Of course, most of the merchants accepting SHIB as a form of payment are crypto-services related. However, it is worth noting that you can technically pay any merchant with $SHIB, thanks to payment gateway services.
So far, there has been no large company or entity that accepts Shiba Inu as a form of payment. SHIB is trying to market itself as “the People’s crypto”, and even has a Reddit community [r/SHIBArmy] of around 433k members supporting the growth of the token. Although SHIB’s popularity has been growing, it is lacking on the utility side.
SHIB is still not as widely accepted as $DOGE or $BTC for a means of payment, and there are many reasons for this. First of all, SHIB is an ERC-20 token living on the Ethereum blockchain. This means that transferring SHIB from one wallet to another can cost a hefty gas fee. As of writing this article, sending ERC-20 tokens between two costs $40 on average. These high fees are unsustainable for most day to day purchases, meaning that paying in SHIB might only make sense for extremely large purchases. DOGE has much lower transaction fees, only a couple of pennies per wallet transfer. Yes, BTC also has high transaction fees, but BTC has consistently been the largest crypto asset by market cap, and is in general only used as a means of payment for extremely large purchases.
However, this does not mean that all hope is lost for using $SHIB as a solid means of payment in the future. Thanks to many scaling solutions on the Ethereum blockchain, such as Optimistic rollups, ZK rollups, layer-2 solutions such as Polygon ($MATIC) and Loopring ($LRC), there are many ways to reduce the gas fees required to transfer SHIB from one wallet to another. Also, of course there is the long-awaited release of ETH2.0 coming out hopefully before the end of 2021, and ETH2.0 promises to solve a large chunk of the gas fees issue. All of this could help SHIB become a truly viable method of payment for many merchants and transactions.
So, what is the future of SHIB? Just like DOGE, the future of a meme coin is unclear, and incredibly risky. However, thanks to the Reddit large SHIB army, and great social media sentiment for the coin, SHIB is probably going to remain on the top of the news for a while. As of writing this article, it has a market cap of $29B, making it the world’s 12th largest crypto asset by market cap. Its supply is also hard-capped at 1 Quadrillion, unlike DOGE which has a supply which is ever-increasing. For SHIB to double from here, we would need roughly $21B extra. Therefore, it is a lot tougher to double the price of SHIB now, compared to before. Yes, there are stories of people turning $8000 into millions thanks to SHIB, but those are rare exceptions to the rule. Before any investment or trade, understand what you are investing in, and make sure to have a clear entry and exit plan. This strategy tends to be more consistent in delivering great gains for your portfolio. Therefore, please do your own research before investing into $SHIB!
*We have not performed due diligence of any companies mentioned in this article and readers are encouraged to perform their own review.