Brad Garlinghouse, CEO of Ripple has recently suggested that Dogecoin might not be a good choice for the market of cryptocurrency. In relation to the use of cryptocurrency as a hedge against rising prices, Garlinghouse said that the inflationary nature of meme currency does not fit this scenario well.
Can Doge Really Fight Inflation?
The CEO shared his views regarding the meme coin in the panel discussion that was hosted by CNBC at the Abu Dhabi Fintech event on Tuesday. In discussing the wider market for cryptocurrency, he noted that the rising rate of inflation has created “favorable winds” for the entire sector.
In the month preceding it was reported that in the beginning of October, Labor Department reported annual inflation of 6,2 percent for October. Then, shortly after, the cost of Bitcoin hit a record highest of $69.
However, Garlinghouse wondered how well Dogecoin could make use of this model to support their business model.
“I’m not actually convinced, I think somewhat controversially, that Dogecoin is good for the cryptocurrency market,” He said.
“Dogecoin has some inflationary dynamics that would make me reluctant to keep it,” Garlinghouse explained. Actually, Dogecoin doesn’t actually have an unrestricted supply as Bitcoin does, which makes an argument that is weak for the long-term use of an asset to hedge against inflation.
Is XRP much better?
However, Ripple’s XRP hasn’t done significantly better on this score. Messari’s information shows that the circulating supply of the cryptocurrency has grown by 20% during the past year, following massive sales of the company Ripple Labs. This caused a significant price pressure that was downward at the moment.
Garlinghouse admitted that Bitcoin is gaining “a lot of momentum” in this current climate. Because of its limited offerings of 21 million coins, several billionaires and other organizations like Bloomberg are claiming it is an effective hedge against rising inflation. In the past, a US senator proposed the use of Bitcoin to help stabilize the US dollar’s rising inflation.
Where can you change Doge or XRP? You can make this happen through a decentralized exchange such as Bitcoin Revolution. It’s a great platform for people who are new to the market and do not have a massive amount of money to invest. In addition, it has many functions and features even for more advanced users.