The Executive Director of Ripple: the majority of the cryptocurrency drop to $0
Brad Garlinghouse, the man behind the popular XRP token, believes that most of all cryptocurrencies will ultimately cost nothing.
In his speech at the Goldman Sachs Technology and Internet Conference, Arlinghaus said that most of the coins have no value and are traded exclusively on a speculative basis.
However, he believes that Bitcoin will remain in the long term as a repository of values.
Ripple CEO brad Garlinghouse himself is the Creator of the cryptocurrency (XRP), but this does not mean that he believes in each of the existing tokens.
Speaking to the audience of analysts and technologists, Garlinghouse expressed the opinion that most of the existing coins will never become a transactional currency, which means that their existence makes no sense. Of course, when it becomes clear, all of them will lose any value.
It is unclear what to use… It is not clear what the benefits and value are,”he told the audience,” Long – term value is determined by the benefit of applying the asset.
XRP, which peaked at $ 3.31 in January before falling to $1.12 USD at the moment, attracted investors ‘ attention because of its application in the ripple payment system. In fact, XRP is a token specifically designed to make fast and inexpensive international transactions between banks. From the point of view of Garlinghouse-this is the purpose and purpose of XRP.
The market capitalization of XRP is 40.1 billion dollars, which puts the coin on the third place in the list of CoinMarketCap. However, some have criticized the Ripple for the fact that the company kept a large part of the XRP in their reserves, leaving a considerable impact on the price of the coin. This contrasts with bitcoins, where inflation is determined by the rate at which miners generate new coins.
Although the position Garlinghouse may seem hard, given that his company became known thanks to the recent cryptobia, yet he has not written off all digital currency.
Garlinghouse made it clear that Bitcoin, which, he said, is 1000 times slower and more expensive than XRP, will still be used as a repository of values, similar to the role that is now assigned to gold. But, in his opinion, it will not be used for payments.
Bitcoin is designed to solve a completely different problem