Bitcoin is the most known virtual currency all over the world, and it has been used by individuals so as to transact money or place their savings. But Ripple’s CEO, Brad Garlinghouse, said that Bitcoin could end up more like Napster, a defunct peer-to-peer service for sharing digital audio files.
XRP is now one of the most important cryptocurrencies in the market (it is the third most important after Bitcoin and Ethereum), and it is mainly used for banks and financial institutions to perform cross border payments.
During The Recode’s Code COnference, Brad Garlinghouse, Commented:
“We may come to find that Bitcoin is kind of the Napster of digital assets. This is transformative technology, but Spotify and iTunes and Pandora rule the day because they engaged with regulators to solve a real problem.”
The truth is that regulators all over the world are trying to understand how to better regulate Bitcoin and blockchain technology – which is the technology behind Bitcoin. Important businesses including Intel, IBM, and Microsoft, are all embracing the technology and improving their services. But there is not a clear framework about how to deal with these assets.
Ripple has been working in order to offer a service for enterprises, governments and traditional banks. His comments seem very logic if we understand his background and what he does. Some of the institutions that now are working with Ripple are American Express, Santander and Credit Agricole.
He has also said that Bitcoin for buying a coffee is not a real possibility. The average Bitcoin transaction takes over 20 minutes, and the fees associated with it would double the price of the coffee.
He explained that cutting transaction costs and reducing times for banks is not something that people is interested about. But that does not meant that it is not important. Additionally, Garlinghouse said that he does not think blockchain is solving consumer problems yet.