What is SHIB?: More Utahns jumping on the cryptocurrency train

Local News

SALT LAKE CITY (ABC4) – It’s risky, it’s volatile, it has a lot of people’s attention around the world, and right here in Utah jumping on the cryptocurrency Shiba Inu.

Scrolling through your social media feeds, you’ve probably seen something about Shiba Inu or SHIB for short.

“It is something that people see as an opportunity, a buying opportunity to basically change their lives,” says Yosiah Solk with G.G.M. Investments.

Solk says he’s he knows how life-changing crypto is, adding, “Now I’m 24-years-old and I’ve been in this space for five and a half years now, and I’m a multimillionaire.”

But even he is waving the caution flag.

“Just because they see it on Twitter, and see it on YouTube, whatever Facebook, you really need to do your research before investing your hard-earned money,” he says. “It’s a craze, right you know, it is a meme token.”

“The payout can be astronomical so long as it keeps going up. When is it going to crash, its anybody’s guess?,” says Salt Lake Community College School of Business Professor Lon Schiffbauer.

He has students ask him about crypto all the time, and there are tens of thousands of them.

“Even if we say crypto will have a future in our long-term economy, which one? The vast majority of them will disappear,” says Schiffbauer. “Truth is, crypto is an economic bubble. This is a speculative bubble.”

The professor says other examples of speculative bubbles include the housing market and the internet.

Experts said SHIB shot up more than 30 percent within 24 hours Wednesday, breaking all-time highs. And that brings a lot of concern.

“We all to some degree suffer from FOMO, fear of missing out, and memes really latch on to that because they really tell you at a new level, Am I missing out on this? Am I the only person who is not investing?” says Schiffbauer. “It’s like any other investment, with reward comes risk.”

If you’re thinking about getting into investing, Schiffbauer recommends being careful with MEMES, and acknowledging cryptocurrency is volatile.

“Understand that some fool is going to be sitting there with a whole bunch of worthless nothing until this thing levels out and gets reasonable,” he says.

Advisors say there is no get rich quick scheme out there and you should talk to a financial advisor about your money and investments. Most ABC4 News spoke with say to begin with index funds.

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