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Ripple CEO Argues Dogecoin is Bad for the Crypto Economy

Red hot inflation is producing “tailwinds” for bitcoin and the crypto sector, according to Ripple CEO Brad Garlinghouse, but he has a warning for those following the meme currency dogecoin.

“I’m honestly not convinced, somewhat controversially, that dogecoin is good for the crypto market,” Garlinghouse said during a panel discussion organized by CNBC at the Fintech Abu Dhabi event, which aired Tuesday.

In May of this year, Dogecoin, a cryptocurrency based on a famous online meme of a Shiba Inu dog that began as a joke in 2013, reached a market capitalization of $88 billion.

According to the industry website CoinMarketCap, it is now the tenth-largest digital asset, with a market value of about $30 billion.

“It started off as a joke, but it gained traction thanks to certain high-profile people like Elon Musk,” Garlinghouse explained.

“Dogecoin itself has some inflationary aspects that make me hesitant to hold it,” he continued.

Dogecoins have no hard restriction on their total quantity, which sets them apart from some other popular cryptocurrencies.

Rising inflation, according to Garlinghouse, CEO of fintech startup Ripple, which issues the XRP digital asset, has spurred demand in cryptocurrencies, making bitcoin an inflation hedge-du-jour.

“We’re seeing inflation that we haven’t seen in decades,” Garlinghouse said.

“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 hit an all-time high of nearly $69,000 per token earlier in November. Despite falling below $60,000 in recent days, its year-to-date return has outpaced even the most traditional hedges against inflation, such as gold, which is seen as a preserver of purchasing power during periods of sustained high inflation.

“Bitcoin has a lot of momentum,” Garlinghouse said. The biggest digital coin had a leading market cap of almost $1.1 trillion as of November, and has seen increased institutional adoption and more mainstream real-world use cases through the pandemic.

“I think if you step back and take a long view … these are real technologies that are fundamentally reworking how our financial infrastructure works and I’m very bullish and very optimistic about what the longer-term horizon looks like,” Garlinghouse added.

Middle East focus

Ripple, which recently opened a new office in the Dubai International Financial Center and plans to hire 250 people, also announced a partnership with Pyypl, a Dubai-based start-up, to enable cross-border payments and tap into the $78 billion a year remittance corridor between the UAE and Saudi Arabia.

“It has been a gangbuster year for Ripple,” Garlinghouse said, despite an ongoing SEC probe into the status of its XRP digital token.

Garlinghouse said the Middle East was one of Ripple’s fastest-growing markets, given what he called a lack of “clarity” from regulators in the United States.

“It’s unfortunate that the largest economy in the world, that really helped catalyze the internet as we know it today … is really falling behind,” Garlinghouse said while praising countries like the UAE, Japan, Singapore, and Switzerland for providing leadership on crypto sector regulation.

“We’re looking to add about 250 employees, and more than half of those will be outside the United States,” he said.

Source: cnbc.com

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About Skyhigh.Vip  

Skyhigh.Vip is a global institutional investor with a vast interest in Arts / Construction / Education / Business Services / E-Sports and various other growth industries.  

Several of its popular portfolios include GO Chambers which is the world’s largest business chamber listing provider with over 30,000 active chambers as its members.  

Flexgigzz is the Asia leading marketplace for freelancers service and together with SOHO Learning Hub which is an online platform for short courses and both of them aims to be the number one provider in Asia. For growth industries such as E-Sport Authority which is dedicated to providing independent media coverage to all E-Sport News related from around the world and for the art world, there is Atelier Auction which is an investable art auctioneer and being in the art scene for decades.

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