- Ripple CEO Brad Garlinghouse is predicting a massive rally for Bitcoin and the entire crypto market caused by the inflationary policies of financial institutions.
- Garlinghouse reported an 80% to 100% increase in digital remittances during the crisis caused by the coronavirus pandemic.
Brad Garlinghouse, CEO of Ripple has made a bullish prediction for Bitcoin and the crypto market. In a conference shared via YouTube, Garlinghouse said the policy being implemented by the Federal Reserve in response to the financial crisis caused by the coronavirus pandemic will have positive implications for cryptocurrencies in the long term. In contrast, Ripple’s CEO believes that fiat money will depreciate:
I think the government stimulus now stands at about $3 trillion here in the United States alone. I expect it’s going to continue to grow and I think that, while probably necessary to prevent an even more significant macro economic calamity, it definitely is going to have an impact on the future.
It will, I believe, result in the debasement of fiat currencies. And you are seeing that in some emerging markets already, where the exchange rates have started to shift. But even here in the United States, it’s a factor.
Other personalities in the crypto space have shared this view. Among them is Bitcoin bull and investor Mike Novogratz who expects double-digit gains for BTC before the end of the year. BitMEX CEO Arthur Hayes also stated that the inflationary policy will drive Bitcoin at least to its all-time high of $20.000 before the end of 2020.
Garlinghouse also acknowledged that Satoshi Nakamoto‘s invention has fulfilled its purpose of being a safe asset in a crisis. In addition, he believes that Bitcoin will rise like gold did in the 2008 crisis:
It’s important to remember that Bitcoin was born in the wake of that global financial crisis [in]2008 and 2009.
Gold has been a safe-haven asset in lots of ways. It did drop during the beginning of the 2008 liquidity crisis, but then you saw it make a big run and I think we’re going to see a similar trajectory and a similar opportunity around the crypto market overall.
Ripple reports increase in remittances
On the other hand, Ripple’s CEO referred to the growth he has seen in digital remittances during the pandemic. According to Garlinghouse, while companies with physical operations have seen drops of 40%, Ripple has seen increases of 80% to 100%. Thus, Ripple’s CEO emphasized the advantages of XRP for fast and secure transfers, especially when compared to the traditional financial system:
We are going to continue to focus on how do we use XRP as a really effective tool for payments… We clearly are seeing the lockdown shelter-in-place dynamics have a big impact on cash-first remittance companies. So if you’re unable to go to a physical store, then obviously you should expect that to go down.
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But we’ve also seen significant increases in digital-first players. Various public companies have shared decreases of 30% to 40% in their cash-centric business, but we’ve seen increases of 80% to 100% in those that are digital-first, and that obviously has been very good.