Ripple CEO Still Holds Bitcoin (BTC) And Doesn’s Believe Prices Will Fall To Zero
The man in charge of the second largest distributed ledger in the world by market cap, Ripple, does not seem to believe that Bitcoin will die. Brad Garlinghouse, the CEO of Ripple, has defended Bitcoin on the World Economic Forum, which is currently happening in Davos, Switzerland.
He was a part of a panel discussing cryptocurrencies and some of the people present affirmed that what is interesting about the whole market is the underlying blockchain technology, not the cryptocurrencies like Bitcoin.
One investor even claimed that Bitcoin’s price would fall to zero. Jeff Schumacher is known for his skepticism on Bitcoin. He has claimed several times that Bitcoin does not work as a way to store value and that this idea has no basis at all to exist. According to him, Bitcoin is nothing and only the blockchain technology has a real value and real uses.
Brad Garlinghouse disagreed, however, defending the crypto industry and Bitcoin from its fierce attackers. He claims that the value of Bitcoin is derived from what it delivers and that there are many use cases for Bitcoin, but is not so keen as seeing it as a currency.
To him, it is considerably more a way to store money and protect it from inflation than to actually spend it. This happens mostly because the ledger is still not quick enough so that the transactions are going to be mainstream so soon.
The CEO affirmed that he still holds BTC and that he is not ready to believe that it is doomed. However, the criticized the inefficient proof of work mechanism used by the token, which is “likely to fall short”. The CEO of Ripple also believes in the idea that Bitcoin is the digital version of gold and, as soon as the current hurdles in price, which were caused by hype, are over, its prices will stabilize more.
He defended Bitcoin by affirming that it is a way to rewire how the modern financial system works and that it can change cross-border payments together with Ripple. Bitcoin, he affirmed, is great for the industry and for banking.
Garlinghouse also complained that the media seems to have a very bad image of Bitcoin and there was not a lot of “cultural development” around the technologies because of all the bad press that it receives so often. He sees the world crypto being too related to illegal initiatives like the Silk Road (which sold illegal goods like drugs) and that people should know about what the blockchain can do.
Most of the people at the panel would not disagree with the CEO of Ripple completely. Glenn Hutchins, which was also present, claims that crypto will have value in the future, at least more than other smaller tokens and that it can become an intermediate digital store of value in a more decentralized economy.
Another person from the panel, Alex Pack, which manages Dragon Capital Partners, believes that the price of Bitcoin can fall even more to the range of $2,000 or $1,000 USD but he is sure that Bitcoin has a secure future and that the token will never fall to zero.
“Blockchain, Not Crypto”
Some people certainly do not love Bitcoin so much and want to see it fall. Aleksandr Ivanov, for instance, has recently claimed that cryptos are just a small part of the blockchain industry, an opinion that is mirrored by the CEO of Paypal, Dan Schulman. He is a skeptic for cryptos but interested in the blockchain.
He doesn’t see cryptos as a real currency and adds that they are used as rewards systems, and only that, very often, like it was the case in many recent Initial Coin Offerings (ICOs). He also pointed out that most merchants are not keen on using Bitcoin because their margin rates are slim and the volatility can eat them all away.
Curiously, PayPal is now accepting withdrawals from Coinbase and letting employees earn tokens for “experiences”, so some people in the company do not hate cryptos so much as the CEO.
Want to know who is right in this neverending debate? So are we. Let’s all keep following the industry for more news about the future of Bitcoin.