Hello Guys😃

This is the 7th post in my challenge ( the challenge is to write and publish one article daily for a month, after that i will share with you guys my results 😉)

In this post , we will discuss about shiba inu coin , and we will focus on some future signals, and price prediction.

So, What is Shiba inu Coin??

Shiba inu coin is a crypto project known for creating millionaires and millions of losers as its extremely volatile price swings up and down.

This crypto is named after an adorable breed of dogs, shiba inu traces its origins back to dogecoin which was the original meme coin crypto as far as i can tell dogecoin was created when someone said people like dogs and people like crypto so let's put them together.

That sounds this turned out to be a powerful combination and as the original doge memes mostly of shiba inus in one form or another started to include dogecoin the crypto took off but what started as a joke quickly became a lot more serious.

People started making serious money investing in the doge with some early investors making more on dogecoin, than they did working their jobs and as dogecoin rose up the ranks of cryptos some supporters like "elon musk" even said it was a better digital currency than something like bitcoin since it was a lot cheaper easier to transfer and it was inflationary.

After dogecoin's meteoric rise in 2021 and eventual peak the coin has since lost 90 percent of its value leaving many who missed out wishing that they could have had a piece of that which is where shiba inu coin enters the stage spurred on by the success of dogecoin.

Many other meme coins pop up supported by investors who wanted to get in on the ground floor of the next big thing in crypto .

Shiba inu is currently the 14th largest crypto by market cap and only a few billion dollars smaller than dogecoin in terms of overall investment dollars.

Shiba inu is like a lot of meme coins in that it doesn't run on its own independent blockchain instead it runs using the ethereum chain as its backbone this means that catalysts for the ethereum ecosystem especially technology improvements to that backbone can benefit shiba inu as well so to just use a simple framework we'll break this section down into two types of catalysts.

1. Publicity catalyst from more people adding money into shiba inu's tokens ecosystem .
2.Technical catalysts from changes to the ethereum backbone.

I don't want to act like i'm an expert at timing these sorts of things.

The second type of catalyst are technology catalysts both from improvements to the ethereum backbone as well as from shiba inu launching new features to draw in more interest directly and if you haven't been closely tracking shiba inu over the past few months there is some pretty interesting stuff that's coming out.

Specific changes so shiba inu runs on top of ethereum's blockchain and ethereum runs using what's known as a proof of work model the foundational core of every single crypto is the fact that a decentralized set of users can verify that every transaction on the network is legitimate by checking that every other user has the same set of transactions and no one's faking anything.

How this is actually done is a little technical but basically ethereum requires people to mine new blocks of ethereum before transactions can be added to the network , this mining is done using huge amounts of computing power and tons of expensive gpus that suck up electricity like sponges in the desert suck up water ,in fact, the whole proof of work system is intentionally set up this way to have wasted work to prevent any one individual or group from having the resources to mine more than one block in a row which would effectively allow them to fake a transaction as long as no one group controlled the majority of the computing power on the network the blockchain would remain secure.

There are a few problems with this;

It requires tons of physical computing resources which is why there was a shortage of gpus on the market for other purposes like gaming over the past few years .

It wastes massive amounts of electricity which acts as a barrier to adoption of widespread cryptos ethereum a few months ago was estimated to use more electricity than a small country and while some hardcore crypto folks might think that it's worth the trade-off you can't deny that the energy usage acts as a very real barrier to the general public adopting crypto since a lot of people do view it as an energy intensive environmental disaster.

Proof of work can make it expensive to make transactions on ethereum's network .

Ethereum was never meant to permanently stay in its current state the set of improvements formerly known as ethereum 2.0 have been in the works for more than half a decade at this point since the token was first launched one of the first upgrades that will be made to the network is to move ethereum and any tokens that run on it away from the energy intensive proof of work model and over to proof of stake where ownership in the token is used to secure it rather than work being done on the chain so as long as no one person owns the majority of ethereum tokens the network should still be secure.

I know that's oversimplified but i want to get to the important parts for shiba inu what's important for shiba inu investors is that once this happens transactions will be way faster and cheaper for shiba tokens on the network.

These improvements could offer very real benefits to shiba inu's price as investors who permanently avoided these cryptos either due to slow speed of transactions or due to environmental reasons will have all their fears addressed.

The change over to ethereum's proof of stake is currently estimated to happen at some point in 2022 and the speed improvements should appear once sharding that's starting with a d is introduced to ethereum in 2023 or 2024 but while we wait for that changeover, the shiba inu developers are working on their own improvements which could act as a catalyst for the token .

The goal of this coin will be to avoid the fate of other stable coins like terra luna which ultimately ended up collapsing back in may 2022 while providing a stable place to keep your crypto and avoid some of the volatility of a token like sheep shitoshi also announced a new rewards token called "treat" which will be given out to users of shiba inu's metaverse and the blockchain version of shiba inu's card game which is announcement.

Shiba inu is launching a card game billed as the best collectible card game on the planet and shitoshi plans to make a full announcement about this in the near future now in the current crypto market where everything is pretty much trending down or flat shiva inu's token did not react much to these announcements but if shiba inu can successfully deliver these features in a stable and reliable way it could attract more people to the ecosystem and in turn grow the price of shiba inu coin.

If you're going to invest in it so unlike a crypto like bitcoin which has a set number of tokens meaning at a certain point there will be no more bitcoin coins ever created or like dogecoin which keeps on creating more and more tokens forever.

Shiba inu is actually deflationary at least on the surface so something like dogecoin is inflationary meaning it acts kind of like a real currency that decreases in value over time shiba inu meanwhile is like dogecoin's mirror reflection where it started out with a much greater supply of tokens but every year one percent of that supply is supposed to be burned this means that all else being equal shiba inu's price would go up each year ,if no one moved new money in or pulled money out of the coin.

This one percent burn rate could go even higher if communities burn tokens in the burn portal where you'll get paid to burn some of your sheep to reduce the overall supply or from shiba swap 2.0 which is a decentralized exchange for buying and selling sheep while also providing another burn mechanism.

There are a lot of articles arguing that while this burning effect is deflationary it may not have a noticeable impact on shiba inu's overall price since the burn rate is only dropping the supply of tokens a few percent per year that gets massively outweighed by the real value driver of the token which is the meme basically how much money people dump in or pull out of the token and that's just several orders of magnitude greater than the burning itself just for reference the token returned 49 million percent in 2021, but it's done a little bit worse than that in 2022 with the crypto sell-off having it down 70.

That's a lot of volatility although admittedly its drop is only slightly worse than ethereum's year-to-date return and bitcoin's negative 60 return.

It's hard to see how much a one to two percent burn rate really factors into price swings that dramatic that being said this burning effect does exist and it does exert a small upward force on the price of shiba inu.

If you have a large number of shiba inu tokens and you're fairly confident in your crypto skills would be to stake your sheep tokens on shiba swap the official shiba decentralized exchange here you can bury your sheep tokens for six months and withdraw 33 of your rewards each week doing this you'll get paid out a 4.9 apy per year though you can get paid more by first swapping your sheet for bone or leashed coin and then staking those instead the downside.

You're locking up your tokens for at least six months which is a pretty long time for not that high of an apy but on the flip side using this method you can also stake as many tokens as you want.

Stake your tokens using a centralized exchange like binance .

We've seen other exchanges like voyager recently declare bankruptcy and a lot of people who kept their crypto with voyager aren't going to be getting that money back.

Secondly, locked binance staking is not available in the U.S and flexible staking where you can withdraw at any time and is more broadly available only pays out a 0.5 apy so in the U.S it probably makes sense to just go with the decentralized exchange and get your 4.9 percent.

It is still a very popular project and the meme seems to still be alive plus developers are continuing to make improvements to it while the ethereum blockchain itself is also being improved.

I think if you are going to invest in shiba inu you might as well get some staking rewards out of it by staking on binance.

Finally,If you're outside the U.S or using shiba swap in the U.S but the best option would be to hold a big amount of SHIB on binance," if your goal is to maximize your apy and if you do want to hold your cryptos outside of an exchange".

I hope that you found my post valuable 😊☺
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