Ripple [XRP] CEO Want You To Understand about Crypto Market
Cryptocurrencies are being created wherever you look today. People are drawn to them like bees to honey because of their promise of allowing people to make private and anonymous transactions. While some cryptocurrencies thrive and grow, others do not. But regardless of that, the crypto market is seeing a boom and is expected to continue doing so. In an interview with CNBC, Ripple CEO Brad Garlinghouse touched upon a few key points on the crypto market.
3 Interesting Things Ripple CEO said about Crypto market
- Any digital asset is only worth as much as the problem it solves
Most of the crypto tokens available today only have a business model to show for their work and a speculative value. People invest in them to become overnight millionaires, thinking their cryptocurrency will become the next Bitcoin. However, Brad Garlinghouse said that any digital asset is only worth as much as the problem it solves. The blockchain revolution is a force for the greater good, not individual gain. This is why cryptocurrency creators should look for ways to use their coin to solve the issues that people face today.
- We have to work with the regulators
Ripple [XRP] is known to be one of the cryptocurrencies which is on good terms with regulators and financial institutions. This is because of the nature of its operation, but also because Ripple never intended to work outside of the laws or circumvent them. Garlinghouse said the blockchain revolution has to take place from within the system so there’s no way that it can happen without assistance from and compliance with regulations and financial institutions. While most cryptocurrencies advocated down with the financial institutions and down with the government, they have to work together with these bodies for long-term sustenance and harmony.
- Not all digital assets are created equal
Every digital asset should be different from the other. It’s not just their market worth but what they allow the user to do. It is not the creation of digital asset but its goal and purpose that should drive crypto projects. Investors and users should understand this as well, for it would enable them to make a better decision about which coin to invest in and use.
The future of Ripple
CEO Brad Garlinghouse answered a few questions about Ripple and the XRP token as well. Although many have accused Ripple as being centralized, he clarified that Ripple is the central organization that runs the operation while the XRP ledger is a decentralized entity just like any other. Since Ripple has $60 billion worth of Ripple, they want to see it succeed and try to provide as much value to users as possible. He gave Ripple’s example when talking about the value of digital tokens relating to the problem they solve. Ripple is a platform which allows cross-boundary transfers to take place within four seconds and with a much smaller fee.
This solves the problem for people losing money in transaction fee when different fiat currencies are converted into a globally accepted fiat currency before being converted into their own currency by their bank.
While Ripple [XRP] has already partnered with Moneygram and Western Union, more of such partnerships could be in the making. Garlinghouse said that when regulators realize that Ripple is in full compliance with their rules they are pleasantly surprised, which is why Wall Street personnel are comfortable with it as well.
When both the endpoints are established financial institutions, then people are more comfortable using the technology. Although Ripple was never intended to be a cryptocurrency token as such, it is currently available in 60 exchanges across the world, with speculation that Coinbase is set to add Ripple to its inventory soon. Garlinghouse merely said about it that the decision is for Coinbase to make.