Elon Musk defends Dogecoin's inflationary model
Key Takeaways
- Elon Musk supports Dogecoin's inflationary model, stating it's a feature.
- Dogecoin's market value has exceeded Ford, Adidas, and Roblox.
Share this article
Elon Musk defended Dogecoin’s inflationary model, stating that its flat inflation is “a feature, not a bug.” His comment came as a response to a recent tweet from Shibetoshi Nakamoto, also known as Billy Markus, who co-created the popular meme coin.
Shibetoshi addressed repeated questions about Dogecoin’s inflation rate by referring to the crypto’s GitHub code, specifically line 146, where the inflation rate is defined. He suggested that those wanting to modify the inflation rate could alter the code and seek community approval.
Dogecoin’s inflationary supply model and its utility have drawn much skepticism. Critics argue that the model, which allows for the continuous creation of new coins, could lead to depreciation over time.
However, Musk and others, including investor Mark Cuban, argue that the inflationary nature of Dogecoin does not detract from its value. Instead, it positions DOGE as a more practical digital currency for everyday transactions, as lower prices per coin make it more accessible for average users compared to Bitcoin or Ethereum.
Musk’s public endorsement of Dogecoin’s inflationary model came after his appointment as co-lead of the Department of Government Efficiency (DOGE) alongside Vivek Ramaswamy in Trump’s administration. The new agency focuses on streamlining federal operations and reducing government spending.
The acronym DOGE humorously references Dogecoin. Following Musk’s latest comment, Dogecoin reached $0.42, its highest mark in three years, CoinGecko data shows.
Source: CoinGecko
The token’s value has risen dramatically since Trump won the presidency. It has now overtaken Ripple’s XRP token as the 6th largest crypto in terms of market capitalization.
With a market cap of approximately $60 billion, Dogecoin is now bigger than Ford, Adidas, and Roblox.
Share this article
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Nintendo expands its SNES collection with Fatal Fury 2 and two more games
Share link:In this post: Nintendo Switch Online expands its SNES Switch Online basic collection with three new games. The Japanese gaming company added Fatal Fury 2, Super Ninja Boy, and Sutte Hakkun. Gamers can also get tiered access to other prolific retro game platforms through online subscriptions.
Ripple requests an extended due date of April 16 for its brief in SEC case
Share link:In this post: Ripple asked for an April 16, 2025, deadline to file its brief in the ongoing SEC case over XRP sales. The SEC appealed a 2023 court ruling that said XRP retail sales weren’t securities, claiming the decision was flawed. Ripple’s legal team dismissed the SEC’s arguments as weak, while Better Markets backed the regulator, calling Ripple’s marketing misleading.
MicroStrategy to redeem $1.05B in 2027 convertible notes with share settlements
Share link:In this post: MicroStrategy redeems $1.05B in 2027 convertible notes, offering investors the option to convert into shares before February 20. The company recently bought $1.1B in Bitcoin, fueling speculation it may use redeemed funds for additional crypto purchases. MicroStrategy faces potential tax challenges on unrealized crypto gains under the Inflation Reduction Act, though exemptions may be possible.
MicroStrategy to redeem $1.05 billion in convertible notes amid crypto tax uncertainty
A note will be converted at a rate of 7.0234 shares of MicroStrategy’s class A common stock (MSTR) for every $1,000 of the principal amount.The move could be an attempt to mitigate the firm’s debt and to entice noteholders to convert to company equity.
Trending news
MoreCrypto prices
More
