Ripple boss Brad Garlinghouse has said he does not think all cryptocurrencies will survive. If he’s talking about his own cryptocurrency then some would agree wholeheartedly.
His warning comes after Bitcoin has seen its value plunge throughout 2018 from a record high of nearly $20,000 in December 2017 to now just over $9,000. However, the value has been surging upwards this morning and many crypto observers believe it could hit over $10,000 later today.
Speaking at the Goldman Sachs’ Technology and Internet Conference yesterday, Mr Garlinghouse said he believes “most” digital currencies will eventually lose all their value.
“It’s not clear what the use case is. It’s not clear the what value proposition is. Long term value will be dictated by the utility of that asset.”
He warned cryptocurrencies are too unpredictable to be widely used due to largely being unregulated and with very volatile price markets. The lack of regulation means the value of Bitcoin can be quite volatile.
In 2018 a number of countries have introduced new rules for using the original cryptocurrency which is believed to have affected its market performance. South Korea recently introduced a raft of measures aimed at regulating Bitcoin. A ban on anonymous trading was implemented by the Asian power in a bid to crack down on all possible criminal activities and market manipulation tactics such as wash trading.
Meanwhile, India’s Government has said it does not consider cryptocurrencies to be legal tender and will try to phase out payments using the online money.
Bitcoin is not the only cryptocurrency to suffer a drop in value after a period of success. Mr Garlinghouse’s own cryptocurrency Ripple has seen its value plummet in 2018. In January Ripple hit it’s ATH and was worth over $3.70 but is now worth just over $1.00.
However, Ripple’s XRP gives the company more control over its value than the original cryptocurrency. With a large amount of currency kept in company reserves, Ripple can limit fluctuations in the price of its online money.
Despite Mr Garlinghouse’s fears that most cryptocurrencies will drop to zero, he does still believe Bitcoin will end a success. Instead of acting like currency the crypto boss believes it could be used to store value – similar to how gold is currently used – rather than for making payments. However, this view is seen as being rather outdated with the advent of SegWit and Lighting Network again making Bitcoin payments both cheap and fast.
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