Altcoins Bitcoin

Brad Garlinghouse: Cryptocurrencies are Bad Currencies

Rick D. | February 10, 2018 | 1:00 am
ripple
Altcoins

Brad Garlinghouse: Cryptocurrencies are Bad Currencies

Rick D. | February 10, 2018 | 1:00 am

The Ripple CEO, Brad Garlinghouse, has stated that he doesn’t consider XRP, Bitcoin, Ether, or any other major digital token as currencies. He elaborated his position to Yahoo Finance at their All Markets Summit on Cryptocurrency which was held on Wednesday. The six-hour event was streamed online and sponsored by CoinDesk. The aim of the meet was to examine the growing interest in digital currency and the technology behind it.

A wide spectrum of companies involved in cryptocurrency and blockchain were represented at the summit. These included Blockchain, the digital wallet company, BitPesa, a payments processing firm focusing on Africa, and Chain, a private blockchain initiative being developed for banks.

Another project that has been targeting banks is, of course, Ripple. The idea behind their XRP token is to facilitate faster cross-border payments for traditional centres of finance. The XRP token had an amazing 2017 with its price rising over 32,000%. However, Brad Garlinghouse is uneasy about the title that his token and others have taken:

“I don’t call this cryptocurrency… It’s not currency. I can’t go to Starbucks or Amazon and use—and you know, somebody inevitably will be like, Well, I have one example where I bought something with a bitcoin.’ And then I usually say, ‘Well, did you do a second transaction?’ It’s not actually a currency. These are digital assets. If the asset solves a real problem for a real customer, then there’ll be value in the asset.”

However, the Ripple CEO overlooks the fact that there are loads of examples of people using cryptocurrency to buy something and even more of people using an alternative item or token not typically defined as a currency to make a purchase. What’s more, in the UK I can’t use dollars in my local off license. Does that mean dollars are not a currency? Of course it doesn’t. There is no universal currency. In fact, certain cryptocurrencies are the closest we as a race of people have come to having a currency without borders. Just because people aren’t encouraged to get rid of Bitcoins through centrally managed inflation as soon as they get them doesn’t make it any less of a currency.

For Garlinghouse, digital assets only have value if the asset solves a problem in the business world. They don’t have value as a day-to-day currency. However, this again overlooks the fact that a $20 note has zero utility other than the fact that people widely agree that it is useful as a medium of exchange. Gold too has some practical applications in electronics but these are limited. By and large, the perceived value of gold far outweighs its actual usefulness. The value of gold and paper money is constructed by society and there is no reason why it cannot be constructed again for an asset like Bitcoin, which could be far more useful as a store of value than gold ever has been – BTC is divisible, transferable, transparent, and permissionless to name but a few of its qualities.

However Garlinghouse feels about the title his token and others have assumed, the term cryptocurrency has become so entrenched now after nine years of use, it’s unlikely to be changing anytime soon.

Tags: , , , , ,
  • Jimpop

    who cares what he says , ive wired over $60,000 so far into my account buying ICO’S making loans and selling on the external exchange …the dollar is worthless and is only good as long as people keep buying so much crap that they need more and more money from the FED reserve , without spending and spending, the dollar dies , china and Russia are working hard to remove the worthless dollar in petro trading for oil and they will soon …count on it ….thats ok cause what ever money is accepted after that i can exchange crypto to buy that currency …block chain and bitcoin or something very similar is the future ….BYE BYE BIG BANKS !!!!! someday i will use my CYRPTO CURRENCY TO BUY A LOAF OF BREAD AT WAL MART >>>yes i will !

  • Rob Coins

    Garlinghouse is full of shit.

  • ace laken

    Yet xrp remains in the top 10 trash.

    • Tom Anderson

      XRP is a digital asset, not a currency. Thus, it is in the top ten because it is something of value.

      • Jonah

        Ripple is not an asset. Jesus you have zero clue as to what it is. It’s useless token that’s not required to use ripple services. No utility, no value.

        • Citizen123

          XRP is an asset. It serves a function and purpose over other cryptco currencies.

        • ATInsider

          Again embarrassing yourself with posting none fact based info. Keep it up.

  • Grant S. Stansbury

    First off, this is not true. Nowhere did he say what the title read. He said they are Digital Assets.

  • Sudarshan Reddy

    Well said Mr Brad . Those are not currencies . Those are assets

  • John

    Agreed. Ripple’s not a cryptocurrency it’s a corporate currency.

    • Citizen123

      It is technically a utility token. I consider it a digital asset to be exploited in a positive way by the banking industry.

      • TunaFish

        Banking industry…positive way. Hmm doesn’t quite rhyme.

      • Jonah

        There is zero utility in ripple. It’s a total scam. The ripple network and services don’t require XRP for use.

        • Marco Maltese

          ???

        • Caio

          xRapid (XRP) is a Ripple service that has utility and is being adopted, it’s a fact.

        • Citizen123

          Xrapid uses XRP. Xcurrent doesn’t. Both are platforms on Ripple. 4 companies currently use Xrapid protocol. XRP is a utility token.

          • ATInsider

            5 companies use xRapid.

        • ATInsider

          Research Ripple and XRP before embarrassing yourself. Oh it’s too latex you already posted nonsense.

    • ATInsider

      Ripple? No, XRP? Yes. Anybody claiming XRP isn’t a Crypto Currency, will also have to categorize Bitcoin as not a Crypto either.

  • Citizen123

    I think Garlinghouse is a great spokesman and advocate for XRP and the Ripple company platforms.

  • TunaFish

    He is absolutely correct. Ripple is not a currency. Everyone should dump this centralized monstrosity of a coin that does not serve any purpose.

    • Steve Kerley

      Does not serve a purpose??? Wow!!! You gotta love blind loyalty to other coins. Xrp has a purpose and is being used in the manner in witch it was designed. Centralized or not it’s doing quite well for me. Eventually it will be at the top of the list pissing down on everything else. LOL

      • Glucus2

        Really? And how is it using? If banks do not use the token itself.

  • Ricardo Martinez

    ripple is a shitcoin, and that dude is a scammer, who cares about his opinion.

    • ApolloXII

      Dear Ricardo Martínez.

      You called the CEO of RIPPLE “dude” and you think XRP is a shitcoin.

      Brad Garlinhouse was
      President of Consumer Applications at AOL for two years, after his role as Senior Vice President at Yahoo! running its Communications business which included the Homepage, Flickr, Yahoo! Mail, and Yahoo! Messenger.

      I THINK HE KNOWS WHAT HE IS DOING.

      What is your CV Mr.Ricardo Martínez? Maybe we can all learn something from you.

      Juan Lorenzo, Spain.

    • ATInsider

      That Shitcoin is worth a lot more than you lol

  • David Leslie

    the trouble with the whole crypto thing is the deluded nerds who believe this coin is better than this coin and have these weird loyalties. They are digital assets. All this infighting is ruining the opportunity to attract new people to the market. These deluded clowns need to STFU

  • Tom Anderson

    He works for a cryptocurrency. If you don’t understand basic terminology, maybe this could update you: “a currency is a system of money (monetary units) in common use, especially in a nation”. He is saying that cryptocurrencies are not well described as currency because they are not in common use. He is arguing that they are better described as “assets” because are owned and can be used to meet debts, commitments, or legacies.

    • pcpc

      The common starts with a community, and as demonstrated people have already directly bought things with cryptos. So the rest is just (down)playing with words. But he serves the banking system anyway, why should we be surprised if he misses the whole point of this?

  • Vi Qiong

    So long as enough gullible people pledge their trust to a certain craptocurrency, and it manages to reach the critical mass point, it can take off from there so long as that trust continue to multiply n not get seriously eroded . It is some smart Alec selling snake oil as was defined by craptocurrencies proponents. It was meant to be a scam from the outset .

  • Dandew

    I think the revolution is bout creating a trustless currency; and Rome never built. So bitcoin and other alt coins won’t become a daily use currencies in a couple of years.Backing up is not an alternative.The revolution will ntinue and paper money will be obsolete.

  • Caio

    Misleading title

NewsBTC is a news service that covers bitcoin news, technical analysis & forecasts for bitcoin and other altcoins. Here at NewsBTC, we are dedicated to enlightening people all around the world about bitcoin and other cryptocurrencies. We cover news related to bitcoin exchanges, bitcoin mining and price forecasts for various virtual currencies.

Get the app

Featuring live charts, price analysis, breaking news, currency converter and more. The only bitcoin app you need!