The chief executive of Ripple Labs is outlining his reasons for not holding the meme asset Dogecoin (DOGE).
In a new interview with CNBC, Brad Garlinghouse says that he doesn’t believe DOGE is good for the crypto markets and points to the coin’s inflationary dynamics as a primary problem.
“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.”
With inflation at the highest in years in the US, Garlinghouse says he doubts assets with built-in inflationary mechanisms will perform well as consumers search for investments that will rise in value due to their scarcity.
“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?’”
Though Dogecoin has no maximum supply of coins it can have in circulation, its production is capped at five billion new DOGE per year.
DOGE is trading hands $0.226 as of writing, a 24% decrease from its 30-day high of $0.299.
Check Price Action
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/INelson
Credit: Source link