Brad Garlinghouse, CEO of XRP, argues that rising inflation is producing tailwinds for bitcoin and the crypto industry. But he has a caution for those watching the meme token dogecoin.
Garlinghouse remarked during a panel discussion arranged by CNBC at the Fintech Abu Dhabi event on Tuesday that he is not persuaded dogecoin is good to the crypto sector.
In May, Dogecoin achieved an all-time high of $88 billion. Dogecoin is a cryptocurrency based on a popular online Shiba Inu dog meme that began as a joke in 2013.
It is presently the tenth largest digital coin, with a market worth of almost $30 billion, according to CoinMarketCap. It started as a joke, but gained traction thanks to certain high-profile individuals like Elon Musk, Garlinghouse explained. Dogecoin itself has inflationary characteristics, which makes me hesitant to retain it, he continued.
Supply of Dogecoin not Hard-capped
Dogecoin has no hard cap on its total supply, which distinguishes it from certain other notable cryptocurrencies.
According to Garlinghouse, CEO of XRP, which links closely to the XRP digital currency, rising inflation increased interest in cryptocurrencies. Making bitcoin the de facto inflation hedge. They’re seeing unprecedented inflation, according to Garlinghouse. Afraid of losing money in a fiat currency, investors consider:
“How can I invest in non-depreciating assets?” In early November, Bitcoin exceeded $69,000. On average, it outperforms even traditional inflation hedges like gold, which considers as a way to maintain purchasing power during high inflation periods. Bitcoin is clearly on the rise. Since November, the largest digital coin, valued at more than $1.1 trillion, has gained institutional acceptance and real-world use cases.
He thinks these are real advances that are significantly changing their financial system. And I am quite positive and excited about the longer-term outlook, Garlinghouse continued.
Focus on the Arab World
XRP has established a cooperation with Dubai-based start-up Pyypl to ease cross-border payments and utilize the UAE-Saudi remittance corridor. Most remittances go through the Middle East. Despite the SEC’s ongoing investigation into Ripple’s XRP digital token, Garlinghouse said it’s been a fantastic year. Garlinghouse attributes Ripple’s rapid growth in the Middle East to US regulators’ lack of clarity. It’s a shame that the world’s largest economy, which helped create the internet as we know it, is falling behind, said Garlinghouse, who praised the UAE, Japan, Singapore, and Switzerland for their crypto regulatory leadership. He said they hope to hire 250 workers, more than half of whom will be based overseas.
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