Altcoins like XRP and Ethereum are Still in the ‘Proving’ Phase – Mike Novogratz
Micheal Novogratz, the founder of Galaxy Digital and Brad Garlinghouse, the CEO of Ripple Labs were recently seen in a scuffle around the comparative gains on Bitcoin and XRP.
Novogratz notes that while XRP has a strong potential for gains, there are still hindrances to its’ path.
First, is the absorption of the 100 billion total supply of XRP. With around 57% (over 57 million) XRP still left to be off-loaded in the market, the selling pressure on the crypto could be tremendous. Novogratz noted,
The price of $XRP will be determined like all prices. If there are more buyers than sellers (and the company has a lot of control here) the price will rise.
Second, is XRP finding a ‘real and scalable’ use case. Currently, the independent success of Ripple Labs does not guarantee bulls for XRP. Novogratz says,
GLXY is a big investor in Ripple Labs. I would like to see them do well. @bgarlinghouse has done a great job as CEO. I commented the XRP tokens underperformed $btc last year because Ripple owns a lot of them. He added,
The company needs to distribute in a rational way at the same time building a real and scalable use case. I hope they do
Ethereum: A Trust Level
Gone are the days when altcoins threatened to usurp the market capitalization of Bitcoin. It has strongly positioned itself as a store of value. On the other hand, altcoins have still yet to find their niche.
All other crypto’s are venture bets and will only have lasting value if they become a product that is useful.
$eth might be the trust level people build on. If it does, it’s a great bet.
Nevertheless, there are many other altcoins which are competing with Ethereum to gain the status of the ‘trust level’ for building decentralized applications. These include EOS, Tron, Tezos, NEO and so on. However, Ethereum leads w.r.t. total market capitalization and even network effect.
The current year is particularly important for Ethereum [ETH] as the network makes transition to Ethereum 2.0 protocol. In a recent AMA session on Reddit, the lead developers for ETH notes with 95% confidence of a launch in 2020. The tentative plans for the launch of Phase 0 is around July 30, 2020 (the 5th anniversary of Ethereum 1.0).
Which altcoins do you think have a greater upside? Please share your views with us.
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