During a recent interview on CNBC, Garlinghouse claimed that Bitcoin was not the golden goose most people thought it would be. Rather, it set in motion innovations that are more efficient, one of them being XRP.
Bitcoin Is Not So Great
I think it’s 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.
He made this comment at the Money 20/20 fintech conference being held in Amsterdam, Netherlands.
XRP solves many issues that Bitcoin is not able to solve. For instance, the Bitcoin blockchain has a very low transaction speed. Besides that, integration with traditional finance and scalability are a major issue. The CEO said that XRP is faster than Bitcoin by a thousand times. In some cases, Bitcoin transactions have taken up to 42 hours to complete. However, this speed has improved in recent times. The transaction speed has dropped to as low as 13 times worse than XRP.
The Dominance of Bitcoin Will End
The Ripple CEO recently predicted that the dominance of Bitcoin would soon end because of the other digital coins with more use cases. This seems to be likely, especially when you check the dominance index of Bitcoin in recent days.
Ripple appears to be quite promising. However, there is little chance that it could overtake Bitcoin as an investment. The value proposition of Ripple is tied to the integration with traditional banking and provision of liquidity service for cross-border payments.
What Is Ripple?
XRP is dogged by speculation that it will be classified as a security. This would place it under the purview of SEC securities laws. The Ripple Company is subject to a class action suit from a person who lost money during the trade of the XRP tokens.
The lawsuit, which is led by Ryan Coffey, claims that the founder of Ripple made huge profits by selling XRP quietly to the public in what was an endless ICO. The two former SEC officials that are representing Ripple include Mary Jo White, who served as the SEC Chair at one time.
A former CTFC Chair Gary Gensler has been quoted as saying that the XRP is a non-compliant security. The debate over whether XRP is a security may have complicated that attempt by Ripple to be listed on Coinbase. The company allegedly offered to pay to be listed on two major US exchanges but its requests were turned down.
What do you think about the statement by the CEO of Ripple on the viability of the Bitcoin? Leave us your thoughts in the comments section below.