August 9, 2022

Dogecoin (DOGE) Is Not Good For The Crypto Market, Says Ripple CEO

2 min read

Brad Garlinghouse– CEO of Ripple– just recently stated that Dogecoin may not be good for the crypto market. In the context of utilizing cryptocurrencies as an inflation hedge, he stated that the meme coin’s inflationary nature doesn’t fit well into that picture.

Can Doge Really Fight Inflation?

The CEO aired his thoughts on the meme coin in a CNBC-moderated panel discussion at the Fintech Abu Dhabi occasion on Tuesday. While going over the broader cryptocurrency market, he said that increasing inflation is developing “tailwinds” for the entire sector.

Previously this month, the labor department reported a 6.2% annual inflation for the month of October. Quickly afterward, Bitcoin’s cost shot to an all-time high of $69K.

That stated, Garlinghouse questioned how well Dogecoin could utilize this structure for its own value proposition.

“I’m in fact not convinced, somewhat controversially I think, that Dogecoin is good for the crypto market,” he stated.

Brad Garlinghouse.

Brad Garlinghouse. Source: CNBC Dogecoin was introduced in 2013 and established in hours, according to its creator. Though developed entirely as a joke based on a popular internet meme, it now ranks as the 10th largest cryptocurrency by market cap. Shiba Inu– another dog-based meme token– has actually likewise entered the top ranks after taking advantage of Doge’s success. The popularity of both coins has actually been mainly assisted by Elon Musk’s tweets.

“Dogecoin has some inflationary dynamics itself that would make me reluctant to hold it,” Garlinghouse described. Indeed, Dogecoin does not in fact have a fixed supply the way Bitcoin does, giving it a weak argument for long-lasting use as an inflation hedge property.

Is XRP Much Better?

That stated, Ripple’s XRP hasn’t been far better on this front. Data from Messari reveals that the cryptocurrency’s distributing supply increased by 20% over the last fiscal year after an enormous sale from Ripple Labs. This developed strong downward cost pressure at the time.

Garlinghouse acknowledged that Bitcoin has “a lot of momentum” in this environment. With its supply capped at 21 million coins, many billionaires and organizations, including Bloomberg, are calling it an excellent inflation hedge. More just recently, an US senator even proposed utilizing Bitcoin to stabilize the US dollar’s inflationary spiral.

Featured Image Courtesy of Fortune