Bitcoin Isn’t the Phenomenon That Was Expected of It, According to the CEO of Ripple
In an interview with CNBC, Brad Garlinghouse (CEO of Ripple) noted that Bitcoin has not been the “panacea” to solve all of the issues that the public expected.
Ripple is presently based out of San Francisco and they work to develop a network that performs transfers in mere seconds. Their platform uses the XRP token, which was developed by the platform’s creators as well.
Garlinghouse continued in his interview, saying that while Bitcoin will have a role in the future of finance and cryptocurrency, it will not stand to solve anything.
He told the interviewer, “I think it’s (bitcoin) not going to be the panacea that people once thought it would be, where it would solve all of these different kind of problems… Instead, you’re seeing specializations of different kind of ledgers, different kinds of blockchains.”
This statement appears to derive from the fact that the co-founder of Apple, Steve Wozniak, expressed his hopes that bitcoin would evolve into a one-world currency. This idea was brought up originally in a prediction from the CEO of Square, Jack Dorsey.
Garlinghouse was quick to note that this issue is not a matter of one currency vying against the next. Instead, it is a matter of speed, and Ripple is “a thousand times faster” than the “quite slow” Bitcoin.
This statement is entirely factual, in that Ripple’s transactions take seconds while Bitcoin’s take a least 42 minutes. However, consumers should take this fact with a grain of salt, considering that Bitcoin trades much more than XRP on their platform. Much of the problem with Bitcoin seems to be that they have not modified their technology to adapt to this high volume.
It is important to note that Ripple is in the middle of a class action lawsuit by one of their users that lost their profit while exchanging on the platform. In the lawsuit, it has suggested that Ripple violated securities laws, alleging that the founders “earned massive profits while quietly selling off this XRP to the general public, in what is essentially a never-ending initial coin offering (ICO).” ICOs are commonplace in cryptocurrency, since it allows companies to establish new tokens while raising funds.
Regarding the lawsuit, Garlinghouse said,
“Whether or not XRP is a security is not going to be dictated by one lawsuit. I think it’s very clear that XRP is not a security, it does exist independently of Ripple the Company. If Ripple the company shut down tomorrow, the XRP ecosystem would continue to exist. It’s an independent, open-sourced technology.” In the rest of his statement, he concluded, “XRP has a lot of utility, so to me it’s quite different than what a security you know looks like and I think ultimately we’ll find that conclusion.”