Ripple CEO blasts Dogecoin for ‘inflationary dynamics’
El Salvador aims to establish the world’s first “Bitcoin City,” first funded by Bitcoin-backed bonds, according to President Nayib Bukele.
The decision is being interpreted as a wager that he would be able to use bitcoin to boost investment in the Central American country.
Bukele claimed the city planned in the eastern district of La Union would obtain geothermal electricity from a volcano and would not collect any taxes except the value-added tax during an event that wrapped up a week-long promotion of Bitcoin in El Salvador (VAT).
The CEO of Ripple, the firm that created the XRP cryptocurrency, isn’t a fan of Dogecoin, meme-based digital money (DOGE).
DOGE, according to Brad Garlinghouse, is bad for the cryptocurrency market because of its supposed “inflationary dynamics” and infinite supply.
The price of Bitcoin (BTC) is rising due to global inflation, but Dogecoin supporters should be cautious. On Tuesday, Garlinghouse spoke at a Fintech Abu Dhabi session chaired by CNBC.
“I’m not sure, and this may be controversial, that Dogecoin is beneficial for the crypto economy.” “I would be hesitant to retain Dogecoin because of its inflationary features,” Ripple CEO stated.
Dogecoin, according to Garlinghouse, has no hard limit on the total amount of coins in circulation, which distinguishes it from other popular cryptocurrencies such as Bitcoin, which has a maximum of 21 million coins.
“It started off as a joke, but it gained traction thanks to certain high-profile people like Elon Musk,” Garlinghouse explained.
Despite his reservations about DOGE, Garlinghouse remains upbeat about the cryptocurrency industry as a whole.
Dogecoin is a cryptocurrency that was created as a joke in 2013 and is based on the Shiba Inu meme. The digital currency began with a 100-billion-coin production cap, which it reached in mid-2015. Since then, Dogecoin’s production has been unlimited, with a reward limit of 10,000 DOGE every block to keep inflation under check.
Musk has been tweeting a lot about DOGE recently, bringing up the exchange’s CEO Changpeng Zhao about Dogecoin’s withdrawal troubles on Binance on Nov. 22. The current problem was caused by a “technical error during the recent upgrade process that led outdated transactions to be resent to 1,674 customers,” according to Binance.
Despite testing Binance at one time, the CEO said he doesn’t use it because “sign-up was too many hoops to jump through.”