- Doge, according to Brad Garlinghouse, is a bad cryptocurrency.
- Doge’s inflationary character, according to him, does not meet the crypto feature.
- How a small number of investors control the majority of Doge’s supply.
Many cryptoers have taken to Dogecoin, the most popular meme coin and one of the most spectacular of the year.
While many in the crypto world claim that Doge instills enthusiasm in the market, Brad Garlinghouse, CEO of Ripple, disagrees. Dogecoin, according to Garlinghouse, may not be beneficial for the crypto market.
He particularly mentioned adopting cryptocurrency as an inflation hedge. However, the inflationary nature of the meme coin, according to the CEO, does not fit well into that scenario.
At the Fintech Abu Dhabi event, Garlinghouse took part in a panel discussion chaired by CNBC. Rising inflation is causing “tailwinds” for the whole sector, he said during the event.
He explained how the Labor Department announced 6.2 percent annual inflation for October, and Bitcoin’s price soared to an all-time high of $70,000 immediately after.
Garlinghouse doubted Doge‘s ability to apply this approach to its value proposition.
According to Garlinghouse, Doge has certain inflationary features that make me hesitant to keep it.
Doge has certain inflationary features that make me hesitant to retain it, according to Garlinghouse. Dogecoin, unlike Bitcoin, does not have a fixed supply, making it a weak argument for long-term usage as an inflation hedging asset.
According to its developer, Dogecoin was created in hours and introduced in 2013. It started as a joke inspired by a famous internet meme.
However, it has subsequently risen to become the tenth largest cryptocurrency in terms of market capitalization. After profiting on Doge’s popularity, Shiba-Inu, another meme coin, sprang to prominence.
Another reason to avoid Dogecoin is that it is a risky investment
As reported by The Wall Street Journal, the one whale that is alleged to hold 28 percent of all Dogecoin in existence is one reason many doubters continue to criticize Dogecoin.
The mystery surrounding the investment continues to grow. The individual, though, remains unidentified. Similarly, 70% of Dogecoin‘s entire supply is held in under 100 wallets, making its price readily manipulated by a small group of people.
This suggests that Elon Musk isn’t the only one who can significantly influence the price of Dogecoin. The price of Doge can be influenced in either direction by the mysterious whale. Whales can drastically affect the market and swiftly sweep little investors aside.