Ripple CEO Criticizes Bitcoin Intensive Energy Prior to Biden’s Administration

| Updated
by James Lovett · 3 min read
Ripple CEO Criticizes Bitcoin Intensive Energy Prior to Biden’s Administration
Photo: Ripple

Ripple CEO Brad Garlinghouse believes that Joe Biden will take climate change issues seriously.

Brad Garlinghouse, Ripple CEO, recently asserted that his company is ready to align with the new administration policies once Joe Biden assumes the Presidency office.

Since the Biden administration taking office in January would be more environmentally-conscious, Ripple CEO advises corporations not to make the costly mistake of converting cash to Bitcoin (BTC). In a Monday tweet, Garlinghouse stated that the next President set to occupy the White House in January would take climate change issues seriously. According to him, the president-elect might demand greenhouse-gas producing activities disclosure from all publicly-traded companies.

President Trump, during his term, decided to withdraw from the Paris accord citing that the pact would be harmful to the US economy.

Square and MicroStrategy to Adhere to New Federal Crypto Rules

Square is one company that would have to adhere to newly formulated federal guidelines that would take effect when Biden is in office. Last month’s adding of 4,709 Bitcoin to its balance sheet made Square hit the headlines. The newly-acquired Bitcoin was no much, but it just represented 1% of the firm’s available cash on hand of $7.8 billion at the time it was purchased. For a long time, Jack Dorsey, Square’s co-founder, has been advocating for bitcoin and crypto to appoint where he allowed the company’s customers to make bitcoin investments via the CashApp.

In August, business intelligence firm MicroStrategy made a decision to convert part of its assets into bitcoin. The mid-cap technology company bought bitcoin worth $250 million (21,454 BTC) with the aim of making the cryptocurrency its new reserve currency.

Micheal Saylor, its CEO and one of the most vocal bitcoin advocates, made it clear that the company has been able to increase its holdings to 38,250 BTC (currently worth about $590 million). Although MicroStrategy can be considered one of the largest companies since it has a market capitalization of $1.5 billion, it cannot in any way be compared to Square, which has a market capitalization of $81 billion. In August, Garlinghouse really lauded MicroStrategy’s crypto investment strategy, but after the presidential election, he has now shifted his stance.

Ripple and Its CEO Keen on Environmental Sustainability

Ripple will be more concerned with the hotly debated “sustainability of money” narrative with the incoming Biden administration. The narrative was used to show that digital asset XRP is more superior to Bitcoin, which relies on unsustainable mining practices and resource-draining proof-of-work mechanism. In essence, the consensus governing XRP transactions in the XRP Ledger aims to solve the ‘double-spend problem that the energy-intensive proof of work mining usually exhibits.

Ripple has been claiming for a long time that its blockchain is better since, for every 1 million transactions, its XRP token could possibly be able to power 79,000 lightbulb hours as opposed to similar 1 million transactions that can power Bitcoin’s 4.51 billion lightbulb hours. As a result, the firm claims that its XRP is 57,000 times more efficient than Bitcoin in terms of energy consumption. 

Energy consumption is a critical factor when determining the adoption and usage of cryptocurrencies and related technologies. Hence, analysts can only be left to speculate whether Biden’s administration will take a keen interest in energy consumption when coming up with regulations surrounding the crypto industry.

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