Dogecoin cofounder Billy Markus, known as Shibetoshi Nakamoto on X, responded to a proposal for a $5,000 stimulus check for every U.S. adult by suggesting the government purchase $1.2 trillion worth of Dogecoin instead. Economists warn that a one-time direct payment of that size would do little to ease affordability pressures and could push consumer prices higher in the coming months.
instead the government should buy 1.2 trillion dollars of dogecoin and give some to every american 🤣 https://t.co/JkcrCMsQbI
— Shibetoshi Nakamoto (@BillyM2k)
Consumer Sentiment Weakens Amid Inflation Concerns
In August, consumers’ short-term outlook slipped further into negative territory, according to a Conference Board report. The University of Michigan’s latest consumer survey also showed sentiment worsening due to concerns that inflation would remain elevated.
$1.2 Trillion Dogecoin Giveaway: Feasibility Check
Markus is known for his characteristic humor, and his recent comment about a $1.2 trillion Dogecoin giveaway may be taken lightly. Ranking as the 11th largest cryptocurrency by market cap, Dogecoin is currently worth $13.24 billion. The coin has a total supply of 155.88 billion DOGE (valued at over $13.09 billion), with all coins in circulation. A $1.2 trillion purchase would far exceed the asset’s total market value.
Although Dogecoin has an infinite maximum supply, a fixed yearly issuance of 5 billion coins prevents excessive supply from flooding the market. This mechanism supports the narrative of a diminishing inflation rate for Dogecoin, meaning the rate of inflation decreases relative to the total supply each year. Markus’ comment may not directly imply a literal $1.2 trillion buy but rather highlight Dogecoin’s diminishing inflation property.
Stimulus Checks Viewed as Inflationary
Direct payments to consumers are often considered inflationary by economists and may cause prices to rise further, reducing the intended impact of a stimulus check. The Dogecoin cofounder supports this viewpoint, stating that the $5,000 stimulus payment may be inflationary when we don’t need more inflation.
At the time of writing, Dogecoin was trading at $0.0849, up 1.75% in the last 24 hours, according to CoinMarketCap.
