The cryptocurrency token Dogecoin (DOGE) has recently seen a massive price increase thanks in large part to Elon Musk’s tweets. Musk, who has called Doge “the people’s crypto,” first started tweeting about the virtual currency in early February. Since then, Doge’s price has skyrocketed 5,000% giving it a market cap of $40 billion.
The digital asset’s surge continued on Tuesday after another billionaire, Dallas Mavs owner and ‘Shark Tank’ investor Mark Cuban suggested during an appearance on The Ellen Show that host Ellen DeGeneres should use the meme currency as payment for her show’s merchandise.
“At the Mavs we sell a lot of merchandise for Dogecoin and you should look at it for the Ellen shop. You guys could sell a whole lot of stuff for dogecoin,” Cuban said.
Meanwhile, in reference to Cuban’s appearance on “The Ellen Show”, cryptocurrency publication CoinDesk pointed out that Cuban did not mention risk factors associated with the cryptocurrency.
Cuban responded by tweeting that “any asset that has inflation by definition is ‘infinite’ [but] that doesn’t diminish it.”
He also emphasized the increasing supply aspect of the crypto, noting that this “changes the utility from store of value to potentially a digital currency. It’s the fact that they create [no more than 5 billion a year] that keeps the per coin price low, which makes it more accessible.”
In other words, what Cuban is saying is that unlike Bitcoin’s float-availability deflation risk, Doge doesn’t have a supply cap, or a limit on the number of coins it will allow. That means its supply rate of inflation will downtrend slowly and predictably and that given its growth rate predictability factor, Doge can have more practical usage in the economy and thus be easily used as a currency for the purchase and sale of goods and services.
DOGE was last trading 12.37% higher on the day at $0.30.