The world of cryptocurrencies is moving according to crazy expectations and assumptions. But one of the most interesting hypotheses at the moment revolves around SHIB, a meme currency. If SHIB maintains its close correlation with Bitcoin, the coin could rise by more than 5,000%. But how realistic is this scenario given VanEck’s latest predictions for Bitcoin?
VanEck Bitcoin Predictions: A Bold Vision for 2050
Popular asset manager VanEck, known for its $108 billion Bitcoin ETFs and assets under management, recently published an optimistic forecast. VanEck estimates that Bitcoin could reach a market capitalization of $61 trillion by 2050.
This forecast is based on the assumption that Bitcoin handles 10% of international payments and that central banks hold 2.5% of their Bitcoin assets. In such a scenario, one bitcoin would rise to $2.9 million.
Chiba Inu and its close association with Bitcoin
One of the most interesting features of Chiba Inu is its price’s close correlation with Bitcoin. Data from IntoTheBlock shows that Shiba Inu has had an 85% correlation to Bitcoin over the past thirty days. If Bitcoin does indeed reach the increase predicted by VanEck by 5600%, Shiba Inu may also rise proportionately.
Potential growth of Shiba Inu
If Shiba Inu maintains this correlation, the coin could reach a market capitalization of $436.05 billion, pushing the price to an all-time high of less than $0.00074. That would be a significant increase of more than 5,000% over the current price level, according to Lily Gemma of TheCryptoBasic.
While these predictions are appealing, there is reason to be cautious. The assumption that Bitcoin handles 10% of global payments and that central banks hold 2.5% of their Bitcoin assets at the moment seems very optimistic. Cryptocurrencies are known for their volatility and regulatory uncertainty. Bitcoin transactions are also slow and expensive, which means that XRP, developed for payment transactions, will have a much better chance of playing a bigger role in international payments.
Challenges facing Chiba Inu
While these predictions may seem attractive, there is reason for caution. The assumption that Bitcoin will make up 10% of global payments and that central banks will hold 2.5% of their BTC assets seems very optimistic at the moment. Cryptocurrencies are known for their volatility and regulatory uncertainty. In addition, bitcoin transactions are slow and expensive, so Ripple XRP, which was developed for payments, will have a much better chance of playing a bigger role in international payments.
Realistic price forecast: $0.01 and $1
While some enthusiasts expect even a SHIB price of $0.01 or even $1, these goals are difficult to achieve given the practical market dynamics. With a current supply of more than 589 trillion SHIB coins, the price of $1 would generate a greater market value than the global wealth of $454 trillion. Thus, such assessments not only seem unrealistic, but simply impossible.
The bottom line
The correlation between Shiba Inu and Bitcoin opens up interesting opportunities, but forecasts should be critically scrutinized. While a significant rise in SHIB cannot be ruled out, there are still many variables and uncertainties. Investors should therefore keep an eye on both upward scenarios and real-life challenges.
Only time will determine whether Shiba Inu stock will really rise or remain trapped in the current range. However, one thing is certain: the SHIB stock journey is still exciting and full of surprises.
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