Yesterday, Dr.Craig Wright declared war on the ABC and Bitmain backed side in the bitcoin cash hard fork. In one of his tweets, Craig Wright threatened bitcoin miners that if they switch to mine Bitcoin cash, his side would sell bitcoin for USD, a scenario that would tank the market. He explicitly stated that he would not mind $1000 BTC. Such utterances and the fact that bitcoin (BTC) has indeed tanked within the next 24-hours could have wide-ranging implications on the crypto market.
One of the implications is that it could drive money, especially institutional money away from the market. All through 2018, investors have been looking forward to mass adoption to drive the market in its next phase of growth. That’s why there has been so much excitement in the market around Bakkt and a possible Bitcoin ETF in 2019. However, the current hash war and the threats from Craig Wright cast doubt on the decentralization of Bitcoin, and the sustainability of this market. This could drive away institutional money away from the market, or probably force them to hold off until things are clear up, and that’s not good for the market.
But like all wars, this one too will have a winner. The surprise winner, in this case, may not be bitcoin (BTC), or any of the variations of Bitcoin Cash, but a coin that has been making big moves in terms of market acceptance. That coin is XRP (XRP). XRP stands a good chance of emerging victorious for a number of factors.
The fights and the threats going among the big players in bitcoin and bitcoin cash have exposed Bitcoin’s underbelly, and that’s the fact that it is controlled by a few individuals. This may lead investors to scrutinize it, and all other coins more closely. The fact that bitcoin can be swayed by a few persons, brings to question its true value. This will lead more investors to discover that XRP is one of the few coins that have real usage in the market, and by extension, intrinsic value. It has a real utility because it solves the liquidity issues of the banking industry, and has been proven to actually solve this need. This is a use case that transcends the speculative value that is prevalent in the market at this point. As this use case gets clearer in the market, investors will jump in and demand will drive up its price.
The bitcoin hash wars and the threats of driving down its value may dent its long-term credibility. Compared to Bitcoin (BTC), the credibility of XRP is way up there at this point. That’s because ripple has made significant progress in terms of acceptance by global institutions. For instance, it has people at a FED taskforce and has working relationships with banks all across the world. On top of that, ripple, which holds a significant amount of XRP, is a credible company that has top companies and venture capitalists backing it. Best of all, it operates in the U.S a country where financial regulations are strict and any mischief can lead to jail terms. This is credibility that could drive in most of the money flowing into crypto into XRP.
The bitcoin wars could be the beginning of the rise of XRP to a globally dominant crypto. It has already overtaken Ethereum (ETH), and now BTC is the target.