DOGE might not be good for the crypto market according to Ripple CEO Brad Garlinghouse who said that the inflationary nature of the meme coin doesn’t fit into the picture. Let’s find out more in today’s Ripple news.
While some could argue that DOGE is a really enthusiastic aspect of the crypto market, Brad Garlinghouse doesn’t agree. Ripple’s CEO stated that DOGE might not be good for the crypto market because of its inflationary nature. The CEO commented during a CNBC-moderated panel discussion at the Fintech Abu Dhabi event and while discussing the broader market, he said that the rising inflation is creating some strong tailwinds for the entire sector.
The labor department reported a 6.2% annual inflation for October and right after that, Bitcoin’s price hit a new all-time high of $69,000. with that said, Garlinghouse questioned how well DOGE could use its nature for its own value proposition:
“I’m actually not convinced, somewhat controversially I guess, that Dogecoin is good for the crypto market.”
Dogecoin was launched in 2013 and was indeed created in a few hours according to its creator. Though created as a joke based on an internet meme, it ranks as the 10th biggest cryptocurrency by market cap. Shiba Inu as another dog-themed coin entered the top ranks following Doge’s success. The popularity of the coins was aided by Elon Musk’s comments and tweets but Garlinghouse argued that DOGE has inflationary dynamics that will make him reluctant to hold it. Dogecoin doesn’t have a fixed supply like bitcoin which is giving a weak argument for long-term use as an inflation hedge asset.
With that said, Ripple’s XRP didn’t do well much on this front. The data from Messari shows that the circulating supply of the currency increased by 20% in the past year after a huge sale from Ripple Labs. This created a strogn downward price pressure at that given time. Garlinghouse noted that bitcoin has plenty of momentum in the environment and with its supply capped at 21 million, most organizations and wealthy people are calling it a great inflation hedge. A US senator even proposed using BTC to stabilize against the dollar’s inflationary spiral.
As recently reported, Brad Garlinghouse, the Ripple CEO says the company is making some strong progress in the legal battle with the US SEC and expects a conclusion in 2022. In an interview with CNBC, Brad Garlinghouse said that the legal lawsuit against the SEC is turning in favor of Ripple however the case will not be solved by the end of 2021 because of its specifics.
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