Ripple CEO Reluctant To Hold Dogecoin Due To 'Inflationary Dynamics'

Brad Garlinghouse, the CEO of Ripple Labs, isn’t a believer in the now widely circulated opinion that Dogecoin DOGE/USD is actually good for the crypto market.

What Happened: In an interview with CNBC on Tuesday, Garlinghouse said: “I’m actually not convinced, somewhat controversially I guess, that Dogecoin is good for the crypto market.”

“Dogecoin has some inflationary dynamics itself that would make me reluctant to hold it,” he said. 

Unlike cryptocurrencies like Bitcoin BTC/USD, which have a hard-capped maximum supply of 21 million coins, Dogecoin has no limitations on its supply.

When the coin was programmed into existence in 2015, it had an inflation rate of 5%, which subsequently reduced to 3.25%. At the time of writing, there were 132 billion tokens in circulation.

Garlinghouse, who heads Ripple, the company behind the cryptocurrency XRP XRP/USD, said Dogecoin was built “as a joke” and gained momentum after being endorsed by high-profile people like Tesla Inc TSLA CEO Elon Musk.

“When people are concerned about holding a fiat currency that might be inflating, and that’s devaluing, they’re looking at: ‘How can I hold other assets that won’t have that same inflationary dynamic?’” said Garglinghouse.

“My personal views on Dogecoin aside … I think there will be many winners in this industry. I’m bullish on overall crypto momentum for 2022,” he added in a tweet later in the day.

DOGE Price Action: At press time, DOGE was trading at $0.2176, down 2.38% in the last 24 hours.

Photo by Executium on Unsplash.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CryptocurrencyNewsMarketsMedia
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!