Amidst all the hype and excitement surrounding the much anticipated CNN interview with Ripple CEO Brad Garlinghouse, as expected the usual XRP hype masters got it wrong.
No major announcements about world domination or partnerships with the Galatic Empire etc, what we did hear however were some interesting angles that have rarely been ‘officially’ acknowledged.
Any digital asset is going to be derived from the utility it delivers, there is a lot of hype in the crypto market space, we have seen a lot of attention around Facebook’s Libra coin but that is still just a white paper it isn’t actually live & has not even launched yet
As Brad explained the hype tends to get carried away, the real value comes from real usage and real-world utility.
Unlike many projects out there, XRP and Ripple have signed well over 200 companies, banks, and financial institutions with many utilizing the speed and savings right now.
When those banks and companies gain confidence in the tech, xCurrent switches to xRapid, liquidity and volume skyrocket, so too does the price of XRP.
HARD AS FORK – Ripple CEO Brad Garlinghouse explained that XRP as an open-source can be hard forked much the same as Bitcoin.
For example, Ethereum was hard forked when the DAO noted a vulnerability in its code had been hacked, this fork was named Ethereum Classic.
People can take XRP, an open-source technology & hypothetically they could fork that if hey chose to do so
Bitcoin has seen many such changes to its code and the creators simply rename it, Bitcoin Diamond, Bitcoin Cash Bitcoin whatever, you get the idea.
Do not despair though, this would not spell the end for your hard bought XRP investment, the banks that have signed up to use Ripple Tech will only use Ripple Associated technology or tokens.
This is simply taking a great idea, sticking a new name on it and saying it’s yours and it is better because, raspberries. Exactly.
Ripple Better Than Bitcoin?
Many in the XRP community say Brad makes reference to XRP being better than Bitcoin, this is simply not true.
As Brad explains, Bitcoin is Gold 2.0 and his own investment is not a short term speculative one, its values will increase to rediculous highs in the coming years.
Bitcoin is very good at solving the store of value issue, but XRP transactions are about 1000 times faster & 1000 times cheaper
Brad Garlinghouse on CNN
The two simply differ in what they are able to offer utility wise, XRP offers secure, massively scalable 3-second transactions costing fractions of pennies.
Bitcoin, on the other hand, is a store of wealth and cannot compete on the same level with up to 12 minute transactions times and far higher transaction fee’s.
Ripple Don’t Dump
Brad went on to discuss claims from some in the XRP community, that Ripple dumps its own tokens held in Escrow onto the market and this is what drives down the price.
If you watch the interview, in two parts below you will realize that Ripple does actually sell their XRP holdings but to major players, institutions or mega-rich investors.
Ripple owns a lot of XRP we are very interested in the success of XRP but the accusations of us dumping, it’s not in our best interests to do that we are clearly in interested in a healthy successful ecosystem.
Every asset class has high rolling investors, they buy over the counter, they buy bulk and the displacement is not picked up by the exchanges, and essentially the official price remains unaffected.
This is why Ripple can be doing so incredibly well as we report, yet the price does not change.
Will the Price Ever Increase?!
The CEO of Ripple was then asked about institutional or wealthy investors and whether they are buying XRP for a cheaper rate over the counter.
As we have explained many times this is the reason we continually get good news stories and signings to Ripple Tech every week, yet the price remains unchanged.
There are timers when we work with institutional investors who might say ‘Hey we want to buy ten million dollars worth of XRP’ (at a cheaper rate). But we have some lockups that would stop them from dumping that XRP onto the market so we would hypothetically have restrictions on that
It is mainly for this very reason and the very wealthy like it that way, all the fear, and uncertainty keeps everyday investors out of the market and stops us from getting wealthy too.
Effectively what Brad is saying in a polite way is that Ripple has no real control over this selling off of lower-priced bulk XRP.
All of this eventually comes out in the wash, however, once confidence, liquidity, and usage build the whales will no longer be able to affect the price as it skyrockets.