Home Altcoins News Finance Insider Criticizes XRP, Backs Bitcoin as the Future

Finance Insider Criticizes XRP, Backs Bitcoin as the Future

XRP

Rajat Soni, a finance industry veteran with over a decade of experience, has publicly criticized XRP, labeling it a “scam” and asserting that banks will never adopt the cryptocurrency. In a recent tweet, Soni explained his reasons for why XRP is unlikely to gain traction among financial institutions, claiming Bitcoin is the true digital currency that will shape the future of finance.

XRP’s Centralization and Risks

Soni’s primary critique of XRP revolves around its centralization, specifically how Ripple, the American payment company behind the cryptocurrency, controls a significant portion of XRP’s supply. Ripple owns approximately 50% of the total XRP supply, which, according to Soni, creates a risk of price manipulation. He argued that this centralization makes XRP an unattractive option for banks, who typically prefer decentralized systems to avoid being vulnerable to market manipulation.

Soni also suggested that Ripple could alter the XRP code and issue more coins if it chose to, which he believes further undermines XRP’s decentralization. He argued that this lack of true decentralization makes XRP unsuitable for banks, who would not want to rely on a currency that could be manipulated by a central party. Soni’s view aligns with his belief that the idea of banks adopting XRP is a misguided notion.

Regulatory Hurdles for XRP’s Price Growth

Soni also pointed to the possibility of a U.S. regulatory crackdown as a potential obstacle for XRP’s future growth. He referenced the significant price drop that XRP experienced after Ripple faced a lawsuit in late 2020. In his view, aside from the hope that banks would eventually use XRP, most investors aren’t genuinely interested in the asset. He also claimed that Ripple’s periodic sales of XRP have contributed to the cryptocurrency’s inability to reach new all-time highs in the last seven years.

Bitcoin as the “True” Future of Digital Currency

In contrast to XRP, Soni expressed his strong belief that Bitcoin is the true future of digital currency. He praised Bitcoin’s open-source code, which allows anyone to run the software, making it resistant to control or manipulation. According to Soni, Bitcoin’s decentralization, combined with the fact that its largest holders own no more than 5% of the total supply, prevents any single entity from gaining control over the currency.

Soni also highlighted Bitcoin’s growing adoption in regions where traditional banking systems are inaccessible. He argued that if Bitcoin were banned in one country, it would continue to be used and traded in others, demonstrating its resilience. In contrast, Soni claimed that XRP could lose significant value if it were banned in the U.S., as its reliance on Ripple and centralized control leaves it vulnerable.

XRP Community’s Response

While Soni’s opinions have fueled debates, it’s important to note that he has long been an XRP critic and a Bitcoin maximalist. Members of the XRP community have largely grown indifferent to his negative views, and there is a reduced effort to resist his narratives. Despite Soni’s stance, the XRP community continues to advocate for the asset’s potential, regardless of criticism from figures like Soni.

In conclusion, Soni’s dismissal of XRP and his unwavering support for Bitcoin highlight the ongoing debate within the crypto industry. While Soni’s arguments against XRP focus on centralization and regulatory concerns, the XRP community maintains faith in the token’s potential, especially as Ripple works to expand its use cases. Only time will tell which cryptocurrency will dominate the financial landscape in the years to come.

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Sakamoto Nashi

Nashi Sakamoto, a dedicated crypto journalist from the Virgin Islands, brings expert analysis and insight into the ever-evolving world of cryptocurrencies and blockchain technology. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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