Bitcoin's Influence over Altcoins Coming to End, Says Ripple CEO
Brad Garlinghouse believes the market will move beyond speculation when people understand the different features and use cases of cryptocurrencies
Bitcoin’s (BTC) influence over the prices of other cryptocurrencies may start to wane soon, believes Brad Garlinghouse, CEO of California-based provider of blockchain-based money transfer services Ripple.
Speaking to CNBC on Wednesday, Garlinghouse claimed that people will soon gather a better understanding of the use cases that each digital asset has to offer, allowing altcoins to stop following the Bitcoin price trend.
“There’s a very high correlation between the price of XRP and the price of bitcoin, but ultimately these are independent open-sourced technologies. It’s early, over time you’ll see a more rational market and behaviors that reflect that,” Garlinghouse stated.
He went on to compare Bitcoin to now-defunct music service Napster, which changed the rules of digital music without actually succeeding.
“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,” he said.
Further commenting on the market, the CEO of Ripple, which runs the XRP digital currency, predicted that only around 1% of the more than 1500 cryptocurrencies in circulation will exist in a decade. Those that “don't actually solve a real problem are going to get washed out," Garlinghouse said.
Ripple Expands but Coin Remains Volatile
XRP is the third-largest cryptocurrency after Bitcoin and Ethereum (ETH) with a market cap of nearly USD 24 billion. It is the native token of RippleNet, a blockchain-based solution that provides easier, faster and cheaper money transfers as compared to traditional bank transactions and money transfer services.
Ripple has cooperation agreements with major sector players, including Santander, UBS, American Express, MoneyGram, and Western Union, to name a few. Garlinghouse noted that the company had a record first quarter, inking 20 new contracts.
Most recently, Ripple announced this week it has signed a deal with the National Bank of Kuwait (NBK) and the Kuwait Finance House (KFH).
And while Ripple’s payment network is proving popular, the altcoin has not escaped the clutches of a volatile market. In the first quarter, XRP lost 70% of its value, falling from a January high of USD 3.84. During the same period, Bitcoin dropped around 50%.
On Friday morning (UTC), XRP traded at around USD 0.62, up 0.2% for the past 24 hours. At the same time, BTC was 0.1% up at USD 7550.
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