Shiba Inu can be like a wild banknote which is not a terrible thing

Recently, one of the major news specific to shiba inus (CCC:SHIB-USD) is that the underlying team has released a beta version of its Decentralized Autonomous Organization (DAO) with the aim of giving SHIB users more control over projects and cryptocurrency pairs on the ShibaSwap platform.

Source: Maria Shipakina /

My purpose in mentioning this is not to get into a discussion of DAOs, which Cooper Turley, an expert on the subject, describes as “an Internet community with a shared bank account.”

Instead, I’d like to address a much more fundamental point: Shiba Inu, as his creative team mentioned, is not just a coin.

The community is legitimately trying to build an ecosystem around SHIB tokens. For many, it dates back to the day the United States had its own proliferation of private currencies, with the most offensive variety being labeled as wild banknotes.

Although the sources I used to draw comparisons between cryptos like Shiba Inu with private notes from that era seemed to suggest that decentralized currencies lead to failures, I recently found other sources that argue with vehemently to this characterization.

Some go even further, offering a rather diametrically opposed point of view.

Perhaps the most believable of this overhaul of private or wild notes comes courtesy of Lawrence H. White, senior fellow at the Cato Institute and professor of economics at George Mason University since 2009. White has provided evidence that in the United States and across the globe, private currencies have instead to success mandate.

Notably, White mentioned that Canada had a loosely regulated banking system until 1935, when the country established a central bank. Until then, Canadian banks have remained strong despite various economic turmoil, including the paradigm-shifting Great Depression.

Can SHIB and other cryptos provide a modern equivalent?

Shiba Inu is not 100% speculative but maybe quite close

Citing the work of economic historian Kevin Dowd, White mentioned that the purportedly truthful record of most historical free banking systems was “considered reasonably successful, sometimes quite remarkably”.

Additionally, White wrote the following:

Specifically, [Dowd] notes that they “were not subject to inflation”, have shown no signs of natural monopoly and have stimulated economic growth by ensuring efficient payment practices and intermediation between savers and borrowers. These plural note systems emit that were prone to panic, like those in the United States before 1913 and England before 1832, were so not because of competition but because of legal restrictions which greatly weakened the banks.

In this setting, which White says is the exact image of the so-called wild bank, it seems Shiba Inu may benefit from historical precedent, for lack of a better phrase. It appears then in the analog age as today in the digital age that people prefer to offer “efficiency in payment practices and in the intermediation between savers and borrowers”.

If that’s honestly the case, then maybe – just maybe – Shiba Inu could survive and thrive as a digital asset and ecosystem. And if not SHIB, certainly other big name cryptos.

However, I still believe that people should exercise extreme caution with Shiba Inu and all other virtual currencies. While I may have to concede some points from my earlier arguments – given these revelations I was unaware of earlier – I remain troubled by the idea of ​​investing too heavily in decentralized protocols.

It is almost certain that the successful wildcards featured stable and mutually acceptable valuations at face value. But when valuations can fluctuate at a magnitude of 50X, such volatility inherent in many speculative cryptos does not seem encouraging for long-term viability.

The debate is not quite over

Among critics of the comparison of Shiba Inu with wild banknotes, George Selgin, senior fellow and director emeritus of the Center for Monetary and Financial Alternatives at the Cato Institute and professor emeritus of economics at the University of Georgia, seems be the most upset.

Among other claims, Selgin claims that scandalous wild-banking stories are exaggerated. If that’s really the case, he has every right to be upset.

The problem for me is that if the wild banking system wasn’t so damaging to the American monetary system – or if it was a positive experience to go to the other end – these “contrarian” researchers have a serious battle to climb.

For example, the official Nebraska government website notes how wildcards “issued by certain Nebraska territorial banks have caused considerable financial instability.” It’s possible that the pro-wild researchers (my term, not theirs) are absolutely right. However, I am going to have a hard time contradicting the statements of a state government.

At this point, I think the one thing we can universally agree on is that when it comes to studying history to determine the future trajectory of risky investments like Shiba Inu, due diligence careful is non-negotiable.

I presented both sides of the argument. The rest is up to you.

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Read more: How to Avoid Popular Cryptocurrency Scams

As of the date of publication, Josh Enomoto had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to Publication guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto helped negotiate major contracts with Fortune Global 500 companies. Over the past several years, he has provided critical and unique insights to investment markets, as well as various other industries including law, construction management and healthcare.

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