The CEO of a Japanese financial institution, SBI holdings is bullish about the future of Ripple(XRP) and has expressed his willingness to help the cryptocurrency to edge past Bitcoin in market capitalization. Yoshitaka Kitao, the CEO of SBI holding which generates revenue of around $200 billion, points towards the growing interest of various banks to implement XRapid and also cites the example of 200 companies which have signed for the RippleNet.
Yoshitaka Kitao was quoted,
Because the fundamental value (of Bitcoin) is zero, it falls by 80% from the peak. This is rare in the stock market and others. It has been said from the long ago that the rule of the rice exchange rate, even if it feels, it is said that it will almost stop at half price eight odd discounts, but it continued to fall without stopping. After all, it is because there is no fundamental value. There is basically no value for Bitcoin. The fact that Bi coins are going to be used more and more in practical use is not easy when it comes to that price. So I think that XRP in the crypto world is probably the number one crypto asset.
Kitao also says that while Bitcoin is looking for a use case, Ripple has already proved its worth as a tool for sending fast and secure cross border payments at a much cheaper rate.
However, that is not entirely true, Bitcoin has proven its worth as a dynamic payment option and the number of vendors accepting it is on the rise. Bitcoin is being used as a payment method, as a medium of exchange and even a store of value.
Yoshitaka Kitao Criticism of Bitcoin is Half-Baked!
As we were pointing out, Yoshitaka Kitao criticism of Bitcoin does not seem to be completely valid. While Ripple has a well-defined use case and they are definitely making waves in the banking sector but the crypto is centralized with one organization having total control over its functioning and work structure.
On the other hand, Bitcoin is decentralized and its use cases are defined by the community, and one can decide how they want to spend the digital asset be it as a medium of exchange or store of value. In reality, a lack of well-defined use case for Bitcoin makes it so valuable which Yoshitaka Kitao is trying to prove to be a negative aspect.
XRP for sure can be implemented by various cross-border payments but its appeal to the masses is nowhere near to that of Bitcoin. The bullish nature of the SBI CEO towards XRP should not come out as a surprise as the financial institutions have invested in Ripple and R3 and make use of XRP to settle transactions between traditional and crypto assets.
However, the tall claims of pushing the market value of XRP beyond Bitcoin seems a far-fetched dream at this point. It would be one great achievement for the firm if it is able to push the value of Ripple past the Bitcoin.
There is no doubt that Ripple has the potential to become one of the widely used cryptos by the banking sectors around the globe, as hundreds of banks have signed up for its RippleNet payment portal and many more are planning to follow the suit. However, saying that Bitcoin has no fundamental use case is just being ignorant.
Another factor which tells you the reality of the claims is that Ripple is centralized which is against the basic principle of cryptocurrencies. In order to make the claims of SBI CEO a reality, XRP developers need to come up with a product which follows the principles of decentralization. However, if Ripple carves a base for itself by providing faster and cheaper cross-border payments, it would still find it difficult to match the popularity and price value of Bitcoin due to the centralization aspect.