Although red hot inflation is producing tailwinds for bitcoin and the cryptocurrency sector, Ripple CEO Brad Garlinghouse warns those keeping track of the meme token dogecoin.
Garlinghouse stated at a panel discussion conducted by CNBC at the Fintech Abu Dhabi event, which aired on Tuesday that it did not convince him, which is pretty controversial in his opinion, that Dogecoin is beneficial to the cryptocurrency market.
Dogecoin From a Joke
In May of this year, Dogecoin, a cryptocurrency based on an online viral meme of a Shiba Inu dog that began as a joke in 2013, reached a market valuation of $88 billion, a record high for crypto. The industry website CoinMarketCap is now the tenth most valuable digital asset, with a market capitalization of about $30 billion.
It started as a joke but gained traction thanks to high-profile individuals such as Elon Musk. The inflationary dynamics of Dogecoin are such that I would be hesitant to have it in my possession.
When it comes to dogecoins, there is no hard cap on the total supply, which distinguishes it from other popular cryptocurrencies.
The growing interest in cryptocurrencies has surged in recent months, according to Garlinghouse, the CEO of fintech firm Ripple, which is closely tied with the XRP digital currency. Garlinghouse believes bitcoin has become the inflation hedge of the moment.
According to him, he has been witnessing inflation that he has not seen in decades. When people are concerned about keeping a fiat currency that may be expanding and devaluing, they consider the following: ‘How can I hold alternative assets that will not be subjected to the same inflationary dynamic?’
BTC in a Bigger Picture
According to Garlinghouse, bitcoin is gaining significant traction. The most prominent digital coin has a market capitalization of about $1.1 trillion as of November. Due to the pandemic outbreak, it has experienced more institutional acceptance and more widespread real-world applications.
Taking a step back and looking at the big picture, he believes that these are actual innovations fundamentally. He further believes it is changing the way our financial infrastructure operates. He is positive and hopeful about what the longer-term horizon will look like.
In November, bitcoin reached an all-time high of nearly $69,000 per token, setting a new record. Despite recent declines below $60,000, the stock’s year-to-date performance outperformed even the most traditional inflation hedges, such as gold. Which is a better preserver of buying power during periods of sustained high inflation.
It also announced a partnership with Dubai-based start-up Pyypl to facilitate cross-border payments. Additionally, it taps into the region’s remittance corridor between the UAE and Saudi Arabia. Ripple recently launched a new office in the Dubai International Financial Center and will hire 250 people there. The Middle East is home to two of the world’s three busiest remittance routes, with the other being in Africa.
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