"Nothing Better Than Ripple’s XRP”, Bitcoin Can’t Compete, Says TechCrunch Founder

  • Michael Arrington, founder of TechCrunch, said in an interview that Ripple (XRP) can process transactions more quickly and cheaply that Bitcoin (BTC) and Ethereum (ETH). 
  • Arrington has also launched XRP Capital, a $100 million crypto hedge fund.

Michael Arrington, the founder of TechCrunch, recently remarked that Ripple company’s XRP cryptocurrency may be technologically superior to Bitcoin (BTC) and Ethereum (ETH).

Arrington’s enthusiastic comments about XRP came during an interview with Block In Press, a South Korean blockchain firm. The TechCrunch founder noted that Ripple’s XRP was potentially “better” than BTC and ETH in terms of its ability to process transactions.

$100m Crypto Hedge Fund

Notably, Arrington has also launched XRP Capital, which is a $100 million hedge fund for strategic investments in various crypto and blockchain-related projects. According to the Stanford law school graduate, he opted to use XRP because he thinks that it can settle transactions more quickly and cost-effectively than the Bitcoin or Ethereum network.

When asked about other reasons why he chose XRP for his hedge fund, Arrington mentioned that:

We thought, in fact, we know XRP is the best for that first hedge fund firm to dominate in cryptocurrency.

“Bitcoin And Ether Can’t Compete With XRP”

He added that XRP’s “detractors” may argue its centralized and goes against the peer-to-peer electronic cash model of Bitcoin (BTC), but added that:

A lot of people in the U.S. just like it. And if you need to move some money like very quickly and very cheaply, there’s nothing better than XRP. Bitcoin and Ether can’t compete with that and it’s fantastic for that.

In his interview with Block In Press, Arrington also commented on South Korea’s business environment. He explained that the Korean market may be “a bit opaque” to Westerners, which can often make it challenging to work with local companies.

The TechCrunch founder argued, however, that  there is great potential for crypto in the $1.4 trillion dollar economy because 40% of Korean white collar professionals are invested in cryptocurrencies,

Arrington also believes there is likely no other country where digital currencies have been so widely adopted, which to him suggests that most Koreans are receptive to new ideas and may be more willing to experiment with crypto-related ventures.

Notable Bitcoin Trader and Whale Not Bullish on the Hyperinflation Narrative

Colin Muller

Highly regarded Bitfinex trader and crypto whale J0E007 is not banking on the hyperinflation narrative, which is a highly popular notion in the cryptoasset industry, implying it's a fairy tale.

Screenshot from 2020-05-26 13-23-22.png(source: Bitfinex pulse)

This narrative, exhibited for example here, proposes that the aggressive fiscal and monetary intervention on the part of many central banks around the world will eventually lead to sharp devaluations in the values of many fiat currencies—and most importantly of the U.S. dollar.

Propagation of this concept of rampant fiat inflation in the cryptoasset space is generally tied to predictions of a huge increase in the price and/or market capitalization of Bitcoin and other cryptos, although most focus on the flagship cryptocurrency.

A Little More Complicated

In his post, JOE007 linked to a recent report from Alhambra Investments, an asset management and financial research outfit.

The report details lead analyst Jeffrey Snider’s view that the dollar is not going anywhere in terms of demand, although definitely not by virtue of the competence of the U.S. Federal Reserve in handling the unfolding economic crisis lit by COVID-19.

Conceptually, first, any strong desire to hold expensive dollar liquidity buffers is drawn from serious mistrust of systemic conditions – including the central bank’s place in them. If you thought Jay Powell well prepared in advance with effective countermeasures standing at the ready, buffers of any size need not apply.

Jeffrey P. Snider

In short, Snider contends that the Fed under chair Jay Powell has not responded appropriately to the emerging crisis with “effective countermeasures at the ready”; and this bungling in turn has led to a higher international demand for US dollars in order to sit on a larger and safer cushion of “expensive dollar liquidity buffers.”

A complicated subject, to say the least. The upshot for J0E007 being that the dollar-collapsing narrative may have some big holes in it—removing the keystone of that popular Bitcoin use-case narrative.

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