When we hear the word ‘cryptocurrency’, it’s highly probable that the first thing we associate with it is Bitcoin. It makes sense, as this was the first cryptocurrency to come to existence and it is probably the most popular of the lot.
As the leading digital currency, Bitcoin is extremely popular in a variety of markets including gambling and gaming. In addition to this, it has a notable influence in the prices of other cryptocurrencies. As the crypto world has evolved and more new altcoins have popped up, the interest of the public and of investors has increased and the potential of this new market has seemed clearer than ever.
The problem with altcoins though is that, once transacted and/or invested, they cannot be exchanged for fiat currencies, but for BIT – hence their strong dependence on Bitcoin’s fluctuations in value.
This is also valid for the company Ripple and its XRP; the digital token used for transactions within the network.
However, that might not be the case for much longer, as Ripple CEO Brad Garlinghouse maintains, because the market is developing and rationalising. Even though, to quote his own words, “there’s a very high correlation between the price of XRP and the price of bitcoin”, he also believes that “ultimately these are independent open-sourced technologies” and thus their interconnection will be less and less strong as the market evolves.
He has good reasons to believe it, for sure, at least given the success that his California-based company has been experiencing. Although the value of XRP has had ups and downs recently, thus showing a certain volatility, the company has indeed landed as many as 20 new contracts and seems to be doing very well.
Garlinghouse has expressed a strong and clear point of view regarding the matter. He believes that in some years, the vast majority of the cryptocurrencies will disappear, as they are not entities on their own with a true utility for customers; on the contrary, XRP will be one of the few still standing ones, as it will be able to offer a real payment solution.
His forecast does not seem too far fetch, we must admit. Furthermore, let’s not forget that the cryptocurrency market is still relatively new and as such it can still be unpredictable – well, even more unpredictable than most.
We’re noticing a slow but meaningful change in some trading marketplaces, which have been adding USD pairs. If this could happen for XRP, it would be the push it needs to take off and fly in high skies.
Maybe Ripple XRP will soon become one of the next big influencers in the cryptocurrency market, and that will have very interesting implications as far as trading and investing goes.
So, is Bitcoin’s primacy really under threat? Or will the market keep on looking up to it as a touchstone for the prices?