Got a $100 bill burning a hole in your pocket? Not averse to volatile assets? If so, I invite you to put $100 on the chopping block with a high-risk but potentially high-reward digital token: Shiba Inu (CRYPTO: SHIB). After all, if you're only investing $100, slow-moving stocks will get you nowhere fast and even Bitcoin might not bring you the multibagger returns you're probably looking for.
Just don't be surprised if a single $100 Shiba Inu purchase isn't enough. Once you get involved with this underdog of a digital asset, you might be hooked -- so be careful.
It's all about the community
Admittedly, Bitcoin's huge market cap and widespread recognition make it seem like a safer bet than a relatively tiny token like Shiba Inu. Plus, some big-token aficionados might contend that Bitcoin and Ethereum have more use cases than Shiba Inu.
Fair enough, but what Shiba Inu may lack in utility, it makes up for with community. Indeed, as a Shiba Inu "HODLer" (crypto lingo for "holder") you could easily end up making friends online and forming something resembling a support group when the going gets tough.
With Shiba Inu, you feel like you're part of something esoteric -- something special that most people haven't caught on to yet. You'll probably find yourself checking the official Shiba Inu Twitter account regularly for updates on the latest Shiba-centric developments, including new Shiba Inu listings on cryptocurrency exchanges.
I don't want to wax rhapsodic, though, as you can easily run into "Shiba Inu is going to $1 in 2023!!!" screeds on social media any time you want to jump down the rabbit hole. After all, there are substantial risks with a digital asset like Shiba Inu, especially in the wake of the Securities and Exchange Commission (SEC) suing crypto exchanges Coinbase Global and Binance. The point is, Shiba Inu's uber-social aspect is a definite advantage, but it's not a valid reason to wager much more than, say, $100 on it.
Less is more with Shiba Inu token burns
If you scroll down the aforementioned official Shiba Inu Twitter feed, you might detect loud and proud celebrations of token burns. Don't be alarmed -- in the world of Shiba Inu, believe it or not, destruction is constructive.
Bear in mind, one of crypto's selling points is that, unlike with government-issued fiat currencies, cryptocurrency has a limited supply literally coded into it (or at least, that's true of Bitcoin, Ethereum, and Shiba Inu). One of the main reasons you'll want to wager $100 on Shiba Inu is the community's eagerness to destroy some of the tokens and to further limit the supply.
Because Shiba Inu tokens only cost a minuscule fraction of a penny, it's not particularly disruptive for investors to "burn" or destroy some or even many of them. There's even a website called Shibburn.com that keeps track of the latest Shiba Inu token burns. Supposedly, none other than Ethereum co-founder Vitalik Buterin burned $6.7 billion worth of SHIB tokens (I can't confirm this, but it's an awesome number even if it might be apocryphal.)
Only a close-knit community of outside-the-box thinkers would even consider doing something like burn its own tokens. Yet, expecting the unexpected is par for the course when you're part of a movement supporting a cryptocurrency that few financial traders took seriously at first. So, feel free to put $100 on Shiba Inu as an all-or-nothing bet. If worse comes to worse, you'll end up sacrificing a few bucks, but at least you'll have made some friends and had some fun along the way.
David Moadel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.
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