Ripple CEO Claims Bitcoin Is Under Control of Small Group of Miners From China
14 June 2018 - 10:45PM
ADVFN Crypto NewsWire
Ripple’s CEO Brad Garlinghouse said
that “Bitcoin is really controlled by
China,” speaking at the 2018 Stifel Cross Sector Insight Conference
in Boston, financial news outlet TheStreet.com reported June 12.
In a recent interview with Stifel Tech Analyst Lee
Simpson, Garlinghouse delved into a number of topics related to
blockchain technology and the crypto world, and
claimed that BTC is under the control of China, saying:
“I’ll tell you another story that is underreported,
but worth paying attention to. Bitcoin is really controlled by
China. There are four miners in China that control over 50 percent
of Bitcoin. How do we know that China won’t intervene? How many
countries want to use a Chinese-controlled currency? It’s just not
going to happen.”
Garlinghouse also shared his opinion about BTC’s and
XRP’s underlying technology, blockchain, arguing that it “will not
disrupt banks,” though “it will play an
important role in the way our system works,” however “it’s a
short-sighted view.”
Speaking about Ripple’s XRP, he described it as "the
best digital asset for settlement." Garlinghouse said that "Bitcoin
today takes 45 minutes to settle a transaction," whereas XRP
takes four seconds to settle, he claimed.
In February, trading platform BitMex released a report on Ripple and the XRP token,
discovering that the structure of Ripple’s consensus protocol
suggests a more centralized structure to their currency.
According to the report, BitMex’s research team
conducted an internal test with Ripple’s technology. The team
installed and ran a copy of Rippled, the node operated by
downloading five public keys from the Ripple’s server, all of which
were assigned to Ripple.com. Four of the five keys were reportedly
required to support a proposal in order for it to be accepted.
“Since the keys were all downloaded from the Ripple.com server,”
the report says, “Ripple is essentially in complete control of
moving the ledger forward, so one could say that the system is
centralized.”
A new study by University of
Texas’ staff released today, suggests that half of the BTC price surge in December last year was
explicitly due to Tether and issuer Bitfinex. The paper describes transaction patterns,
which show that Tether was “used to provide price support and
manipulate cryptocurrency prices.” It is stated that purchases with
Tether were “timed following market downturns and result in sizable
increases in Bitcoin prices.”
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