Ripple CEO says Dogecoin isn’t good for the crypto market

According to a Tuesday report by CNBC, Ripple Chief Executive Officer Brad Garlinghouse took a jab at Dogecoin at his recent appearance at the Fintech Abu Dhabi event.

Garlinghouse feels DOGE is detrimental to the bitcoin market as a result of its supposed “inflationary dynamics” and limitless supply.

He stated that hyperinflation is producing “tailwinds” for bitcoin and the cryptocurrency sector, but issued a cautionary note to those following the meme token.

The former Yahoo CEO said the Bitcoin parody, inspired by the Shiba Inu meme and which was started in 2013 as a joke and acquired popular adoption in 2021, will harm the bitcoin business.

Not a fan of Doge

“I’m honestly not convinced, rather controversially, that Dogecoin is beneficial to the cryptocurrency market,” he explained.

Garlinghouse observed that Dogecoin has no hard limits on the total number of coins in circulation, in contrast to certain prominent cryptocurrencies such as Bitcoin, which is limited to 21 million units.

“It started as a joke, but gained traction thanks to some high-profile individuals like Elon Musk,” Garlinghouse noted.

Garlinghouse, despite his reservations about DOGE, is positive about the cryptocurrency sector in general.

One of the most successful cryptos

The digital currency’s supply cap was initially set at 100 billion coins, which it reached in mid-2015. Since then, Dogecoin has been turned to an unlimited supply with a reward cap of 10,000 DOGE per block to contain inflation.

DOGE has established itself as one of the most successful cryptocurrencies this year, having recently entered the top 10 largest cryptocurrencies by market capitalization.

DOGE is currently the tenth most valuable digital currency, trading at $0.22, a gain of almost 6,000% over the last year.

Much of Dogecoin’s success appears to be due to Tesla chief executive Elon Musk’s backing, who started actively promoting DOGE on Twitter early last year.

 

Image courtesy of Cointelegraph News/YouTube

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