Ripple’s CEO, Brad Garlinghouse, says that Bitcoin could soon lose its dominance over the price of other cryptocurrencies. During a recent interview with CNBC, he noted that despite the fact that cryptocurrency prices are highly correlated with Bitcoin, this could end soon.
“Bitcoin may end up being the Napster of digital assets. It’s shown what’s possible. But Spotify, iTunes, Pandora engaged the system and regulators, and they ruled the day.”
–@bgarlinghouse speaking at #Codecon watch the full interview now. https://t.co/IaclqUntrH
— Ripple (@Ripple) May 30, 2018
He was quoted as saying;
There is a very high correlation between the price of XRP and BTC.
This fact, according to Garlinghouse, is despite the fact that the two are independent open-sourced technologies. Garlinghouse told CNBC’s Power Lunch on Wednesday that over a period, rational markets will emerge and price behaviors will reflect that.
He seemed hopeful that the market would soon behave in a manner that best reflects the solid cryptocurrency projects rather than speculation. The entire market had taken a colossal hit this year with growing concerns on regulations and possible government crackdowns, which are largely said to be the reason why the total market capitalization fell by more than 50% in 2018.
XRP has lost a significant share of its value prompting critics to label Ripple as the worst performer of 2018. While the two largest cryptocurrencies by market cap, Bitcoin, and Ethereum had all lost close to 40% of their value each, Ripple lost 74%. In 2017, Ripple started the year valued at less than a penny, but later XRP skyrocketed 35,000%. On January 8th, 2018 XRP hit a high near $3.45 at the time of this writing was trading at 62 cents.
Ripple is currently developing a network that will enable faster global financial payments. On the other hand, XRP is the name to the digital token that will be used by financial institutions in this network to facilitate faster transactions.
Recently, a London-based broker and international payment provider firm noted that Ripple (XRP) could be a game changer in the financial world following a successful pilot test. Currencies Direct say that it used Ripple’s xRapid technology to send and receive money from banking institutions in the US, Europe, and Mexico, in seconds down from three to five days.
This new development was made in the midst of a wave of adoptions with Kuwait’s most prominent Islamic lender announcing that they will be joining Ripple’s network. Kuwait Finance House decided to join RippleNet to lower the cost and increase the speed of cross-border payments, adding to companies like MoneyGram, which are already testing XRP for cross-border payments.
Garlinghouse also said that he believes that 99% of cryptocurrencies will not survive the next ten years. This prediction, he explains, is because many of the cryptocurrency projects available today fail to solve a problem. Its important to note here that there are more than 1500 cryptocurrencies in circulation today.
Many of these cryptocurrencies have no proven use cases. They also stand accused of being plots of fleecing investors through the blockchain-based fundraising model, Initial Coin offering. The U.S. Securities and Exchange Commission had warned investors about potential ICO scams and pump and dump schemes.