Ripple CEO Brad Garlinghouse: 99.9 Percent of Crypto Trading Is Speculation 

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Tue, 10/08/2019 - 15:43
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Alex Dovbnya
The CEO of Ripple voices a shocking statistic about the crypto market to signify the importance of coins with real use cases (such as XRP)
Ripple CEO Brad Garlinghouse: 99.9 Percent of Crypto Trading Is Speculation 
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On Oct. 8, Ripple CEO Brad Garlinghouse made a bold Peter Schiff-like statement about 99 percent of cryptocurrency trading being the result of price speculations during his interview at The Economic Club of New York

"About $40 to $50 bln a day is trading in crypto. [...] That is a very liquid market. There is a lot of trading out there, but most of it is just speculations."    

Galringhouse claims that the hype got ahead of reality while commenting on the previous bull run, but he points out that crypto is still in the early stages of its development. 

Related
Ripple CEO Brad Garlinghouse Claims Bitcoin Is Unsuitable for Micropayments to Make a Case for XRP

Solving a real-world problem

He further adds that the value of any digital asset will be related to its utility in the world given that it aims to fix "slow and expensive" cross-border payments. The existing solutions like SWIFT fail to solve this problem, according to the Ripple boss, which subsequently puts his company in a great position. 

Related
Ripple CEO Brad Garlinghouse Partakes in Pompliano’s Podcast, Free Access Online 9 October

No need for SWIFT

While some might argue that Ripple's price volatility might prevent its adoption by financial institutions, Galringhouse says that their transactions are so fast that there is no need for a hedge like SWIFT. 

"With XRP, it's happening so fast that you don't really need to hedge it because you're in and out of it in a few seconds."      

Galringhouse admits that he didn't look at the price of XRP before the interview. During his appearance with CNN, he insisted that Ripple could control the price of its token in the price of manipulation accusations. 

Related
Ripple Rolls Out Xpring Developer Platform for Easy XRP and Fiat Payments

The centralization problem

Galringhouse doesn't deny that Bitcoin is decentralized, but this word comes with an asterisk given that 80 percent of mining operations are based in China, the authoritarian country that attracts miners with its cheap electricity. The BTC Blockchain could be changed if somebody pulls off a 51 percent attack. 

However, as reported by U.Today, Bitcoin Core developer Greg Maxwell said that the 51 percent couldn't be fixed without making Bitcoin more centralized. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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