Dogecoin's Flat Inflation Is 'A Feature, Not A Bug,' Says Elon Musk

Elon Musk on Wednesday reaffirmed his support for Dogecoin's (CRYPTO: DOGE) inflation model, labeling its flat inflation rate as a "feature, not a bug."

What HappenedL The conversation emerged after Dogecoin co-creator Shibetoshi Nakamoto (Billy Markus) pointed out the technical possibility of removing Dogecoin's inflation by altering a line of code on its GitHub repository.

Markus, however, made it clear that altering Dogecoin's inflation was not a simple task, advising those interested to "convince the community and miners" if they desired a change.

Musk's comment came in response, framing Dogecoin's predictable, flat inflation as beneficial rather than problematic.

“I think the flat inflation of Dogecoin, which means decreasing percentage inflation, is a feature, not a bug,” Musk posted, suggesting this characteristic could serve as an advantage for Dogecoin as a currency.

Markus, echoing Musk's view, added that Dogecoin's "steady predictable inflation" is far lower than that of the U.S. dollar, aligning with his vision for a stable, user-friendly digital currency.

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Why It Matters: The dialogue on Dogecoin’s inflation model arrives amid renewed interest in the cryptocurrency, further spurred by Musk's financial backing of Donald Trump‘s presidential campaign.

Since Trump’s win, Dogecoin has surged over 100%, suggesting Musk's influence as a primary driver behind its recent rally.

Dogecoin's potential as a mainstream currency is also gaining traction among institutional players.

Spirit Blockchain Capital, a Canadian digital asset management firm, recently announced plans to build a significant Dogecoin reserve, intending to bring Dogecoin into mainstream finance.

Echoing Musk's vision of Dogecoin's future as a widely-used currency, Spirit CEO Lewis Bateman stated that Dogecoin's underlying structure and inflation model make it uniquely positioned as a potential payment asset.

The flat inflation model, which Nakamoto and Musk both praise, could be pivotal for Dogecoin's adoption.

Unlike Bitcoin's capped supply, Dogecoin issues a fixed number of new coins annually, resulting in a gradually declining inflation rate as the overall supply grows.

This model aligns with Musk's vision of Dogecoin as a viable medium for daily transactions—a critical advantage for Spirit Blockchain and others aiming to institutionalize Dogecoin's ecosystem.

What’s Next: As Musk continues to champion Dogecoin, the cryptocurrency is expected to gain further attention at events like Benzinga’s Future of Digital Assets on Nov. 19, where the evolution of digital assets will be a focal point.

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