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A series of significant price jumps have made Bitcoin dominance to escalate steadily over the last six weeks.
Brad Garlinghouse reportedly revealed that during Fortune’s “Brainstorm” podcast held on November 19, Bitcoin is not competing with Ripple. He also said that he would continue holding a portion of the most popular cryptocurrency.
“I don’t view what Ripple is doing as somehow competitive with Bitcoin. I hold Bitcoin. I want Bitcoin to be successful. […] I do think all boats will rise,” Ripple’s executive said.
Bitcoin rally is usually beneficial for other cryptocurrencies in the bull market. Bitcoin’s sheer market dominance and wider appeal among investors make it an immense gravitational pull on other digital assets. In terms of the dominance rate, Bitcoin has a rate of 67.01%, implying that it occupies nearly two-thirds of the total cryptocurrency market cap.
CoinMarketCap data showed that Bitcoin’s dominance rate fell to a low of almost 32.8% during the January 2018 boom peak. BTC dominance can stay the same or go up even if the price of the altcoin declines. Ethereum (ETH) became the first rival of BTC, then, Litecoin (LTC) and XRP followed much later.
A series of significant price jumps have made Bitcoin dominance to escalate steadily over the last six weeks. XRP has also not been left behind as it also broke out this week, to the point that it registered a high of almost $0.3075, as per data from TradingView.
Regulations in Environmentally-Conscious Biden Administration
Garlinghouse’s shift of Bitcoin outlook to a positive one comes less than two weeks after warning corporations not to hold the digital currency. Coinspeaker reported that Ripple CEO thought it would be a costly mistake for corporations to convert cash to BTC with the incoming Biden administration. The new presidency seems to take a much stronger stance on environmental protection.
Publicly-traded companies will need to disclose all greenhouse-gas producing activities they undertake under Biden’s leadership. Square and MicroStrategy are some of the companies that would face the additional reporting requirements since they converted part of their balance sheet into Bitcoin. The reason for that is Bitcoin has a resource-draining proof-of-work consensus that continues to damage the environment.
Ripple CEO Says US Could Lose Crypto Race to China
For the past few months, Ripple was projecting a particular narrative that the two topmost crypto coins, Bitcoin and Ethereum, were under China’s control. He also reiterated that China is going ahead of other countries by coming up with its own central bank digital currency (CBDC). The chief executive explained that the fear-mongering Chinese Communist Party didn’t astonish him, but he was rather impressed with China knowing where the world is heading to and, therefore, making the right investments.
Garlinghouse said that the US has become “out of sync” with other major economies like the UK and Japan, which support various cryptocurrency innovations. Ripple’s boss suggests that the US is about to lose the crypto race to China.
‘Level Playing Field’ Is Necessary
Regarding performance, Brad stated that Ripple had exceeded its expectations for 2020, considering this had been a challenging year. The increase in XRP liquidity has been much higher than BTC on some days this year. Due to the current regulatory climate, Ripple CEO explained that there lacks a “level playing field” for all digital assets.
“Bitcoin was the only one with the hall pass, Ripple is [just] “fighting with one hand tied behind our back,” Brad Garlinghouse said on this week’s episode.
Bitcoin is a digital currency that facilitates payments for goods and services, while XRP is mainly known for its digital payment network and protocol.