Ripple CEO Brad Garlinghouse said that bitcoin could not become the main currency in the world, as some crypto enthusiasts predicted. And it’s all about China.
“Many outstanding people, even Steve Wozniak, say that bitcoin can become the main currency in the world. I think that this is absurd. None of the world’s leading economies will let this happen, “Garlinghouse said in a speech at the Cross Sector Insight 2018 conference in Boston.
Then he immediately developed his idea, adding that over 50% of the capacities occupied in the mining of bitcoin are concentrated in China, which means that bitcoin is nothing more than Chinese money, writes hashtelegraph.
“Four Chinese miners control more than 50% of bitcoins. How do we know that China will not interfere? And how many countries will want to use the currency controlled by China? This simply will not happen, “Garlinghouse stressed.
Concerns about the centralization of bitcoin arose long ago, and the main topic of the agenda, perhaps, is no longer. However, so far the community has been preoccupied with centralization as such, rather than a ghost of the Chinese threat.
The data provided recently by the BitInfoCharts resource indicates that the bitcoin platform is much more centralized than is commonly thought. To date, the world has 11 million BTC- “HODLers”, and 35.4% of all coins are at the disposal of one thousand users. However, nothing is reported on the nationality of this thousand.
Note that the Chinese mining pools BTC.com, Antpool, F2Pool and BTC.TOP control 59.7% of the hashpower of the bitcoin network. And this is not counting the smaller players, which are also enough in China.
Brad Garlinghouse believes that bitcoin has not become a universal remedy for all problems. “It takes 45 minutes to make a payment in the bitcoin network – this can take four seconds on a Ripple network. Banks will use what is effective and cheaper. If you put the best product at the best price, banks will use it, “- said the head of Ripple.
He also expressed the opinion that the blockchain will not destroy the banks, but will play an important role in the financial system in the near future.
Brad Garlinghouse admitted that he owns a certain number of bitcoins, and made a long bet on the cryptocurrency. But those who want to invest in crypto assets advised investing no more than the amount they are ready to lose. However, he recommended not taking his advice seriously.
In May Brad Garlinghouse said that bitcoin as a technology will lose its relevance.