Dallas Mavericks owner Mark Cuban said on Wednesday that Dogecoin’s DOGE/USD inflation does not diminish it but rather establishes its utility as a digital currency.
What Happened: Cuban was responding to a tweet from the cryptocurrency publication CoinDesk that pointed out that he did not mention risk factors associated with DOGE such as its “infinite supply” during his appearance on “The Ellen Show.”
See Also: How to Buy Dogecoin (DOGE)
“Any asset that has inflation by definition is 'infinite' [but] that doesn’t diminish it.”
The “Shark Tank” fame investor pointed to the increasing supply of DOGE and said “it changes the utility from store of value to potentially a digital currency. It’s the fact that they create [5 billion a year] that keeps the per coin price low, which makes it more accessible."
Why It Matters: In comparison with other cryptocurrencies like Bitcoin BTC/USD, and Ethereum ETH/USD, which have steep valuations, there is more likelihood of people using DOGE for making purchases, as per Cuban.
This is exactly why people will buy physical products with doge coin and not with btc and rarely with eth. It's hard for someone with $100 to get excited about owning a fraction of btc or eth. It's easy with doge. When it appreciates that makes those items easy 2 buy— Mark Cuban (@mcuban) April 28, 2021
BTC traded 0.66% higher at $54,197.89 at press time, while ETH traded 2.24% higher at $2,581.36. DOGE traded 4.17% lower at $0.26.
Dogecoin co-creator Billy Markus said last week that BTC and ETH too were inflationary. He had said separately earlier “buying and selling” were what mattered. The price of DOGE was “ascribed to it by people,” as per Markus.
Tesla CEO Elon Musk said in February that DOGE was “inflationary” but not “meaningfully” so, and that actually gives it an advantage over BTC.
Musk had called for the transaction speed of DOGE to be a “few orders of magnitude faster.”
Photo by Gage Skidmore on Flickr
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