There is no doubt that Dogecoin has impacted the entire crypto field. However, whether this effect is good or bad is still a hot topic in the industry. Digital assets paved the way for useless cryptocurrencies to become the top of the market, and their entry into the top 10 cryptocurrencies is evidence of their growth.
Ripple CEO Says Dogecoin is Bad for the Crypto Market
Speaking to CNBC on November 24, Ripple CEO Garlinghouse spoke about the crypto market and how inflation is affecting it. Garlinghouse switched to Dogecoin and shared his thoughts on these projects. Most importantly, he believes the memecoin is not good for the crypto market.
The CEO stated his unrealistic stance on the Dogecoin project. Even the creators of the project said that the altcoin they created is just a joke and they don’t believe it will be seen everywhere.
Garlinghouse stated that he actually was not convinced, somewhat controversially, that dogecoin is good for the crypto market. He added that It was built as a joke, then it got some momentum from some high-profile people like Elon Musk
How inflation plays a role in cryptocurrency
Garlinghouse pointed out that rising inflation is the reason many projects like Dogecoin get so much attention. Concerns about rising inflation have undoubtedly led to an influx of new investors into the crypto market, driving prices higher. The CEO stated that this has resulted in people finding assets that may prove sufficient to protect against inflation.
However, Garlinghouse said it was the same inflation worries that kept him away from Dogecoin. He stated that the Dogecoin itself has some inflationary momentum, which makes me hesitate to hold on to it.
Garlinghouse’s reasoning makes sense as there is no upper limit to the supply of Dogecoin. This means that the supply of assets is unlimited, which is what worries the CEO about the nature of inflation. Nevertheless, Dogecoin is still the darling of the community and has successfully established itself on the market and, with its current market capitalization, ranks tenth among the cryptocurrencies.