In an interview at the Stifel Cross Insight Conference, the head of Ripple, Brad Garlinghouse, called the idea of Bitcoin’s global dominance absurd and the desire to apply blockchain technology everywhere unjustified.
Brad Garlinghouse never tires of repeating that he does not consider XRP a competitor to Bitcoin, but every time he does not miss the opportunity to express his opinion about “digital gold”.
According to the businessman, part of his assets is stored in Bitcoin, but he does not recommend investing into it the last funds in the hope of profit. Bitcoin is not a panacea and not the future world currency, the head of Ripple is sure of this. Although, in his opinion, today it is too early to predict the role of cryptocurrency in the global economy, Bitcoin will definitely not become a single world currency. Not a single large economy will allow this, for one simple reason, which is stubbornly hushed up and not discussed in the general public.
The main problem of Bitcoin is the problem of centralization of mining.
The largest mining pools, which account for about 59 percent of mining, are located in China. They produce the majority of the hash rate; if we add to them the small pools that abound in the country, then the Middle Kingdom accounts for more than 75% of the total Bitcoin mining. However, no one can guarantee the independence of these miners and the non-interference of the Chinese government. According to Garlinghouse, there are few countries in the world that want to use money, the issue of which is controlled by China. This is financial suicide.
The CEO of Ripple believes that this development of events is incredible, and the best cryptocurrency in the world is XRP, since no one can compare with it in terms of transaction speed.
Brad Garlinghouse also shared his views on blockchain technology and its application. In his opinion, now they are trying to “attach” blockchain to everything and use it literally in all areas of activity, although this is absolutely unjustified. The main purpose of the technology is to resolve interactions between several parties to the process without intermediaries and in the shortest possible time. Blockchain will not be able to replace banks, according to Brad, but will make a huge contribution to the restructuring of the global financial system.
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