Most of the cryptocurrency prices are actually falling as Bitcoin in setting the tone for the day. Moreover, Bitcoin also decides the entire trend for the entire cryptocurrency market. This is the reason why the influence of Bitcoin on cryptocurrencies is still significant.
According to the ripple CEO, Brad Garlinghouse, the relation between XRP prices and Bitcoin is present. This is the reason why many of the other cryptocurrencies are also impacted by the swings in Bitcoin. However, it is clear that in the future, the influence of Bitcoin will reduce drastically. As a result, many of the cryptocurrencies will be able to chart out their own course rather than just getting influenced by Bitcoin.
“There’s a very high correlation between the price of XRP and the price of bitcoin, but ultimately these are independent open-sourced technologies,” Garlinghouse told CNBC
The potential in Ripple:
Ripple is based in San Francisco. Moreover, it is capturing a vast portion of the global payments market. As a result, the potential in ripple is pretty huge. It is tying up with more and more companies. In this very year, it has tied up with more than 20 different companies all over the world. Moreover, as it offers the opportunity for the companies and institutions to transfer money anywhere around the world instantly, the product which it is offering is pretty unique and is pretty useful. This is the reason why it is able to gain a significant amount of traction. There are hardly any cryptocurrencies which are able to get such large amount of traction.
However, ever since it has been able to gain more and more traction and the usability increased, Ripple has actually fallen by 70%. This is because the entire market is in a bearish trend due to the fall in Bitcoin. This clearly indicates that the influence of Bitcoin is significantly higher. As a result, unless and until, Bitcoin recovers, Ripple will continue to fall as well. This is one of the main problems.
According to the CEO, he believes that the cryptocurrency industry is still in the nascent stage. In the coming few years, the influence of Bitcoin will surely decrease. As the number of tokens increase, automatically the influence of Bitcoin will actually decrease.
Even though Bitcoin will always remain the pioneer cryptocurrency but the influence will be on the lower side which will ensure that the currencies are able to move according to the fundamentals rather than just following Bitcoin. When that happens, currencies like XRP will be able to rise significantly. The fundamentals of such currencies are much better as compared to Bitcoin which is just being used as a transaction medium.
