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Ripple’s CEO Brad Garlinghouse shares stance on the real value of cryptocurrencies, regulatory framework and more

Priyamvada Singh

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Ripple CEO Brad Garlinghouse shares stance on the real value of cryptocurrencies, regulatory framework and more
Source: Pixabay

On 1st September, the Chief Executive Officer of Ripple, Brad Garlinghouse spoke with Standford Legal and discussed some of the significant subjects in the cryptocurrency space. Here, the main focus of the interview was the regulatory aspect of cryptocurrencies.

On being asked of his opinion on the illegal transactions in Bitcoin and cryptocurrencies, Garlinghouse stated that many industries begin in the darker parts of the society. Eventually, people start to realize the benefits and productive use cases of that industry.

He further said that the world of cryptocurrencies originated from the ideas of anti-governance, anti-establishment, anti-banking and so forth, with anonymity at the center of it. Regarding the existence of Ripple in this space, the CEO stated:

“…that’s in some ways for what the business ripple is building, that’s a frustrating thing because it takes time and education to explain, there’s a lot of misinformation. There real-world use cases as we talked about earlier with its payment settlement cross-border or security settlement where you can use these techniques to have real-world positive benefits on economies, on consumer experience, business experience.”

Subsequently, Garlinghouse believes in the process of authorization and said that the anonymity dynamics in the technology is subject to concern. He also shared his stance on KYC [Know-Your-Customer], which he sees as a positive procedure in the regulatory framework.



The discussion moved ahead where Garlinghouse spoke about the relevance of Ripple’s service and cryptocurrencies in countries with unreliable banking systems. In his opinion, fiat currencies work well and will be a preference in the consumer world for the next decade. However, looking at the countries where the scenario of the fiat currency is weak, such as hyperinflation, cryptocurrency will be much easier to hold for survival. In his words:

“If I were a consumer experiencing hyperinflation, would you rather hold a cryptocurrency or you’d rather hold your fiat currency? And a lot of those cases, you’re seeing people take pesos of various sorts and saying – I’d rather hold this because it’s a better asset to hold in terms of a potential appreciation and lack of inflation.”

Lastly, the panel demanded an explanation about the value of these cryptocurrencies, since the prices keep fluctuating unpredictably. Garlinghouse stated that the long-term value of any digital asset is correlated with its utility of solving a problem. For instance, some cryptocurrencies intend to solve the problem of anonymity, some aim at solving a security settlement issue, therefore, the ultimate value of a digital asset in the market comes from its utility.





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Priyamvada is a full-time journalist at AMBCrypto. A graduate in Journalism & Communication from Manipal University, she believes blockchain technology to be a revolutionary tool in advancing the future. Currently, she holds no value in cryptocurrencies.

XRP

Has XRP decoupled from Bitcoin? Is it due to immense pressure from manipulators?

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Hash XRP decoupled from Bitcoin? Is it due to immense pressure from manipulators?
Source: Unsplash

Opinion: Bitcoin, the first cryptocurrency, has had over ten years to grow. However, other altcoins did not have the liberty, due to which Bitcoin exerts its dominance over almost all altcoins in the ecosystem, be it Ethereum, XRP, or Cardano. The price of altcoins generally tends to rise if Bitcoin’s price surges rapidly. The same can be said about the downtrend as well, which is why altcoins are said to be coupled with Bitcoin.

However, the recent buzz on crypto-twitter is that XRP is on the verge of decoupling from Bitcoin. A Twitter user @XRPMOONSHINE tweeted:

“DO ME A FAVOR OPEN UP A BTC/USD CHART AND AN XRP/USD CHART. THEY HAVE DECOUPLED AND ARE MOVING DIFFERENTLY.”

In a very general sense, the comparison of the price change of XRP and BTC gives a crude understanding of whether the prices have actually decoupled or not. Hence, the daily chart attached below shows the price of BTC and XRP against the US Dollar and extends from August 2018 to April 2019. The price of XRP seems to be following a lag from the price of BTC and do not necessarily mean that it has decoupled.

However, there are timeframes where the price of XRP has moved completely unrelated to that of Bitcoin. For example, the meteoric rise of XRP from September 18 to 22 was far higher than the price pump of BTC over the similar timeframe; but the drop of XRP from November 18 to December 16 was exactly the same as that of BTC’s.

Furthermore, XRPMOONSHINE suggested that XRP price was being manipulated. He tweeted:

“It is being manipulated to keep it from rising. For example look at XRP/BTC pair. Keeping it under the down sloping resistance from .80 in September. Thats what I mean by Suppressed, Although im expecting a fairly large move to the upside before 4/24/19.”

The “idea” of the price of XRP being manipulated is not unpopular within the XRP ecosystem as Peter Brandt, a famed trader, suggested the same in one of his tweets.

Brandt tweeted:



Conclusion

XRP may have started to decouple from Bitcoin, but it surely hasn’t decoupled completely. The notion that XRP is being manipulated to keep its price below certain levels can also not be confirmed without proof.





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