With the appearance of Dogecoin in 2013, also appeared the fever for dog-based meme coins. Thanks to the support of some celebrities, this coin – that started as a joke – became quite popular in the crypto world, so it wouldn’t be long before some other project emerged looking to compete with it.
This is the case of Shiba Inu, a meme coin that was born with the objective of taking advantage of the excellent momentum that Doge was going through, effectively getting its price to rise like foam for some time, something that provided huge benefits to many investors who knew how to take advantage of that moment, becoming instant millionaires.
For this reason, many investors and enthusiasts in the crypto world watch Shiba Inu closely in the hope that this cryptocurrency will return to the glory it had some time ago. After all, at its current market price, it is an asset that almost anyone can buy.
But, can Shiba Inu make you rich, and is Shiba Inu halal?
The short answer is, if we are defining rich as $1 million, then it is highly unlikely to become an instant millionaire because the market price of SHIB would have to increase significantly to turn a small investment of $1,000 into a million. Maybe it can make you some profit, but rich? That may be a challenge, and yes, Shiba Inu is halal.
In this post, I’m going to explain in more depth why it may be a challenge to become rich with Shiba Inu and also why it is viewed as a cryptocurrency that is halal, but first, let’s start at the beginning.
What is Shiba Inu?
Shiba Inu (SHIB) is a meme-inspired cryptocurrency developed by a group of people under the pseudonym of “RYOSHI” that runs on the Ethereum network – it’s an ERC-20 token. This cryptocurrency was launched to the public in August 2020 in a very particular way; 50% of the total supply of 1 quadrillion, was sent to Vitalik Buterin, the Ethereum founder. While the other 50% remained on the Uniswap exchange.
Shiba Inu is a cryptocurrency that, according to its developers, was born with a total focus on decentralization; that’s the reason why it didn’t receive any type of initial financing, nor does it have any type of entity that directs its steps; its evolution is in the hands of the community.
Currently, there are a total of 394.79 trillion tokens of this asset in circulation, with a good number moving between exchanges and user wallets, and the coin is already ranking among the 20 most popular cryptocurrencies at this time this blog post was published.
In addition to this, the Shiba Inu community is already building a decentralized exchange called ShibaSwap to compete against the big players in the sector and be able to give this cryptocurrency the place it deserves in the market.
Can Shiba Inu make you a millionaire?
If you had invested approximately $600 around March 8, 2021, when the price of SHIB was hovering around $0.00000002 then you would have acquired 30 billion Shiba Inu. This would mean that on October 25th, 2021, the value of your $600 investment would equate to approximately $1,150,000.
So yes, it was possible to become a millionaire by investing in Shiba Inu back in early 2021. But what about now?
Now, it is way more difficult. One can invest the same $600 and possibly make some profits, but to become a millionaire or rich, that can be a challenge.
A $600 investment in Shiba Inu at the time of writing this blog post, with the price hovering around 0.000038 per SHIB, would give you approximately 15,978,266 SHIB tokens; a far cry from the 30 billion you would have received back in March of 2021.
So, in order for your $600 investment to become 1 million USD, with the current price of Shiba Inu around 0.000038, this would mean that the price of Shiba Inu would have to increase to a market price higher than 0.06000000. This is staggering! Unless there are plans to burn a significant amount of SHIB, then the likelihood of Shiba Inu reaching this price is not only unknown but highly speculative.
But what are some price prediction points for Shiba Inu? And if you cannot become a millionaire, can you still make some profits?
What the analysts say
According to Wallet Investor, Shiba Inu could continue to increase its price gradually and by the end of 2026, it could reach a price of $0.00006 and even of $0.0004. Some analysis indicates that the sentiment of traders regarding Shiba Inu is strong, which combined with the predictions of different experts, suggests that the price of the SHIB token will continue to rise in the near future.
Yet, on the other hand, some analysts offer a more negative view of Shiba Inu, noting that the success of this coin is mainly due to people associating it with Dogecoin.
The problem is that none of these assets offers anything truly new in the cryptocurrency market, blockchain technology, or the world of finance; they aren’t like Bitcoin – the first cryptocurrency and largest store of value – or Ethereum with its smart contracts – but they’re totally driven by speculation and a single comment on social networks is enough to alter their price.
Price analysis and prediction sites like CryptocurrencyPricePrediction.com don’t even expect the value of SHIB to come close to $1. In fact, their analysis indicates that it may go as high as $0.0043159 by 2030 – this price changes periodically on the website so the number you see on this blog post may be different than on the Cryptocurrency Price Prediction website.
In other words, pessimistic analyzes indicate that Shiba Inu will sooner or later stop convincing investors. This is mainly due to the fact that Shiba Inu has no real value yet, so relying on long-term price predictions would be quite risky. Also, having very little time on the market doesn’t help in terms of the amount of information needed to generate accurate estimates.
Still, there is a possibility that Shiba Inu could get a huge sudden hit before totally losing its value.
UPDATE: In November of 2021 it was announced that the developers of Shiba Inu have partnered with former Vice President of Activision, David Volk, to develop a Shiba Inu NFT game and this has moved the price of SHIB upwards. If Shiba Inu can be a coin that has utility, then this will most likely lead to SHIB increasing in value.
Some factors to consider
Different experts and investors point out some factors that can influence the price of Shiba Inu and that those interested in this cryptocurrency should watch carefully.
Fear of missing out (FOMO)
When Shiba Inu hit the market in early 2020, no one showed interest in it. It held for a few months with minimal price and trade volumes, until suddenly its price started to rise and rise significantly. This ended up attracting the attention of many speculative investors who cannot bear to miss out on anything, a factor that will continue to influence the price in the future.
Comments from influencers
Some celebrities like Elon Musk have had an important influence on the upward or downward trend of some crypto assets. A comment from him on Twitter in May 2020 served to skyrocket the price of SHIB, putting it at $ 0.0000388 for a few days, and this could be happening again.
We already know that Shiba Inu was inspired by and to stand up to Dogecoin. This means that anything that affects this latest cryptocurrency will end up affecting Shiba Inu prices in one way or another.
Shiba Inu vs Dogecoin
Although Shiba Inu and Dogecoin are very similar cryptocurrencies, there are some factors that can make a difference.
In terms of tokenomics, Dogecoin has an unlimited supply of units, which is an important factor in keeping the price of this cryptocurrency low.
On the other hand, Shiba Inu has a limit on the number of tokens issued to no more than 1 quadrillion, something quite high compared to most cryptocurrencies on the market.
Although theoretically, neither of the two are scarce, it’s important to remember that half of the SHIB supply was in the possession of Vitalik Buterin, who decided to burn 90% of these tokens, something that could influence the value of SHIB in the future.
Also, although Dogecoin has been on the market longer, has a higher market capitalization than SHIB, has a larger and better-established user base, and can be used to purchase goods and services, DOGE crypto largely serves as a digital medium to exchange value, without offering anything else.
On the other hand, Shiba Inu has ShibaSwap, the decentralized exchange (DEX) that will not only allow users to get more out of their SHIB tokens by being able to carry out purchase, sale, and exchange operations with greater ease and agility but will also allow them to generate additional profits by staking on their platform.
If ShibaSwap is successful, it could end up making Dogecoin a useless or unnecessary meme coin, increasing Shiba’s market capitalization.
Is Shiba Inu halal?
Is Shiba Inu halal? Scholars who share the general opinion that cryptocurrency is permissible would hold the opinion that Shiba Inu is halal because it can be regarded as “mal” (property), has permissibility according to the sharia, and does not violate the objectives of the sharia. Scholars would primarily classify Shiba Inu as an asset. There may come a time where it will be equally used as a currency and also classified as such, but for now, it would primarily be viewed as a digital asset.
It is also important to remember that ShibaSwap is different than the SHIB crypto. ShibaSwap is a DEX and SHIB is a crypto token so even if ShibaSwap is used for purposes that would most likely be considered haram – such as becoming a lending platform where lenders earn interest off of loaning out their crypto – then this does not mean that the SHIB crypto token is haram. The token is halal and how you use it will either be halal, haram, or makruh.
Should you invest in Shiba Inu?
That will depend on your financial standing, how much capital you have available to invest, your knowledge of what you are investing in, your financial obligations and responsibilities, and your tolerance for risk. Remember, Shiba Inu is a very new project in the market and although it has received a lot of attention from the media and has experienced some moments of glory, it’s still a risky asset.
A certain amount of risk is natural and permissible in Islam when investing, but wild speculation with no knowledge of what you are investing in, or unreal expectations of profit, or over-leveraging yourself is not a proper Islamic approach to investing.
So again we ask the question, can Shiba Inu make you rich? I don’t see someone investing $1,000 and becoming a millionaire – and of course, I could always be wrong – but even if you may not become rich, I do believe that investors can make some profit, especially if Shiba Inu continues to evolve and the coin gains more utility and functionality.
These are exciting times in crypto and it can be easy to get carried away with thoughts of enormous profits.
If you choose to invest, then be realistic with your expectations and be careful and cautious about people telling you that Shiba Inu will hit $1 or even $0.01. Investing in Shiba Inu is high risk, and in the end, Allah knows best.
PLEASE KINDLY SHARE THIS ARTICLE IF YOU’VE FOUND BENEFIT IN IT