The Shiba Inu could reach $ 1 - around 10.270 years from now

The Shiba Inu could reach $ 1 - around 10.270 years from now - shiba inu character and nutrition of the Japanese dog en 000Shiba Inu (quotation SHIB) is one of the most controversial cryptocurrencies in the market. On the one hand, in 2021 it achieved a one-time return of 43.800.000%, which would have turned the price of a cup of coffee into a million dollars with a perfectly timely investment.

On the other hand, the token has not yet gained real adoption as a payment mechanism, so it exists primarily as a vehicle for speculation. For this reason, in 2022 it suffered a loss of 69%. 

But there is an unlikely path for Shiba Inu tokens to rise from the current price of $ 0,00001 to $ 1, although it may take some time (OK, a lot). 

Feel the burn

The cryptocurrency industry faces several short-term challenges. These include increased regulation, the tightening of tax reporting requirements and the general decline in investor confidence. But a unique problem with the Shiba Inu is its huge offering.

There are currently 589,6 trillion Shiba Inu tokens in circulation, making it difficult to reach a price of 1 dollar. According to simple math, if this point were reached, Shiba Inu would have a market valuation of $ 589,6 trillion, making it the most valuable asset on Earth by a large margin. To work around this problem, developers are devising ways to burn tokens, eliminating them forever from circulation.

ShibaSwap is a burning portal designed to incentivize holders to give away some of their Shiba Inu tokens in exchange for burned SHIB tokens, which can be wagered for rewards. Additionally, the developers are building a metaverse that will serve as a virtual world for the community. Within this project, users can purchase plots of land using Ethereum (ETH -4,81%), and then they can spend Shiba Inu tokens to assign a unique name to those plots. All Shiba Inu spent in this way will automatically be burned. 

But could it work well enough to push Shiba Inu's price per token up?

Here's what the math says

At a token price of $ 0,00001, and with 589,6 trillion tokens in circulation at the moment, Shiba Inu has a total market valuation of $ 6,1 billion. 

If the Shiba Inu creates no additional value beyond that of a vehicle for speculation, then burning the tokens is the only way to get to $ 1 - and its current supply would have to drop significantly to get there. 

To be precise, the number of tokens in circulation is expected to drop from 589,6 trillion to 6,1 billion. This is a drop of 99,9998%, which basically means there would be 6,1 billion tokens priced at $ 1 each, which equates to a market valuation of $ 6,1 billion. Put simply, the overall value of Shiba Inu's market cap would not change. 

How long would it take to reduce the supply by that much? At the time of writing, 24 million Shiba Inu tokens have been burned in the past 157 hours. Although this number fluctuates, if it is assumed to remain constant every day for the sake of this thought experiment, approximately 57,4 billion tokens would be burned annually.

Therefore, it would take more than 10.270 years to burn enough tokens to reach the price of $ 1.

A lot of work, for no real gain

To reduce the supply by such a significant volume, every Shiba Inu investor would have to participate in the combustion. Each Shiba Inu holder would see their number of tokens drop by 99,9998%, and although each token is now worth $ 1, their overall position value would remain exactly the same. After all this work, the net gain is zero.

Also, this ignores the elephant in the room: No existing investor would be alive when the deal is completed. 

Furthermore, it would be extremely difficult to obtain such large participation. Since most of Shiba Inu's investors are speculators, there is little incentive for them to sell a portion of their holdings for the common good. 

The only way Shiba Inu can create real value for investors is to serve as a useful payment mechanism that businesses and consumers can easily adopt. Based on the token's track record, this seems unlikely to happen.