Like the craze for electric vehicles, I can appreciate why so many people are gravitating toward the metaverse. Essentially the next generation of connectivity, the metaverse enables our personalities to be uploaded into the internet, facilitating profound interactions across a borderless digital ecosystem. So, it’s only natural that the Shiba Inu (SHIB-USD) community follow suit.
Previously labeled as a pup coin — the name Shiba Inu refers to a popular Japanese dog breed — SHIB didn’t really seem to be much more than a speculative bet in the vast blockchain universe. Even the description of the token caused multiple red flags to pop up.
“Once upon a time, there was a very special dog. That dog was a Shiba Inu, and this dog inspired millions of people around the world to invest money into tokens with the dog’s image on it.”
Come on. This isn’t something to be taken seriously, right? Well, a meteoric explosion of market value since SHIB’s debut has silenced doubters; it hovers just above $13.9 billion over this three-day weekend. And now, the community backing the canine-inspired meme is diving headfirst into the metaverse.
And it’s not participation for participation’s sake, from what I can gather. Not too long ago, SHIB’s developers announced that they will be selling or auctioning digital plots of land called Shiba Lands — of course that’s what they’re called! — in the project’s own metaverse platform.
It’s here where I must admit that the metaverse concept loses me. If I want to connect with someone, I’ll call them. But there’s no way I’m going to strap on a virtual reality headset just so I can meet “in person” but digitally.
Still, it’s big business, with wealthy entities paying millions for digital land. It all seemed plausible until the Russians showed up.
Shiba Inu Could Learn a Harsh Lesson
Though Ukraine is thousands of miles away from us Americans, it may very well be the epicenter of the next major global conflict. Per The Week, tensions between the U.S. and Russia — which allegedly seeks to invade its neighbor over broader security concerns — have taken their darkest turn yet.
If Russian President Vladimir Putin gives the green light to invade Ukraine, the U.S. would have zero choice to respond severely. Personally, I believe in such a scenario that American forces will somehow or another direct engage with Russian troops. It’s not so much about Ukraine as it is the credibility of the U.S. at stake.
Should Ukraine fall, Taiwan wouldn’t be too far behind because why not? If the U.S. demonstrates weakness, then the Chinese will also do what they want. Although it’s a low-level concern, should tensions escalate into armed conflict, then Shiba Inu will learn a very tough lesson.
And that would be this: decentralization doesn’t mean squat if world powers destroy the stability of centralized institutions that give decentralized protocols their power to begin with. In the most extreme sense, Putin holds a gun to the head of developed nations whose citizenry can afford such frivolous pursuits like investing in Shiba Inu.
Yes, you can decentralize yourself through a virtual environment. However, with one pull of the trigger, it’ll be game over for the user, both in the digital world and the real one.
Stated differently, I appreciate that Shiba Inu developers are attempting to build new paradigms in the metaverse. But to enjoy this digital ecosystem, users have to be healthy, both physically and financially. For some people, Putin threatens both aspects.
But make no mistake about it — we Americans aren’t completely safe, either.
Real Land Trumps Digital
If there’s another lesson to be had about Russian belligerence and its impact toward Shiba Inu, it’s this: real land trumps digital land. I don’t need to explain myself at length. Simply, real land is a limited attribute whereas its digital counterpart is theoretically limitless.
Look, if Putin thought the metaverse was going to amount to something, why, he could just craft a bunch of digital Ukraines and annex them one by one. But to him, it’s probably all nonsense. He knows that the real power comes from exploiting real people and real territory.
Perhaps most alarming of all, when Putin roars, the markets shake. The same cannot be said about whatever happens in the Shiba Inu ecosystem. Therefore, think carefully before participating at this juncture.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
