Elon Musk has commented on Dogecoin (DOGE) inflation, saying that the currency’s flat inflation is a feature, not a bug. The asset has boomed in the past month thanks to Donald Trump’s US election win, as the President-elect says Elon Musk will join his staff. Musk will reportedly head the new Department of Government Efficiency, conveniently coined the “DOGE” department.
According to Elon Musk, the flat inflation of Dogecoin, which means decreasing percentage inflation, is supposed to appear. Musk responded to a tweet by Billy Markus, the creator of Dogecoin also known as Shibetoshi Nakamoto, where Markus explained how to remove the inflation of dogecoin. Agreeing with Musk that this was ideal for something like DOGE intended as a currency, Markus added Dogecoin will have “predictable inflation with a percentage that goes down much much lower than the dollar.”
Dogecoin has a diminished inflation rate because it has a fixed yearly issuance of 5 billion coins. This means that each year, the rate of inflation decreases comparative to the total supply. This in turn makes Dogecoin an ideal candidate to be used as a currency.
Also Read: Dogecoin (DOGE) Predicted To Rally 566%, Hit $2.40: Here’s When
Dogecoin has quickly climbed to multi-year highs over the last month. The asset is also up over 300% since November 2023. Many analysts are bullish that the original meme coin will continue to surge through the end of 2024 into 2025.
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