After his criticism of Bitcoin’s energy consumption, Brad Garlinghouse of Ripple (XRP) clarifies his position. No way in the midst of XRP’s rise to suggest a threat to BTC and the crypto.
The issue of Bitcoin’s energy consumption is causing a stir within the crypto community itself. In an interview published a week earlier, Ripple’s CEO pointed out flaws in the BTC model.
Certainly, Brad Garlinghouse called Bitcoin an “exceptional store of value”. In terms of energy, however… ” It’s just not ideal as a payment mechanism [because of] the energy costs of PoW [Proof-of-Work]. “
And he wasn’t the only executive at XRP issuer Ripple to direct criticism at Bitcoin. According to its CTO, David Schwartz, Bitcoin was “doomed to fail in its most significant mission.”
Which is? To provide “a system in which people can transact freely with each other, without the intervention of any intermediary,” he said. These various statements did not go unnoticed.
The timing was probably not ideal either. Bitcoin is a key driver of the cryptocurrency market, whose capitalization has now reached $2 trillion. And this rise is benefiting XRP.
On April 6, XRP is approaching $0.90. More importantly, the token has returned to its pre-crisis levels, i.e. prior to the SEC complaint. On April 2, XRP’s market capitalization reached $27.9 billion.
Since the beginning of 2021, XRP’s share price is up more than 150%. And this increase has accelerated sharply in recent days. Pointing out weaknesses or flaws in BTC could hurt the market and ultimately XRP.
Garlinghouse’s criticisms are in any case causing a reaction on social networks. In a series of tweets, the CEO of Ripple is trying to soften his words. The executive wants to mark his difference.
The environmental argument is often used to call for a ban on Bitcoin. “First of all, I am not saying that BTC should be banned at all! I am saying that we, collectively, can and should understand PoW’s carbon footprint,” Garlinghouse writes.
“We have the tools to make crypto 100% renewable AND reach its full potential. Let’s focus on solutions to change the opinion of Janet Yellen, Bill Gates, and countless others who have highlighted concerns about energy use instead of accusing me of FUD,” he continues.