Cryptocurrencies prices will eventually overtake Bitcoin
In 2018, cryptocurrencies have experienced their volatile nature, reporting a dip of about 66%, lesser than the previous year. It is noted that prices of cryptocurrencies listed in the market cap are highly correlated with Bitcoin. Ripple’s CEO Brad Garlinghouse stated with CNBC that in the near future the crypto market will realise the difference in assets set by each crypto coin. He continued stating that “… over time you’ll see a more rational market and behaviours that reflect that.”
It is reported that there are over 1,500 cryptocurrencies in circulation around the world. Mr Garlinghouse believes that in 10 years’ time 99% of these digital currencies will not exist. He said that “There’s gonna be a bit of a correction along the way here where a lot of the players in the space that don’t actually solve a real problem are going to get washed out.”
Ripples popularity with investors
Ripple is the 3rd most ranked cryptocurrency per market cap following Ethereum and Bitcoin respectively. Its aim is to create a faster network of financial payments. While, XRP is the digital token name of this currency, enabling financial institutions to transact payments quickly on the blockchain.
Ripple’s CEO declared that the company had increased its profits in its first quarter, by signing 20 production contracts with new firms. On Wednesday 29th May, Ripple reported that they sealed a deal with Kuwait’s largest bank. Through this agreement, the bank will supply XRP tokens to their clients. Although Ripple has been doing badly as a digital currency, losing about 70% of its value of XRP, this trend was seen throughout all the trading cryptocurrency market.
Since the market is yet to be established and understood by many traders, the crypto market remains unstable. During the interview, Garlinghouse stated that “It’s still a nascent industry, the speculation in the market dominates the trading activity. I think it’s a matter of time until people better understand the different use cases.”
However, big leaps in Maltese regulation has given ICOs a better way to form new cryptocurrencies. In fact, ICOs will eventually partake in the initiative to trade their tokens along with other cryptocurrencies. A bright future awaits this sector, the next step is for other jurisdictions to follow in Malta’s footsteps, regulating cryptocurrencies and opening up to blockchain based companies. In contrast, the US, represented by the SEC is still battling to regulate ICOs, stating that all ICOs are securities.