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.
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