Author: Gan Jia Ci
It comes as no surprise that Brad Garlinghouse is an outspoken Bitcoin detractor. In the past, the Ripple CEO also firmly declared that Bitcoin will not become a global currency.
Once again, speaking at the 2018 Stifel Cross Sector Insight Conference, Garlinghouse dissed the likes of the coin, stating that it is “really controlled by China”.
During an interview with Stifel Tech Analyst Lee Simpson, he explained, “There are four miners in China that control over 50% of Bitcoin. How do we know that China won’t intervene? How many countries want to use a Chinese-controlled currency? It’s just not going to happen.”
Garlinghouse continued, “Bitcoin is not the panacea we thought it would be.” He compared it to their domestic coin, XRP. Describing the latter as “the best digital asset for settlement,” he claimed that XRP only requires four seconds to settle a transaction while Bitcoin takes 45 minutes.
That is not to say that Garlinghouse does not own a few Bitcoins himself. He was quick to add that he was a Bitcoin investor, explaining, “Many people consider it as digital gold. I acknowledge, I’m long crypto. I’d advise folks to only invest in crypto only what you’re willing to lose. It’s early to tell how it is going to play out. I think it’s a pretty good investing strategy.”
In addition, he also rebuked claims that blockchain technology will be enough to disrupt banks. “There’s a lot of blockchain craziness, but there are three indicators of market winners,” he explained, referring to Product Market Fit, Customer Traction and Regulatory Engagement.
According to Garlinghouse, “Blockchain will not disrupt banks” but “will play an important role in the way our system works. It’s a short-sighted view.”
Speaking of Ripple’s end goal, Garlinghouse explained that he prioritises the consumer experience over the crypto market.
“When I think about the transformation, it is fundamentally changing the way millions participate in banking. We can fundamentally change the way this works, to bring an entire population up a step in the system.”
In February, BitMex reported an analysis of Ripple, stating that the “consensus process is centralised” and “is therefore perhaps devoid of any interesting technical characteristics, such as censorship resistance, which coins like Bitcoin may have.”
Ripple is currently the third leading coin in the cryptocurrency market, with a market cap of $21.7 billion as reported on CoinMarketCap.