Ripple CEO: Bitcoin will eventually stop driving the crypto markets

Coins need start solving real problems, not each other’s problems, to be valued in their own right.

If you want to know how your coin’s going, just look at bitcoin prices. When bitcoin goes up, so do all other cryptocurrencies. When bitcoin drops so does everything else.

To date the crypto markets have simply tended to swim along as one amorphous blob, with the most distinctive anomalies usually being the result of foul play, accidental failure or deliberate price manipulation. Even as bitcoin’s market dominance waned the effect stayed strong.

“There’s a very high correlation between the price of XRP [Ripple] and the price of bitcoin, but ultimately these are independent open-sourced technologies,” said Ripple CEO Brad Garlinghouse to CNBC.

He attributes it to a simple lack of maturity and experience in the market, and the lack of experience that leaves most people unable to differentiate between the use cases of different coins.

“It’s early, over time you’ll see a more rational market and behaviors that reflect that… 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.”

A correction

It’s only a matter of time until the market develops enough to see different use cases being broadly recognised, Garlinghouse says. This will take the form of a wipeout somewhere down the line, in which the coins which don’t actually do anything die off.

“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,” he said.

It seems inevitable, but it also seems a long way off at this point.

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Source: Ripple CEO: Bitcoin will eventually stop driving the crypto markets | finder.com.au