Brad Garlinghouse - CEO of Ripple - recently said Dogecoin may not be good for the cryptocurrency market. In the context of using cryptocurrencies as a hedge against inflation, he argued that the inflationary nature of meme currency doesn't fit this picture well.
Can Doge Really Fight Inflation?
The CEO expressed his thoughts on the meme coin at a panel discussion moderated by CNBC at the Abu Dhabi Fintech event on Tuesday. Discussing the broader cryptocurrency market, he said rising inflation is creating "favorable winds" for the entire industry.
Earlier this month, the Labor Department reported annual inflation of 6,2% for the month of October. Shortly thereafter, the price of Bitcoin reached an all-time high of $ 69.
That said, Garlinghouse wondered how well Dogecoin could use this framework for their value proposition.
“I'm not actually convinced, I think somewhat controversially, that Dogecoin is good for the cryptocurrency market,” he said.
Dogecoin was launched in 2013 and developed within hours, according to its creator. Although it was created entirely as a joke based on a popular internet meme, it now ranks as the XNUMXth largest cryptocurrency by market cap. Shiba Inu, another dog-based meme token, also made it to the top spots after capitalizing on Doge's success. The popularity of both coins was largely aided by Elon Musk's tweets.
"Dogecoin has some inflationary dynamics that would make me reluctant to keep it," Garlinghouse explained. In fact, Dogecoin doesn't actually have a fixed supply like Bitcoin does, giving it a weak argument for long-term use as an inflation hedge asset.
Is XRP much better?
That said, Ripple's XRP hasn't fared much better on that front. Messari data shows that the cryptocurrency's circulating supply has increased by 20% in the last financial year after a massive sale by Ripple Labs. This created severe downward pressure on prices at that time.
Garlinghouse acknowledged that Bitcoin has "a lot of momentum" in this environment. With its limited offering of 21 million coins, many billionaires and organizations, including Bloomberg, call it an excellent hedge against inflation. More recently, a US senator even proposed using Bitcoin to stabilize the US dollar's inflationary spiral.
But where to exchange Doge and XRP? Well, you can do this on a decentralized exchange like Bitcoin Revolution. It is an ideal platform for beginners, who do not have a huge amount of capital to invest. Furthermore, it offers a lot of features and functionalities even for advanced users.
