Brad Garlinghouse is the CEO of Ripple.
The photo was taken for TechCrunch.
Dogecoin is not good for the broader market, according to the chief of payment networks company.
Brad Garlinghouse, CEO of Ripple, said at a Tuesday panel discussion moderated by CNBC at the Fintech Abu Dhabi conference that he was not convinced that dogecoin was good for the market.
He said that he would be reluctant to hold it because of inflationary dynamics.
He said that a surge in inflation has been a positive for the broader market. The consumer price index and the personal consumption expenditures index were both at their highest levels since 1990 as of October.
The fixed supply of about 21 million coins makes it a hedge against inflation, but not all of them have been mined. The digital asset used in the payment network has a fixed supply.
Garlinghouse noted that there has been a lot of activity. The price has doubled this year, and its market cap has grown past $1 trillion.
He said that when people are concerned about holding a currency that might be devaluing, they are looking at how to hold other assets that won't have that inflationary dynamic.
Dogecoin has no hard limit on the total supply of coins. Dogecoin has more than 132 billion coins outstanding, with 5 billion new coins hitting the supply every year. The circulating supply of the digital currency is close to its supply limit.
Dogecoin's market cap has increased by more than 70% year-to-date to more than $28 billion. The meme coin was off of its highest price on Wednesday. This year, the price of XRP has increased by 352%.
Business Insider has an original article.
