Ripple CEO: Most cryptocurrencies will go to $0
Ripple
- Ripple CEO Brad Garlinghouse, the man behind the hot XRP token, said he expects 'most' cryptocurrencies will eventually go to zero.
- Speaking at the Goldman Sachs Technology and Internet Conference, Garlinghouse said that most coins don't have a value proposition, and are being traded solely on a speculative basis.
- He still expects bitcoin, at least, to be around long-term, as a store of value.
SAN FRANCISCO -- Ripple CEO Brad Garlinghouse may be the man behind the popular cryptocurrency XRP, but that doesn't mean he has faith that every single token will survive.
Speaking to an audience of analysts at the Goldman Sachs' Technology and Internet Conference on Tuesday, Garlinghouse said he believes "most" cryptocurrencies will eventually lose all of their value. In short, he believes that most of these coins are simply not very useful as a transactional currency, meaning there's no reason for them to exist.
"It's not clear what the use case is. It's not clear the what value proposition is," he told the audience. "Long term value will be dictated by the utility of that asset."
XRP, which peaked $3.31 in January before falling to $0.99 at the time of writing, has caught the eye of investors because of its use within the Ripple payments system. Essentially, XRP is a token very specifically intended for doing fast and low-cost international transactions between banks. To Garlinghouse's point, that is the purpose of XRP.
XRP holds the third highest market cap of any cryptocurrency, at $40.1 billion. Still, some have criticized Ripple for holding the majority of XRP in company reserves, thus giving the company more influence over the price of the coin. This is in contrast to bitcoin, where inflation is determined by the rate at which "miners" generate new coins.
Though Garlinghouse's stance may seem rigid for someone whose company has come into prominence thanks to the recent crypto-craze, he hasn't written off all digital currencies.
Garlinghouse gave nod to the idea that bitcoin - which he says is 1000 times slower and more expensive than XRP - will still be used as a store of value, similar to the role that gold has played for . But it won't be used for payments, in his opinion.
"Bitcoin is going to solve a different problem," he said.
Get the latest Bitcoin price here.>>
The Bitcoin 101 Report by the Business Insider Intelligence Research Team.
Get the Report Now »
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Having an regional accent can be bad for your interviews, especially an Indian one: study
- Dirty laundry? Major clothing companies like Zara and H&M under scrutiny for allegedly fuelling deforestation in Brazil
- 5 Best places to visit near Darjeeling
- Climate change could become main driver of biodiversity decline by mid-century: Study
- RBI initiates transition plan: Small finance banks to ascend to universal banking status
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market