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Ripple CEO Against Bitcoin: “Bitcoin is Kind of the Napster of Digital Assets”

 

Bitcoin launched the cryptocurrency revolution, but ultimately it could be end up more like Napster, which changed the rules of digital music without actually succeeding.

“We may come to find that bitcoin is kind of the Napster of digital assets. This is transformative technology, but Spotify and iTunes and Pandora rule the day because they engaged with regulators to solve a real problem.”

Garlinghouse is pretty clear he thinks the so called “god of cryptocurrencies”, bitcoin, is now in the bad idea category, at least for its original use, a replacement for ordinary money. Bitcoin’s blockchain ledger records transactions on a global network of computers that no single entity controls. But actually buying something is a problem, he said.

Garlinghouse went on to criticize the utility of Bitcoin as a currency. He pointed out that slow transaction times and high fees make Bitcoin impossible as a replacement for fiat currency. He told the audience,

“People talk about using bitcoin to buy coffee, The average bitcoin transaction can take as much as 20 minutes. And the transaction cost is going to double the price of your coffee.”

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