This topic is about the statement of the founder of Ripple with a bold statement that:

99.9 percent of cryptocurrency trades are based on speculation.

Statement It came during an interview conducted by “Brad Garlinghouse” at the Economic Club of New York, and it stated:

About 40 to 50 billion dollars are traded daily in the crypto market.

So this is a highly liquid market, there is a lot of trading, but most of it is just speculation.

In the sense that “Garlinghouse” believes that the level of noise is more than what is actually happening and has exceeded reality, while the market is in fact still in its early stages.

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He expressed the expected benefit from cryptocurrencies and that they should provide a service whose usefulness is related to the real world given the need to fix “slow and expensive” payments across borders.

Conventional solutions such as SWIFT will fail to solve this problem.

Although some would argue that the volatility of Ripple prices could prevent its adoption by financial institutions, Garlinghouse argues that its transactions are so fast that there is no need for services like SWIFT.

Where he stated that:

“With XRP and the transactions are happening so fast that you don’t really need to hedge it and its volatility because you get in and out of it in a matter of seconds.”

When addressing the point of the centralization problem, Garlinghouse denied the accusations against Ripple and criticized Bitcoin, which he said is central because 80% of mining operations are centered in China, an authoritarian country that attracts miners with its cheap electricity.

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He adds that the Bitcoin blockchain can be altered if someone succeeds in the attack at 51 percent.

Read also:

Ripple Acquires a Startup to Enter the World of Decentralized Finance (DeFi)

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