Cryptocurrency, Bitcoin's influence is set to fall

Cryptocurrency, Bitcoin's influence is set to fall. According to Ripple's CEO, cryptocurrencies will become increasingly independent.

Cryptocurrency, Bitcoin's influence is bound to fall - cryptocurrency00

I Cryptocurrency market prices have long been highly correlated with those of Bitcoin, the first and most famous token existing on the sector. However, this situation may end soon, or at least when markets will begin to recognize the differences between these resources, says the CEO of Ripple, Brad Garlinghouse.

“There is a very high correlation between the price of XRP and the price of Bitcoinbut in the end it comes to independent open source technologies, ”he said Garlinghous to. "It is early, but over time you will see a more rational market and behaviors that will reflect this scenario."

Ripple is the name of the San Francisco-based company that developed and is developing a network for faster global financial payments. XRP instead, it is the name of the digital token that the financial institutions of the network can use to carry out transactions quickly. A little - in short - as happens with Ethereum and Ether: Ethereum is the project and the network, Ether it's the token.

Company Ripple He had a record first quarter, by signing 20 production and collaboration contracts with companies of various sizes and sectors. In particular, Garlinghouse has paused in announcing an agreement with the largest bank in Kuwait last Wednesday, with the credit institution which is therefore joining companies like MoneyGram in the long series of tests of XRP for its cross-border payments.

And yet, in the same period, XRP has lost the 70 percent of its value and it was "the worst of the best digital currencies". The whole industry suffered a severe blow in the first quarter and the market capitalization for cryptocurrencies declined by more than 50 percent, according to CoinMarketCap data. Bitcoin has lost around 50 percent in those three months.

“It is still a nascent industry, the speculation in the market dominates the business, "said Garlinghouse. "I think it's a matter of time before people better understand the different use cases of cryptocurrencies."

In the world, always according to the data, there are more than 1.500 cryptocurrencies. The CEO predicted that 99% of those digital resources will not exist in 10 years. "There will be corrections along the way, and those operators who don't really solve a real problem will be wiped out," he said.

Not only do some cryptocurrencies do not have a proven use case, but they have been accused of ruining investors through a fundraising process such as the ICO, poorly regulated and disciplined. As a result, the Securities and Exchange Commission itself warned against pump-and-dump schemes and recently accused some of these plans.

"The SEC is as involved as it should be because fraud has been committed in the industry," Garlinghouse said. "We have been supporters of government involvement, as authorities should protect investors and businesses."