Today, many in the crypto space were asking the same question: Did the Ripple CEO just create a crypto-war with Bitcoin investors?
In an interview with CNBC, Ripple CEO, Brad Garlinghouse, compared Bitcoin to Napster, and even went so far as to says Bitcoin’s market influence could weaken.
During the discussion, Garlinghouse, referred to cryptocurrency as one of the most recent “nascent industry,” examples and also said;
over time, you’ll see a more rational market and behaviors that reflect that.
Ultimately, this is not a positive for Bitcoin, according to Garlinghouse because;
there will be a correction along the way here, where a lot of the players in the space that don’t actually solve a real problem are going to get washed out.
Here, he is essentially saying that Bitcoin serves no significant function. Of course, many crypto investors feel otherwise.
At a conference this week, Garlinghouse said Bitcoin’s future will be more like the now defunct sharing of music service Napster. Garlinghouse said that Napster showed us what’s possible, but it was Spotify, iTunes and Pandora that won the day.
Some traders have suggested that this means there is now an all-out war between those supporting Ripple and those supporting Bitcoin.
Ripple’s CEO also discussed crypto from the perspective of the securities exchange regulation in the U.S. This most likely comes in response to a former U.S. government regulator that recently said that both Ripple and Ethereum (ETH) could be considered unregistered securities.
In Gaelinghouse’s view, the coin will not be labeled as a security under U.S. law because it is not comparable to owning corporate stock in a company;
If you own XRP, you don’t own rights to the profits or any dividends to the company. XRP has real utility.
The U.S. Securities and Exchange Commission (SEC) recently announced its Operation Cryptosweep in collaboration with Canadian government authorities. The program is planned for investigating potentially fraudulent crypto companies and Initial Coin Offerings (ICOs).
But as the battle between Ripple and Bitcoin rages, many investors are wondering: In the end, who will win out? Only time will tell. But this is a story that is not likely to be going away any time soon. Bitcoin does not have a CEO in the same way that Ripple does, and so this does put BTC at something of a disadvantage in the media fallout that could unfold from here.