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Replying to a question posed by the host, Garlinghouse said that there are too many cryptocurrencies in the market right now. He noted that there are almost 3,000 digital assets that are being exchanged on a daily basis.
According to Garlinghouse, a reason why there is a proliferation of digital assets in the market today is that whenever there is problem, a lot of startups jump in and claiming to sell the solution to that problem. In the context of digital currencies, the hype in the crypto ecosystem has immensely contributed to the rise of new digital currencies to address payment problems on this scale.
“I have said publicly before that 99% of crypto probably goes to zero, but there is that 1% that is focused on solving a real problem for real customers and is able to do that at scale.”
Ripple’s CEO thinks that only those ‘problem-solving’ companies are expected to thrive, companies which hold a long-term view of the future and are focused on their mission statement to provide exactly what their targeted customers want.
The 1% percent of the companies he keeps referring to as “Bulls” are expected to be the game changers in the industry with a consistent focus on enhancing their digital assets ability to be transferred across borders within seconds.
SWIFT and Bitcoin Mining in China
Furthermore, Garlinghouse also made comments on his company’s archrival SWIFT’s recent attempt to develop an instant cross-border payment platform, and said that SWIFT had failed to keep up with the momentum of improving cross border payments. This might be the reason why financial institutions are hesitant to adopt it as a standard payment solution.
Garlinghouse was confident that as long as Ripple is out there in the world, SWIFT would never really thrive in the market. Ripple’s coveted offering and the most exceptional selling point is its ability to transfer funds within seconds.
Another reason why banks did not like SWIFT, said Garlinghouse, is its extreme volatility. While Ripple is in command of its market value, SWIFT is not.
He also discussed the decentralization of Bitcoin(BTC)trade. While he agreed that in theory Bitcoin is decentralized, he reminded that China is attracting Bitcoin miners at an astounding rate. China, where the electricity is cheap, has gathered thousands of Bitcoin miners. Garlinghouse thinks that with such a large number of Bitcoin miners, China could pull off the 51 percent adversary attack and steal away Bitcoin.