Brad Garlinghouse, the Chief Executive Officer of Ripple, the US-based cross-border payment firm, has recently stated the reasons for not holding the popular token created out of meme, Dogecoin (DOGE).
In a new interview with CNBC, Garlinghouse said he does not believe Dogecoin (DOGE) is good for the crypto markets, pointing out that the cryptocurrency’s major problem is its inflationary dynamics.
Considering the fact that inflation is at the highest in years in the United States, Ripple CEO said he doubts assets with built-in inflationary mechanisms will perform well as investors seek assets that will rise in value due to their scarcity.
“I’m actually not convinced, somewhat controversially I guess, that Dogecoin is good for the crypto market. It was built as a joke, then it got some momentum from some high-profile people like Elon Musk… Dogecoin has some inflationary dynamics itself that would make me reluctant to hold it…
“We’re seeing inflation that we haven’t seen in decades. 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?’”
Dogecoin (DOGE) Has No Maximum Supply
The number 1 meme token, Dogecoin (DOGE), has no maximum supply of coins it can have in circulation, which is where Garlinghouse said its problem lies. However, it’s worth noting that its yearly production is capped at 5 billion coins.
At the time of filing this report, Dogecoin (DOGE) is trading at $0.22, a relatively 24% drop from its 30-day high of $0.29.