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In a recent interview, Brad Garlinghouse, the CEO of ripple touched on something quite interesting. He said that, he doesn’t think cryptocurrencies like Bitcoin (BTC) and XRP (XRP) will be used for everyday payments. He said that fiat, more specifically, the U.S dollar works quite well in this function. Here is an exempt of his conversation.

“Often I will call these broadly digital assets, and not crypto currencies. This is less of legal distinction and more of a pragmatic distinction. I don’t think we gonna be buying coffee at Starbucks in bitcoin or XRP anytime soon. We gonna ask ourselves what problem does this solve…The fiat currency, the U.S dollar works pretty fine in this case…”

His sentiments pretty much echo those of other crypto figureheads including Jared Tate of Digibyte, who believes that, the true value of Digibyte (DGB) is not in payments but in cybersecurity.

Such views from crypto insiders can help give an investor a heads up, on what cryptos to invest in, with great prospects for the future. XRP for instance has a strong use case in cross-border payments, a market that is worth trillions of dollars. This is a strong use-case that can anchor its value in the markets going into the long-run. All it will take is for a large number of financial institutions to adopt it, and its long-term value growth will be somewhat guaranteed.

The problem with cryptos that are intrinsically designed as fiat replacements is that they are up against complex challenges that may not be easy to overcome. The first one is the HODLing mindset that is entrenched in crypto. Most people buy crypto with the expectation of a value increase, hence the need to HODL. This means that even coins that are meant to be spent, don’t get spent, hence dimming their long-term value prospects.  People would rather buy coffee in fiat than do so in fiat, and miss out on gains later along.

The second challenge they face is that of politics. Fiat currency is strongly linked to politics. It’s one of the tools that nations use for control. It won’t be easy for governments to give up this power, and this could limit the adoption of digital coins as currencies. For instance, expecting cryptos to replace currencies like the Dollar, Euro, Yen or Yuan in the near-term is a bit far-fetched. It could happen in the long-run, but most cryptos that have no strong use-case outside of payments would not hold their value for that long. Besides, other better alternatives will most likely have come up by that time.

Going by this logic, it is best to look into cryptos that have an edge in other markets other than payments. XRP (XRP) is one of them since as mentioned earlier, it has a huge potential to disrupt the global cross-border payments market.  It has cut a niche for itself in this market, and is way ahead of the competition. It is also gaining in adoption as a base currency in crypto exchanges, a highly lucrative market too, one that will drive up its demand in the long-run.


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