Categories: Ripple

Bitcoin is not the ‘panacea’ people thought it would be, Ripple CEO says

Click here to view original web page at

Bitcoin is not the "panacea" to solve the problems that people thought it would, Brad Garlinghouse, the CEO of blockchain start-up Ripple, told CNBC in an interview that aired Tuesday.

Ripple is a San Francisco-based company that is developing a network for faster global financial payments. XRP is the digital token that financial institutions on the network can use to transact quickly. The currency and the company were founded by the same people.

XRP is traded on cryotocurrency exchanges and one is currently worth 65 cents. Garlinghouse, who emphasized that Ripple is independent of the XRP token, said bitcoin will have a role in the future, but not one that will see it solve major problems, such as becoming a global currency.

"I think it's (bitcoin) not going to be the panacea that people once thought it would be, where it would solve all of these different kind of problems... Instead, you're seeing specializations of different kind of ledgers, different kinds of blockchains," Garlinghouse told CNBC at the Money 20/20 fintech conference in Amsterdam, Netherlands.

He explained that the bitcoin blockchain, the technology that underpins the cryptocurrency, is "quite slow," whereas XRP transactions are "a thousand times faster."

The average transaction time for bitcoin was 42 minutes as of Tuesday, according to data tracked by XRP has a transaction time of four seconds, according to Ripple's website.

While many see XRP as a rival to bitcoin, Garlinghouse said it's not necessarily a case of one digital coin versus another.

"Well, I don't really think about it as one versus the other. I mean, it's actually unfortunate, I think, that there's some people in this, the crypto space, the blockchain space — for them, it's almost a holy war of one versus the other. I don't look at that at all."

"I think that what we're seeing is the overall growth of this space and there will be many winners," he added.

Bitcoin is the world's largest cryptocurrency by market capitalization. In another recent interview with CNBC, Garlinghouse said that cryptocurrency prices are influenced by bitcoin, but that could soon change as people realize the differences between different digital coins.

Elsewhere, Ripple has been hit with a class action lawsuit by a person who allegedly lost money buying and selling XRP. Ryan Coffey claims that Ripple violated U.S. securities law.

In 2013, Ripple Labs created 100 billion of the XRP coins in existence. Ripple owns about 60 percent of those 100 billion XRP, some of which are owned by the blockchain's founders. The lawsuit alleges that the founders "earned massive profits by quietly selling off this XRP to the general public, in what is essentially a never-ending initial coin offering (ICO)."

An ICO is a way for a company to issue a new digital token in exchange for money in order to raise funds. Garlinghouse called the lawsuit "outrageous."

"Here's somebody who held XRP for, I think, two weeks... and is making some claims," he said.

"Whether or not XRP is a security is not going to be dictated by one lawsuit... I think it's very clear that XRP is not a security, it does exist independently of Ripple the company. If Ripple the company is shut down tomorrow the XRP ecosystem would continue to exist. It's an independent, open-sourced technology.

"From an ownership point of view, owning XRP doesn't give you any ownership of Ripple equity. And also, as we just talked about, XRP has a lot of utility, so to me it's quite different than what a security you know looks like and I think ultimately we'll find that conclusion."


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by

Recent Posts

Is Boris Gone Landslide and How Would Bitcoin, Markets, React?

The sun has returned on London streets as Boris Johnson, the unelected British Prime Minister, once again covers our TV… Read More

3 hours ago

California Man Admits Masterminding $25 Million Bitcoin Launder Fest

A Los Angeles man has plead guilty to a multi-million money laundering scheme. | Source: Shutterstock By CCN Markets :… Read More

3 hours ago

WORLD NEWS: This Week in Blockchain and Crypto

This week has seen interesting developments around the globe on crypto projects and governments interest in the digital assets space.The… Read More

3 hours ago

Bitcoin Circuit: Is it a scam? Read our comprehensive review!

If you are looking for ways to speculate on cryptocurrencies, then I am sure you have thought about signing up… Read More

3 hours ago

Model: Bitcoin (BTC) Price to Surge 100% to $20,000 by May

In just around nine months, Bitcoin (BTC) will see its next block reward reduction — dubbed “halving”. Despite this rapidly… Read More

3 hours ago

Early Bitcoin Contributor Projected $10 Million BTC Price 10 Years Ago

Share Tweet Send Share Just a week after the bitcoin genesis block in January 2009, computer scientist Hal Finney published… Read More

3 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More