Brad Garlinghouse, CEO of Ripple, says that 99% of all cryptocurrencies on the market will ultimately not be worth anything in a new interview with Bloomberg on November 5.
One of the first questions asked during the interview is whether there are too many cryptocurrencies on the market to which Garlinghouse answers:
I agree with you, there are too many. There are more than 3,000 different digital assets that are traded daily.
I have said before that I think 99 percent of all crypto is likely to go to zero, but there is that one percent that is aimed at solving real problems for real customers and can do that on a scale, and that will be groundbreaking.
Next, Garlinghouse is asked about the volatility of cryptocurrencies and the chance that digital currency may be worth much less after it is transferred:
It appears that that story is a fabrication. Volatility is a calculation of both time as volatility. A transaction with SWIFT can take two to three days, while a transaction with XRP (XRP) takes a few seconds. It appears, therefore, that the volatility of a SWIFT transaction is much higher than that of an XRP transaction.
Garlinghouse is also asked about the big XRP sell-offs and whether people should worry about it. However, Garlinghouse avoids demand and says that he does not look at the price of XRP in the short term.
Of course, Garlinghouse is also asked for his opinion on libra, the upcoming stablecoin of Facebook. Garlinghouse says that he finds the approach of Facebook good, but that Facebook has been “naive” in his approach with regulators:
I think all financial systems are built on trust, but I think Facebook suffers from a lack of trust which makes it difficult for libra. The good thing is that important figures like Mark Zuckerberg have said they will not go live until everything is clear.
Finally, Garlinghouse is asked what he thinks the ecosystem will look like in a year’s time:
That’s a good question. I think the system will continue to grow. First the market was used for illegal activity such as Silk Road, then it became a speculation bubble that we will continue to see in the coming year and then the focus will be on utility and how these digital assets can solve real problems.
Ripple is currently involved in a lawsuit about whether XRP is a security and whether it has therefore violated US securities law. Ripple filed a motion for rejection at the end of September because the case was already barred.
The SBI Group recently announced that the Japanese Money Tap will collaborate with PayPay for which the XRP ledger will be used.
The annual SWELL conference will be held in Singapore on November 7 and 8, a major event organized by Ripple.