Dogecoin is arguably one of the world’s most popular – and most successful cryptocurrencies – in the world. Starting out as a joke roughly eight years ago, the currency has been established as one of the leading digital assets of today. It has a market cap of more than $1 billion and has garnered attention from the likes of Elon Musk and Mark Cuban.
Dogecoin Has Gained a Lot of Fans… Except One
Clearly, it’s a popular coin and everyone seems to like it… Everyone except Brad Garlinghouse, the CEO of Ripple. In a recent interview, he stated that the asset was not good in the long run when it came to the expansion of the crypto space. He mentioned:
I’m actually not convinced, somewhat controversially I guess, that Dogecoin is good for the crypto market. Dogecoin has some inflationary dynamics itself that would make me reluctant to hold it.
It’s interesting that these words are coming from Garlinghouse, who’s coin XRP was ultimately outdone by Dogecoin at one point. Doge eventually rose so high early this year that it became the world’s fourth largest cryptocurrency by market cap and beat out XRP, though now, things have calmed down a bit.
Still, it would be wrong to assume that the asset hasn’t done well. Elon Musk – the South African entrepreneur behind billion-dollar companies such as Tesla and SpaceX – recently referred to Dogecoin as “the people’s currency.” There was also a time when he was in line to serve as the new CEO of Doge, though that turned out to be pure speculation.
Mark Cuban, by contrast, hasn’t been as praising of Doge as Musk has, though he still seems to enjoy the currency. He recently commented that he likes it as much as he likes bitcoin and said he has a great time trading it with his son.
Pushing Doge to the side, Garlinghouse stated that he still feels bitcoin holds the top position in the crypto space. When it came to the currency serving as an inflationary hedge tool, he commented:
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?’
Bitcoin Is Designed to Fight Inflation
His main issue with Dogecoin is that the currency does not employ inflationary barricades the way bitcoin does. As of now, Doge has approximately 132 billion units outstanding, while an additional five billion new coins enter circulation each year. By contrast, bitcoin is much more finite. It has a cap of 21 million coins, and more than 18 million have already been placed in circulation.
Still, however, Dogecoin has managed to jump by more than 71 percent since the beginning of the year. In other words, its market cap has shot up to roughly $28 billion.