Only one per cent of crypto will survive - but these will be game changers
Crypto needs to focus on “solving real problems for real customers”
Only one per cent of all cryptocurrencies will survive, and these will be “game changing” according to Ripple CEO Brad Garlinghouse.
In an interview with Bloomberg, Garlinghouse said crypto is a victim of its own success, with “lots of hype and experiments” and around 3,000 digital assets competing. As a result most will fall by the wayside.
“Anytime there is a new market, there are a lot of people that run into that market and try to show that they can solve a problem, they can deliver a customer need,” he said. “But 99 per cent of all crypto probably goes to zero.
“There is 1 per cent that is focused on solving real problems for real customers, and is able to do that at scale. They are the ones that are going to be game-changing and will continue to grow in the decades ahead.”
Ripple created XRP, which enables banks, payment providers, digital asset exchanges and corporates to make instant payments. XRP is currently on the up, adding some 30 per cent to its price since the end of September.
Responding to investor concerns over this high sell off price, Garlinghouse said he doesn’t think about the price of XRP in the short term.
“Taking advantage of what digital assets can do to make transactions more efficient is a journey we will be on for a decade or two,” he said. “It’s a marathon and we are on mile two.”
“If we can enable XRP to be the most efficient crypto, measured by speed and cost of transaction, the more people will use it.”
Garlinghouse said it is the speed of XRP which makes it far less volatile than other traditional payments systems, such as the Society for Worldwide Interbank Financial Telecommunications’ (SWIFT).
“Transaction volatility is a calculation of both time and volatility,” he explained. “When you enable a SWIFT transaction it can take three days, whereas an XRP transaction takes a few seconds. The volatility for handling a SWIFT transaction is therefore much higher than handling an XRP transaction.”