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by Shaurya Malwa The cryptocurrency sector attracts a lot of mainstream media attention due to monumental investment returns, with much of the price movements attributed to bitcoin.
But, the CEO of Ripple, Brad Garlinghouse, believes that this phenomenon could soon end, and cryptocurrencies may decouple from bitcoin’s price action before the end of 2018. Garlinghouse refers to the cryptocurrency market movement in general, which seems to wane as bitcoin prices plunge, and vice versa.
However, as per a report on CNBC, the entrepreneur believes that markets will soon acknowledge the differences between cryptocurrencies, and start to treat the market as several entities rather than one depending on the pioneer cryptocurrency. “There’s a very high correlation between the price of XRP and the price of bitcoin, but ultimately these are independent open-sourced technologies.
It’s early, over time you’ll see a more rational market and behaviors that reflect that.” The 90-day correlation between BTC and XRP has historically been positive. Source: Coinmetrics While Garlinghouse’s San Francisco-based firm Ripple has developed a blockchain framework to facilitate faster cross-border payments for banks, the company’s native XRP token is offered “optionally” to clients to conduct transactions.
In terms of business, Ripple had an impressive first half of 2018 and signed over 20 production contracts with banks across the globe, including Kuwait Finance House and MoneyGram. Notwithstanding the parent company’s profits, XRP lost over 70 percent of its value in that period and was amongst the worst performing cryptocurrencies. Read more from btcmanager.com…
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