XRP Has A Great Future, Bitcoin Is Dead-End

← back to the list


XRP Has A Great Future, Bitcoin Is Dead-End

Posted on September 24th, 2018 in Blockchain News by Ryan Warner

Modern Wall Street held a discussion with Jim Rickards, author of The Death of Money, Stephen Guilfoyle, the Founder of Sarge986 LLC, and economists Douglas Borthwick and David Williams, who spoke about the correlation of gold and Bitcoin markets.

The discussion began with how the world economic powers are beginning to shift from the US Dollar to gold. Also, they spoke of Swift and how nations are switching to gold and digital currencies likely due to the dominance of the US Dollar.

Douglas Borthwick took a stand against Bitcoin stating those involved in Bitcoin don't understand the mechanisms of the macro environment. Douglas continued saying:

“I think that the holders of crypto or the holders of Bitcoin really have very little understanding of what’s going on in macro environment. They’re buying it because they see that’s the furture for a technology as opposed to folks buying and selling dollar, buying and selling gold to do that because they see this the future of macro-economics.”

Stephen Guilfoyle as about how Bitcoin is being seen as gold by younger investors. Jim Rickards responded by saying there are approximately 1600 cryptocurrencies listed on major exchanges, some small and some a fraud and that the biggest among them is Bitcoin that is only used by tax evaders and terrorists.

He went on to say:

“It’ll get to $200 a coin which is kind of residual criminal value but all this stuff about, you know, six thousand dollars, that’s all nonsense.”

Jim Rickards stated the Dollar is already a digital currency as the FedWire system is digital and all data is encrypted. The only factor that makes a cryptocurrency is its technology in a digital distributed ledger which is absent in the Dollar. He stated that blockchain technology and some of the currencies behind it have a future.

Bitcoin is not scalable, sustainable, and is a dead-end. They went on further to compare the Bitcoin bubble to the Dutch tulip bubble.

Douglas Borthwick was positive on Ripple and the native currency XRP, referring to them both as Ripple he said:

“There are some cryptos that are working with regulators. Ripple would be an example. I can imagine in the next five years instead of doing sterling against the dollar or sterling against the yen, I can see these transfer transactions with sterling versus Ripple."

And continued:

“The reason being dollar right now is a two day settlement with something like Ripple, you could do settlement in seconds. I think that there’s a future there where the guy that’s trading in spot FX today will be trading spot FX against Ripple in the next two or three years. So, I think Ripple has a great future because right now it is supported by all the banks and all the regulators.”

Satoshi did not think about monetary economics while creating Bitcoin, Jim stated. He added this is because as demand increases supply should also increase. On the contrary as demand for Bitcoin increases there will be a future where there will not be enough supply.

According to Jim, the money supply has to grow a little as the economy grows, Bitcoin cannot do that after reaching its cap, resulting in deflation when borrowed, resulting in people having to pay more as the value keeps increasing long-term.