Not many people can generate the amount of excitement among ‘cryptonites’ as Ripple chief executive officer, Brad Garlinghouse. Speaking on Wednesday to CNBC’s Power Lunch, Garlinghouse declared that Bitcoin could be on the verge of experiencing an influence and price downfall in the cryptocurrency community as markets are gradually becoming aware of the different currencies and alternatives available to them.
When Bitcoin was initially offered in 2008, it was a game changer. For the first time, people could initiate transactions, trade, and trust in a medium of exchange without having banks or governments behind it. And with Bitcoin being the initial, most known, and largest virtual currency by market capitalization other cryptocurrencies including XRP are highly interdependent to it even though they are independent open-sourced technologies.
That’s something Garlinghouse believes is going to change over time as more people become aware of the other cryptocurrencies available through media coverage.
First, forward to 2018, Bitcoin, the almost a decade old currency, is not the default currency of choice in moving value. It is slowly evolving to be more of an asset than a currency; investors trade it like stocks or bonds, rather than as a medium of exchange of daily goods and services.
Its transaction costs have reached $4.50 taking days to complete a transaction instead of a few minutes. Garlinghouse jokes,
“How are you going to use Bitcoin to buy a cup of tea? By the time the transaction is complete, it’s going to be hours later, your tea’s gonna get cold”
Be that as it may, Ripple, the San Francisco-based company, has developed a speedier financial payment system that enables cross-border transactions with XRP being the electronic coin financial institutions use on to transact swiftly.
Barely a month passes without Ripple making huge inroads on Bitcoin’s influence. On Wednesday, Ripple signed a partnership deal with Kuwait’s largest bank (The Kuwait Finance House) adding the financial institution to its long list of partners such as MoneyGram and Visa that are now piloting XRP for cross-border transactions.
As some countries introduced new regulations and rules for using cryptocurrency early this year, Bitcoin, XRP, and other digital currencies took a beating in their market performance with the market capitalization falling by more than 50%. XRP was the worst performer shedding 70% of its value and Bitcoin losing about 50% in those few months. However, with large amounts of Ripple’s currency kept in their reserves, price fluctuations are kept to a minimum with the company controlling the currency’s value.
Last month, South Korea introduced a raft of requirements including banning all anonymous trading Bitcoin allows on its platform in a bid to neutralize all possible criminal activities. Also, the Indian government refused to acknowledge cryptocurrency as a legal tender saying they were going to put measures in place that are going to phase out payments using the virtual money.
Ripple does not operate with the same level of anonymity that bitcoin does, making the virtual coin more favorable to investors and banks. With over 100 financial institutions around the world using the blockchain, Ripple’s dominance seems to be on the rise challenging Bitcoin’s influence.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Christopher Michel via Flickr
Reasons Why 2019 May Be A Great Year For Crypto
The new year was always considered to be a time of new beginnings, where people can reflect on the past and learn from their mistakes in order to be better in the future. The same is true for the world of crypto, and investors around the world are hoping for 2019 to be better, more profitable, and to have more success than 2018.
The hope for the future is even more important when we consider all the negative development in 2018. There were numerous high-profile hacking attacks, two market crashes, with a strong bear market in between. Not to mention that some of the biggest projects that may have brightened the year a bit ended up being delayed.
With that in mind, it is understandable why investors are looking forward to the new year and all the potential development that it may bring. In fact, there are several reasons why they should be excited about 2019.
1) Bearish market to loosen its grip
The first reason why 2019 can be a good year digital currencies is that it may finally break free of the bearish grip that has been felt ever since last January. Following the first market crash, the bears settled in, and the prices kept falling for an entire year. The market attempted to shake off the negativity on several occasions, with the biggest one being…
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2018 has been a pretty bad year for digital coins, and after the initial market crash that occurred a year ago, everyone was expecting a bull run that will fix things. Obviously, it never arrived, and instead of that, all that crypto market experienced was an entire bearish year and another crash in mid-November.
Now, however, it is a brand new year, and attempts to shake off the bears’ grip can be seen even in these first two weeks. The market is still struggling and mostly losing value, rather than gaining, with most coins being in trouble once more. Still, a lot can happen in a year, and most investors remain optimistic regarding 2019. Here are some of the coins that are believed to have tremendous potential, and to be the hope of this year.
Of course, Bitcoin comes first. This is the first cryptocurrency which is still dominating the market, with no other coin being even close to its market cap or price. BTC is the coin that has reached the most prominent heights, and it also lost the most in the previous year. However, there is still hope, as there are several projects and events scheduled for this year that might turn things around for the number one coin.
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Crypto projects have gone through several crucial periods of development, and while it is fascinating to watch their progress to maturity, a lot of investors are becoming impatient. During the first few years, they were barely known, only talked about in specific groups, among those developers and investors who had the luck to find out about them in the early days.
The next several years, altcoins started appearing, and the voice of cryptocurrency slowly started to spread. Then, there was a period of hype, when crypto exploded, and the entire world finally learned about this new technology that promised to change the world. Naturally, the overhype led to a market crash and price correction that we experienced last year, but the impact was made, and the world is still talking about them on a daily basis.
However, now is the time for cryptos to deliver on their promise, grow up, and start showing results. There are high expectations for many projects, but for various reasons, they have yet to deliver, and many are hoping that 2019 will be the year when they finally do it. Let’s see which 3 crypto projects really need to show results, and soon.
1) Ethereum (ETH)
Are you surprised to see Ethereum at the first spot? The project has been a top cryptocurrency for years, why would it be in danger now?…
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