Ripple’s CEO isn’t a fan meme-based digital currency Dogecoin.
Brad Garlinghouse believes DOGE is bad for cryptocurrency markets due to its “inflationary dynamics”, and unrestricted supply.
Garlinghouse, a CNBC-moderated panelist at the Fintech Abu Dhabi event, stated that global inflation is pushing Bitcoin’s (BTC), price higher. However, it has a warning to Dogecoin enthusiasts.
“I am not convinced, perhaps controversially, that Dogecoin will be a good choice for the crypto market. Ripple CEO, Ripple, stated that Dogecoin’s inflationary dynamics would make it difficult for him to hold it.
Garlinghouse pointed out that Dogecoin does not have a hard limit on the amount of coins that can be circulated. This is very different to other major cryptocurrencies like Bitcoin which has a cap at 21 million coins.
Garlinghouse said, “It was originally built as a joke. Then it gained some momentum from high-profile individuals like Elon Musk.”
Garlinghouse remains optimistic about cryptocurrency markets in general, despite being skeptical about DOGE.
Apart from my personal opinions on dogecoin, I believe there will be many winners within this industry. Overall crypto momentum is my top priority for 2022, assuming regulatory clarity and progress in Japan, the UAE, Singapore, UAE and Japan. 2/2 https://t.co/D42UX3dm4m
— Brad Garlinghouse (@bgarlinghouse), November 23, 2021
Dogecoin, a cryptocurrency that is based on the Shiba Inu meme was created as a joke in 2013. The initial supply limit for the digital currency was 100 billion coins. It reached its mid-2015 cap in mid 2015. Dogecoin has been changed to allow an unlimited supply and a limit of 10,000 DOGE per block in order to control inflation.
DOGE is one of the most popular cryptocurrencies of 2021. It was included in the list of top 10 largest cryptocurrencies according to market capitalization earlier in the year. DOGE currently trades at $0.22 and is up more than 6,000% in the last year.
Dogecoin’s success is likely due to Tesla CEO Elon Musk’s endorsement. Musk started tweeting about DOGE in 2020.
Dogecoin all-time price chart. Source: CoinGecko
Related: Tesla suggests it might soon resume support crypto payments
Musk continues to tweet a lot about DOGE lately, raising Dogecoin’s withdrawal issues on Binance directly with Changpeng Zhao, the exchange CEO. Binance claims that the issue is due to a technical issue in the recent upgrade, which caused transactions from the past to be sent to 1,674 users.
The CEO stated that Binance is not something he uses, despite having tried it once. “But signing up was too complicated to jump through.”
I am a technology and gaming writer by profession. I love NFT’s and play to earn gaming such as Axie Infinity. I love writing about anything on the blockchain, especially gaming and entertainment. I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.