Shiba Inu Coin (CRYPTO: SHIB) isn’t as popular as it once was. Last year, it became a fad after it rallied several million percent due to its similarity to Dogecoin. Dogecoin itself got popular due to Elon Musk’s incessant tweeting about it, which got the billionaire’s followers buying in massive volume.
Today, Shiba Inu Coin is losing ground. It is down for the year, and, unlike Dogecoin, doesn’t have Elon Musk tweets to occasionally revive interest.
That hasn’t stopped SHIB from acquiring a cult following though. Many people still hold SHIB today, and some even hold out hope that it will reach one very specific target: US$1.
At US$1, Shiba Inu Coin would make many of today’s holders very wealthy. However, its market cap would also exceed the value of all the net wealth on planet earth. In this article, I will explore whether SHIB could come to be worth more than all of the earth’s assets, net of debt, ultimately concluding that it can’t.
How much SHIB would be worth at US$1
There are currently 549 trillion Shiba Inu Coin in circulation. This means that if SHIB hit US$1, its market capitalization would be US$549 trillion. That’s a lot of wealth concentrated in one coin. For context, the highest market cap Bitcoin ever achieved was $1 trillion, and Apple’s highest market cap ever was US$3 trillion. The total value of all the gold in the world is approximately US$14 trillion. So, if Shiba Inu Coin went to US$1, it would be far and away the most valuable asset in the world. Not only that, but it would be worth more than all of the world’s assets, net of debt!
Value of all wealth worldwide
According to research by McKinsey, all of the world’s assets are collectively worth approximately US$1,540 trillion, or US$1.54 quadrillion. Shiba Inu Coin at US$1 would be worth about a third of that. That’s already a steep valuation. But it gets even weirder. The same McKinsey study that says all global assets are worth US$1.54 quadrillion quotes US$500 trillion in net worth after liabilities. So, Shiba Inu Coin would be worth more than the wealth on planet earth’s balance sheet if it went to US$1.
Foolish takeaway
Having reviewed all relevant factors, we can safely conclude that, no, Shiba Inu Coin won’t go to US$1. At that price level, it would be worth more than all of the world’s private and public wealth combined.
Theoretically, an asset could reach a valuation greater than the world’s money supply, because the whole market cap does not exchange hands in one day. If, on a given day, one million SHIB were traded for US$1, and that was all of that day’s trading volume, it would only take US$1 million for financial data platforms to start claiming SHIB had a US$549 trillion market cap. However, the effect would be short lived.
Over a long enough period of time, more SHIB would need to exchange hands for the market cap to be sustained. So, absent some hyperinflation scenario where the money supply explodes overnight, SHIB isn’t going to US$549 trillion.
