Brad Garlinghouse Considers China as the Controller of Bitcoin
Brad Garlinghouse, CEO Ripple, took part in a question and answer round at the 2018 Stifel Cross Sector Insight Conference. He gave answers to many intriguing questions asked by Lee Simpson, Stifel Tech Analyst.
In the initial part of the session, he said that blockchain wouldn’t be having a negative impact on financial institutions. According to him, many people have tried to use the technology but a market winner can only be spotted by three indicators:
- Customer Traction
- Product Market Fit
- Regulatory Engagement
He further added that banks would not be harmed by blockchain, but the technology will transform the way our system operates. In a shocking statement, he also declared that China controls bitcoin and asked several questions about the usability of the poster boy of cryptocurrencies.
He then told the crowd that bitcoin is not the magical solution to our financial issues as we thought it would be. The CEO also backed XRP saying that it is the future of liquidity management in the market. As of now, his focus is primarily on emerging crypto markets in the world.
Backing his currency, he informed that XRP was acknowledged as “the best digital asset for settlement.” While comparing his coin with the market leader, he claimed that XRP only takes 4 seconds to settle a transaction whereas bitcoin takes 45 minutes to perform the same process. Being optimistic he stated that banks will always choose a cheaper and more efficient system. As XRP is a superior product at an exceptional price, a bank will use it in any condition.
He added, “A number of prominent people, even Steve Wozniak, has said that he sees a world where Bitcoin is the primary currency. I think that’s absurd. I don’t think that any major economy will allow that to happen. By the way, it doesn’t make sense.”
Garlinghouse then said that only four miners from China produce 50 percent of the bitcoin which essentially describes their control over the digital currency. He then asked that how many people would be comfortable with a China owned currency.
At one moment he advised investors to invest an amount in virtual currencies which they are ready to lose. Nobody knows the future of cyber coins which makes it a better-investing strategy, he said jokingly. He then asked the crowd to ignore everything he said which made them burst into laughter.
The CEO said that he does not aim for the digital asset market and aims for millions of people who are underbanked or unbanked. The ongoing transformation will change the way people interact with a financial entity. He said that the fundamentals of the system could be adapted to upgrade the users of the service.
Ripple is among the more recognized virtual coins, and its value is expected to increase by the end of the year.
Concluding the interview, he stated that we are at the initial stage of a very long marathon. His claims should be conceived with a pinch of salt as the CEO was basically promoting his currency more often than necessary.