Bitcoin is considered the most popular cryptocurrency. However, it is important to note that its issues have led towards the creation of different altcoins. In fact, there are around 1,800 altcoins and its number is still growing until today. One of the cryptocurrencies attempting to take Bitcoin’s current position is Ripple.
If you will ask Ripple CEO Brad Garlinghouse, he believes that Bitcoin’s popularity will soon end. This will happen as soon as the market starts to acknowledge the difference between different cryptocurrencies. According to him, “there’s a very high correlation between the price of XRP and the price of Bitcoin, but ultimately these are independent open-sourced technologies”. He also added that “it’s early, over time you’ll see a more rational market and behaviors that reflect that”.
Ripple and Banks
One of the things that make Ripple stand out is its cause to improve banking cross-border transactions. Ripple has already signed with 20 new firms during the first quarter of the year. Also, Ripple announced its partnership with the largest bank in Kuwait. And to make things even more interesting, Ripple is already being tested by MoneyGram.
Though Ripple is making waves in terms of its partnerships, it is also worth mentioning that the cryptocurrency lost 70% of its value and has been considered as the worst performer from the top digital currencies. Bitcoin, on the other hand, lost almost 50% within the first three months. And now, Bitcoin is actually just floating around $7,200 despite experiencing an all-time high of almost $20,000 during mid-December of last year.
Garlinghouse explained though that “it’s still a nascent industry, the speculation in the market dominates the trading activity”. He even mentioned that “I think it’s a matter of time until people better understand the different use cases”.
Garlinghouse also mentioned that despite the growing number of digital currencies, he sees 99% of these digital currencies to become non-existent in a matter of ten years. He said that “there’s gonna be a bit of a correction along the way here where a lot of the players in the space that don’t actually solve a real problem are going to get washed out”.
There are changes recently happening in the crypto market and it involves regulators hunting companies that make use of cryptocurrencies for their scam. Considering the grey area that the cryptocurrency market is in, investors are vulnerable to encountering these scams.
And because of this, many cryptocurrencies today are losing their value over investors who are panicking regarding the clampdown. However, this can be a good move. It could be a preparation for the institutional investors. Among the greatest concerns of institutional investors is the lack of regulatory clarity when it comes to cryptocurrencies.
If you are going to ask Dan Morehead who is the founder of Pantera Capital Management, now is the best time to buy now that cryptocurrency price is low. He even mentioned that “All cryptocurrencies are very cheap right now”. He added that “it’s much cheaper to buy now and participate in the rally as it goes”. But is it possible for some other altcoin to take market leadership position from Bitcoin? Only time will tell.