The CEO of Ripple Brad Garlinghouse during an interview with CNBC yesterday claimed that Bitcoin doesn’t have what it takes to be the global currency that some people think it will be. He made this statement at the ongoing Money20/20 Europe, which is being held this week in Amsterdam, stating that “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 kinds of problems. Instead, you’re seeing specializations of different kind of ledgers, different kinds of blockchains.”
His point contradicts what Apple co-founder Steve Wozniak said on Monday after he claimed that Bitcoin could become one-world currency, a prediction that was made by Twitter CEO Jack Dorsey a few weeks back.
Even though he claims that it isn’t about comparing one coin to another, Garlinghouse commented that XRP transactions are “a thousand times faster” than those of Bitcoin, which according to him are very slow.
He is right in his assertion as Bitcoin which is the cryptocurrency with the largest trading volume is far slower compared to other top cryptocurrencies. The average BTC transaction time is roughly 42 minutes according to data from Blockchain.info. This is very slow compared to the four seconds usually recorded by XRP.
The slow transaction speed of Bitcoin can be viewed as a result of it using a blockchain technology that hasn’t been successfully scaled to allow for a wider user base. The Ripple transactions meanwhile are conducted on the Ripple protocol, not on a blockchain.
Ripple is slowly working towards a global adoption as a cross-border payment service with mainstream financial institutions, with the company offering products that would make it easy for large transactions to be carried out across borders from one fiat to another within seconds, using the XRP token as a “bridge” asset.
Garlinghouse is of the view that the ideology of having only one cryptocurrency isn’t good if the industry is to move forward. He stated that “There’s some people in this, the crypto space, the blockchain space — for them, it’s almost a holy war of one versus the other. I don’t look at that at all.”
Talking about the adoption of cryptocurrencies, he believes that there would be many winners if that happens. In a recent interview with CNBC, Garlinghouse claims that he expects the influence of Bitcoin price on the prices of other cryptocurrencies to weaken as more investors explore other options.
He stated that “I think that what we’re seeing is the overall growth of this space and there will be many winners.”