Dogecoin is not good for the crypto market, Ripple CEO says

KEY POINTS
Dogecoin, a cryptocurrency based on a viral internet meme of a Shiba Inu dog which started as a joke in 2013, had a market capitalization as high as $88 billion in May this year.
There is no hard limit on the total supply of dogecoins, which makes it different from some other prominent cryptocurrencies.
Bitcoin hit an all-time high of nearly $69,000 per token earlier in November.
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Rising inflation is creating tailwinds for crypto market: Ripple CEO
Ripple CEO Brad Garlinghouse says red hot inflation is creating “tailwinds” for bitcoin and the crypto sector, but has a warning for those tracking the meme token dogecoin.

“I’m actually not convinced, somewhat controversially I guess, that dogecoin is good for the crypto market,” Garlinghouse told a CNBC-moderated panel discussion at the Fintech Abu Dhabi event which aired Tuesday.

Dogecoin, a cryptocurrency based on a viral internet meme of a Shiba Inu dog which started as a joke in 2013, had a market capitalization as high as $88 billion in May this year.

It is now the 10th largest digital coin with a market value of almost $30 billion, according to industry website CoinMarketCap.

“It was built as a joke, then it got some momentum from some high-profile people like Elon Musk,” Garlinghouse said.

“Dogecoin has some inflationary dynamics itself that would make me reluctant to hold it,” he added.

There is no hard limit on the total supply of dogecoins, which makes it different from some other prominent cryptocurrencies.

Garlinghouse, the CEO of fintech firm Ripple which is closely associated with the XRP digital asset, said rising inflation had accelerated interest in cryptocurrencies and made 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,