The CEO at Ripple, Brad Garlinghouse, claims that institutional investors are increasingly interested in cryptocurrencies. This comes after a bull run experienced by the crypto market in the last few months. Apparently, Bitcoin’s price increase this year is not linked to retail investors but to larger players.
Ripple CEO Claims Institutional Interest in Crypto is Growing
In a recent tweet uploaded by Brad Garlinghouse, he stated that interest from institutional investors is skyrocketing. This is related to how cryptocurrencies work and the utility they offer. He shared the example of both Bitcoin (BTC) and XRP.
According to Garlinghouse, institutional investors are interested in Bitcoin as a store of value. At the same time, he stated that it can be a good hedge against inflation. BTC is the largest cryptocurrency in the world and there are going to be only 21 million BTC.
In his tweet, he has also stated that XRP is very useful in terms of speed, cost and scalability. XRP is the third-largest virtual currency in the world. The digital currency allows large financial institutions to reduce cost while handling cross-border payments.
XRP is fast to use, transactions take just seconds. It is cheaper than other virtual currencies. XRP transfers can cost less than $0.01 and be processed in less than 10 seconds. Furthermore, as the digital currency is being traded all over the world, it can also be used to source liquidity between two different fiat currencies.
By using XRP banks and other institutions can send a fiat currency to another country without having to wait for hours or even days. Moreover, the transfer is processed with lower risks of volatility and it is cheaper than other solutions.
Bitcoin has also been attracting a large number of companies over the last months. Institutional investors are trying to increase their presence in the crypto market. For example, Square and MicroStrategy acquired several millions of dollars of BTC.
Furthermore, PayPal and Cash App are allowing their users to get access to virtual currencies. This is increasing the pressure on the new Bitcoin issued. The BTC network is issuing just 6.25 BTC per block (every ten minutes). If the demand is larger than the offer, this clearly pushes prices up. In the future, as new users enter the market, BTC price could continue moving higher.
Currently, each BTC can be acquired for $17,950 and it has a market cap of over $333 billion.