Published On: Wed, Feb 14th, 2018

Crypto CRASH: Ripple CEO warns cryptocurrency values could drop to £0 in price PLUNGE | City & Business | Finance

Ripple boss Brad Garlinghouse has said he does not think all cryptocurrencies will survive.

His warning comes after Bitcoin has dramatically seen its value plunge throughout 2018 from a record high of nearly £15,000 in December 2017 to now under £7,000.

Speaking at the Goldman Sachs’ Technology and Internet Conference yesterday, Mr Garlinghouse said he believes “most” digital currencies will eventually lose all their value.

He said: “It’s not clear what the use case is.

“It’s not clear the what value proposition is.

“Long term value will be dictated by the utility of that asset.”

He warned cryptocurrencies are too unpredictable to be widely used due to largely being unregulated and with very volatile price markets.

The lack of regulation means the value of Bitcoin is suspect to rapid change.

In 2018 a number of countries have introduced new rules for using the original cryptocurrency which is believed to have affected its market performance.

South Korea introduced a raft of measures last month aimed at regulating Bitcoin.

A ban on anonymous trading was implemented by the Asian power in a bid to crack down on all possible criminal activities the secret nature of trading Bitcoin allowed.

Meanwhile, India’s Government has said it does not consider cryptocurrencies to be legal tender and will try to phase out payments using the online money.

Bitcoin is not the only cryptocurrency to suffer a drop in value after a period of success.

Mr Garlinghouse’s own Ripple currency has seen its value take a hit in 2018.

In January Ripple hit the highest price yet and was worth £2.38 but is now worth less than £1.

However, Ripple’s XRP gives the company more control over its value than the original cryptocurrency.

With a large amount of currency kept in company reserves, Ripple can limit fluctuations in the price of its online money.

Despite Mr Garlinghouse’s fears that most cryptocurrencies will drop to zero, he does still believe Bitcoin will end a success.

Instead of acting like currency the crypto boss believes it could be used to store value – similar to how gold is currently used -rather than for making payment.

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