CEO of Ripple, Brad Garlinghouse has recently, in an interview with CNBC, said that he believes at present, the value of XRP and Bitcoin do correlate significantly, but, overall, once XRP can break out of this trend, he believes XRP will come into its own and truly perform as a standalone cryptocurrency.
According to Garlinghouse:
“There’s a very high correlation between the price of XRP and the price of bitcoin, but ultimately these are independent open-sourced technologies, it’s early, over time you’ll see a more rational market and behaviours that reflect that.”
See the full report by CNBC for yourself, here- https://www.cnbc.com/2018/05/30/bitcoins-influence-over-cryptocurrency-prices-could-end-soon-says-ripple-ceo.html
We do know that overall, Bitcoin does lead the direction of the markets, that’s because (at the time of writing) Bitcoin has a market dominance of 38.8%. This has risen by a couple of percent over the past few weeks, suggesting that the dominance of Bitcoin is only getting stronger. Although, like Garlinghouse, many people do believe that as altcoins get more popular, this dominance will diminish. It’s not a bad thing for Bitcoin, however it does mean that one day, market capitalisation will be more evenly split and, most importantly, it means individual cryptocurrencies will be able to lead their own way and won’t be subject to the wrath of Bitcoin forever.
According to CNBC, Garlinghouse continued:
“It’s still a nascent industry, the speculation in the market dominates the trading activity. I think it’s a matter of time until people better understand the different use cases.”
“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.”
What does this mean?
Garlinghouse is referring to currencies without a specific use. Of course, XRP is backed by a million different Ripple services (okay, not a million, I mean three). But, it is this backing that will ensure that, in the future, Ripple and XRP have a purpose. It is that purpose, that Garlinghouse believes will allow XRP to be injected into the mainstream and thus, will eventually shake off Bitcoin.
Once this happens, Ripples own actions and XRPs own news, will be enough to shape the trajectory of the currency. Importantly it is this as a concept, that Garlinghouse believes sits within the pure essence of XRP, the essence that will make it a success.
Overall, the take home message is this. Things look slow at the moment, with Bitcoin still at the helm. Regardless, a mutiny is in the pipeline, cryptocurrency adoption will change the face of the markets forever, when it does, Ripple XRP will be one of the first, ready to carve its own destiny.