Dogecoin (DOGE) co-creator Billy Markus said Sunday that the inflationary nature of the cryptocurrency doesn’t “matter for price.”
What Happened: Markus took to Twitter Inc’s (NASDAQ:TWTR) platform to explain his rationale. He said that while DOGE’s supply is fixed, cryptocurrencies are infinite.
“New coins come out every day, hour, minute, with various parameters and various random reason people can point to that make them superior or not.”
“Those don’t matter for price. Only buying and selling does,” said Markus.
The Dogecoin co-creator said that the fact that DOGE is valuable is “ironic” and so is the fact that it attracts haters.
Dogecoin started as a parody. This is exactly what it was parodying – all the tribalism, all the random hate and people taking up their bags and crapping on other people’s.
The fact that Doge is valuable is ironic. The fact that it has massive haters for that is also ironic.
— Shibetoshi Nakamoto (@BillyM2k) April 18, 2021
Markus said in response to a comment on Twitter that DOGE like every other cryptocurrency has a value as “ascribed to it by people.”
Markus pointed to Tesla Inc (NASDAQ:TSLA) CEO Elon Musk’s thoughts on Dogecoin supply when he had said in February that DOGE’s inflation is not meaningful since only a fixed number of coins are added per unit of time, while Bitcoin (BTC) is deflationary “to a fault.”
At press time, DOGE traded 11.6% higher at $0.33 while BTC traded 4.97% lower at $56,869.09.
Why It Matters: The reason why Musk enjoys Dogecoin is because of irony, according to Markus, but the reason why it has value is “just buying and selling.”
The co-creator of Dogecoin revealed on Twitter that he owns 122,000 DOGE, worth around $40,260 as of press time. DOGE has risen 6,816.94% since the year began.
In an interview with Benzinga last month, Markus revealed he had previously liquidated all his cryptocurrency holdings in July 2015 for nearly $10,000. If he had held on, in March those would have been valued at nearly $2 million.
Last week he advised investors to be rational while investing in “highly volatile assets” like cryptocurrency.
For real though guys keep some rationality when gambling on highly volatile assets like cryptocurrency.
Euphoria is a helluva drug, but y’know, at least keep paying your bills and feeding your family and have a safe rainy day fund.
Stay safe, be smart! pic.twitter.com/v272uMe4lL
— Shibetoshi Nakamoto (@BillyM2k) April 15, 2021
On Sunday, he cautioned against tribalism. “A community is one with people participating. Communities are healthy. Tribalism is people hating on anything different than them. Tribalism is unhealthy,” said Markus.
Photo by Furtherfield Gallery on Flickr
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