Bitcoin’s Influence on Crypto Prices to End Soon Says XRP CEO
- The Knowledge Group
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Recently, Ripple CEO Brad Garlinghouse declared that Bitcoin’s influence on cryptocurrency values could soon end. Garlinghouse regards Bitcoin as the “Napster” of digital currency and said Bitcoin, like Napster, could become obsolete. Spotify, Pandora, and iTunes rule, said Garlinghouse, “because they engaged with regulators to solve a real problem.”
It wasn’t the first Bitcoin-Napster comparison.
Ripple has its own cryptocurrency, XRP, designed to facilitate global transactions. Ripple can handle more than 1,000 transactions in a second, versus Bitcoin’s seven.
The Ripple Effect
No doubt, Ripple is making waves in financial institutions. In April, Santander adopted Ripple’s One Pay FX platform for international money transfer customers in Britain, Spain, Poland, and Brazil.
That noted, Ripple isn’t comparable to Bitcoin.
Anyone may mine Bitcoin. Miners do the heavy computer work of verifying each transaction. In contrast, Ripple’s clients use select verifiers to validate transactions. Ripple’s 100 billion XRP coins were created all at once, and the company keeps close to half in an escrow account.
Bitcoin is different—its keynote is decentralization.
Need for a Decentralized Solution
Digital currencies lost momentum after their stunning rise in December 2017. Is a new surge coming? Indeed, the reasons for adoption of blockchain-based currency are plausible and plentiful.
Given the increased volatility in the traditional stock market as it reacts to U.S. tariffs, blockchain players such as Bitcoin, with its fixed supply of only 21 million coins, could appeal to hedge fund investors.
Moreover, a major Visa outage throughout Europe on the first day of June showed the vulnerability of highly centralized financial platforms.
The Endurance of Bitcoin
Today, 1,500+ Bitcoin alternatives (“altcoins“) exist. Most will prove useless. Some will be exposed for improper fundraising in their initial coin offering (ICO) phase. The Securities and Exchange Commission said in March it will regulate ICOs as securities. Ripple sees itself more like traditional currency, because of its proven utility.
In any case, digital currency watchers hold a spectrum of opinions of Ripple’s model. But few would claim another coin has arisen to replace Bitcoin’s influence in the sphere.
We have two upcoming cryptocurrency webcasts coming up, both eligible for Continuing Legal Education (CLE) and Continuing Professional Education (CPE) Credit. June 19th sees us discuss Blockchain and digital currencies (full information can be found here). We will also be covering the SEC’s enforcement of initial coin offerings (ICO), the full details can be found by clicking here. we hope to see you at one, or both, of these events.