Ripple is on the verge of generating revenue to support the XRP price on cryptocurrency exchanges. Several payment services companies and financial institutions have already inked deals to use ripple’s products – which they believe will help in advancing the transaction times and lowering costs.
The increasing payments services companies in RippleNet is giving market pundits and analysts more confidence in Ripple’s future.
However, Ripple’s CEO has painted a bleak picture for cryptocurrencies; predicting the prices to crash shortly to zero.
Why Is Ripple Boss Brad Garlinghouse Substantially Bearish?
Brad Garlinghouse doesn’t have strong confidence in digital currencies. The CEO believes that it could be difficult for all cryptocurrencies to survive; he attributes the potential crash to the significant price volatility and unregulated nature of digital currencies.
He said, “It’s not clear what value proposition is, but the utility of that asset will dictate the long-term value.”
Brad is probably correct in correlating the value of the asset with the utility of that asset. Cryptocurrencies could only succeed if they are used as a store of value, instead of using it as a tool for making payments.
The threat of a lack of underlying value could slump virtual currencies prices to zero, analysts say.
Therefore, Brad thinks cryptocurrencies must have to sell their software and other products to banks and payment services companies to back their price on cryptocurrency exchanges.
But He’s Bullish on Ripple’s Future Fundamentals
Brad is optimistic that major banks could also use Ripple’s xCurrent payment software and other products for cross-border payments instead of the industry standard SWIFT software.
He said: “the best way to bring cryptocurrency to the mainstream is to “work within the system” as opposed to using cryptocurrency to circumvent government regulation and financial institutions.”
He also compared ripple with Bitcoin (BTC). According to his estimates, the bitcoin cost users almost $13 for each transaction, and it takes around three to four hours to complete the transaction. On the other hand, XRP has the potential to make 1,000 times faster transactions than Bitcoin, while Ripple costs only a few cents for each transaction.
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