finance could be the catalyst that sends Bitcoin to new heights. With tens of trillions of dollars at their disposal, if just 1% of this capital from institutional investors flowed into Bitcoin, its price could reach more than $1.5 million. That would be an increase of more than 3,000% from today’s prices.

Is that enough to make you rich? Who’s to say? The concept of “rich” is clearly subjective and varies from person to person. While the cryptocurrency market is full of uncertainty, there are few things more objective than the simple fact that Bitcoin is built for the long haul and remains the best option for investors seeking true decentralization, security, and scarcity.

RJ Fulton has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.



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