Most cryptocurrencies are likely to become valueless, Brad Garlinghouse, the CEO of Ripple (XRP), has claimed during a talk at the Goldman Sach’s Technology and Internet Conference.
The issue, Brad opined, was that most of these currencies are being traded as assets, and not as transactional currencies as fiat currency is used. Without a transactional value, most of these currencies likely have no need to exist.
“Long term value will be dictated by the utility of that asset,” said the CEO.
Ripple, which has the third highest market capitalization among cryptocurrencies, does indeed portend to such a gloomy forecast; from a peak value of $3.3 in January, it now languishes at $1.1.
Since December, the values of most cryptocurrencies have plunged in similar fashion, with Bitcoin losing more than 60% of its value.
Despite this freefall in value, not all agree with Garlinghouse’s sentiment.
A panel of experts has projected a boom for cryptocurrencies in 2018, with Bitcoin soaring to $43,000 by the end of the year; according to these experts, Ethereum is likely to double in value within the same period, while Cardano may witness a 16-fold rise in its value.
At the moment however, the increasing onslaught against cryptocurrencies is likely to hinder such growth.
China has banned initial coin offerings and crypto exchanges, while India (which seems keen on embracing blockchain technology) has vowed to “take all measures to eliminate the use of these crypto-assets in financing illegitimate activities or as part of the payment system.”
Meanwhile, the World Bank Group President, while admitting to an interest in blockchain technology, dismissed cryptos thus: “I’m told the vast majority of cryptocurrencies are basically Ponzi schemes.”
Banks are also moving in against cryptos, with Australia’s largest bank barring the use of its credit cards for the purchase of cryptocurrencies, a move similar to Britain’s Lloyds.