Blog 002: I bought XXXXXXX.XXX Shiba tokens

Amid the rising tussle among the government, Reserve bank of India, and digital currency trading platforms, I found Dogecoin. It was valued at INR 4.76 and I bought a few DOGE tokens among other things to know how it felt like investing in crypto.

By the time I educated myself about the space to invest more, I had already missed the wave where 1 DOGE was now worth INR 40. But it's okay, I am not a “why me” person. Instead, I am more of a “why not again” kinda guy.

I explored the internet to find something right for me. And I did. And this is my story about how and why I ended up buying Shiba Inu tokens! Shiba to the moon. Let's go.

Some basics about Cryptocurrencies

Before we get deeper into the article, I think I should explain a few basic concepts and principles that I will be referring to in my article. Besides, these are the fundamentals of the digital currency space and I feel everyone should be aware of them.

Bitcoin

I think you already know this. Bitcoin is the highest valued digital currency in the market. To put it simply, It is similar to currencies like Euro and US Dollars but it is digital, decentralized and only exists electronically as a computer code.

Since digital currencies are decentralized, they are independent of regulation from governments, enterprises, and organizations. This means, no one, NO ONE can control the price of digital currencies. The only factor that it depends upon is the balance between demand and supply.

Cryptocurrency

Similar to the way coins and notes are a medium of exchange for currencies like the Indian Rupee and United States Dollar, Cryptocurrency is the medium of exchange for digital currency such as Bitcoin, Ethereum, Dogecoin, Shiba coins, and many more. There is no limit on how many digital coins can be created.

You could understand it as a bunch of code that serves as a medium for transactions of coins. The term crypto in cryptocurrency refers to data encryption signifying that cryptocurrency ensures the security of the transaction.

Cryptocurrencies do not have any physical counterparts like debit cards and credit cards are for physical currency. Cryptocurrency exists only in a single form, and that is in the form of code secured by data encryption.

Blockchain

Blockchain is the soul behind this entire operation. It is the technology that enables the existence of cryptocurrency. Consider it as a file in your system that contains all the necessary packages to enable the working of crypto. The only difference is, Blockchain operates over a vast network of computers and is not limited to any single system.

Blockchain as a technology is also not limited to just bitcoins and other cryptocurrencies. It is far more valuable and is all set to be the foundation of the decentralized world we are heading towards.

What are Shiba Coins?

Shiba Inu coin is yet another cryptocurrency created by an anonymous person known as “Ryoshi”. The digital currency is modeled after Dogecoin, the meme coin that has seen an unprecedented rise, thanks to the internet community around it and the love that it gets from Elon Musk on Twitter.

Shiba Coin is termed as “Doge Killer” probably because (only a guess) Dogecoin uses the Shiba Inu breed of dog as its logo. The SHIB tokens have so far thus served their name well by soaring a whopping 726% over the fortnight. It could be possible that we are looking at the next doge

What made me buy Shiba coins?

DISCLAIMER: I am still a learner and I do not understand investment well.

I guess I should also make clear that I am a compulsive buyer. Hence, if you are trying to find out some really Casino level gambler reasoning from me, you are not going to get it. The only economical reason that made me go for Shiba was that it’s cheap and I am poor.

Also, I did invest a meager amount in Doge before the surge (1 DOGE=4.76 INR). It was my first crypto investment and I didn't want to lose the few I had. Unsurprisingly, I regret not investing more. And thus my search for the next investment began.

Since the price of doge had skyrocketed (1 DOGE= 30.61 INR), I wanted to move to a low price asset with higher ROI. I looked around and stumbled on Shiba Inu Cryptocurrency and the trading spree began.

Why do I think Shiba has the potential?

SHIBA INU is the latest meme coin entry to the cryptocurrency space. If the rise of a doge is any metric to go by, SHIBA will find its spot on the moon, sooner or later.

Recently, Vitalik Buterin, founder of Ethereum cryptocurrency donated a massive $1 bn worth of SHIB tokens to the India Crypto Covid relief fund, which got India and the world talking about the coin, again. The news followed with a dump in the crypto’s price because it increased the crypto's volume in circulation.

However, in another news a few days later, it was reported that he locked 45% of the remaining tokens to an unknown wallet pulling them out from circulation. This came as great news for all the SHIB holders across the world.

Memecoins like DOGE and SHIB have also been getting a lot of flak from conventional crypto traders. DOGE and SHIB creators as well as their holders are accused of making a mockery out of the crypto space. But I object. I believe we have a lot to learn from the recent rise of dogecoin - The power of the internet.

People don’t understand economics and technology well. Club both of them together and you get cryptocurrencies. However, they do understand memes, quite profoundly. As of now, a coin that started a meme is valued at over $50 bn because people who invested and traded in that coin believed it was worth $50 bn. This goes on to establish the significance of collective belief and that's what I feel is going to work for SHIB too. Even if it doesn't, the investment I have made is something I am already prepared to lose without any remorse.