Trump worried about China's Bitcoin Dominance – Betting on Ripple instead
China is by far the world leader when it comes to Bitcoin mining. Mining pools in China control more than 70% of the collective hash rate of the Bitcoin network. The hash rate is used to measure the processing power of bitcoins network.
Bitmain Technologies based in Beijing mines more than half the world’s bitcoins and many in the cryptocurrency and bitcoin industry have expressed concerns about the amount of control China has over Bitcoin.
U.S. president Donald Trump also appears to worry this, and a Ripple Labs executive has suggested that his administration has expressed interested in XRP (ripple) to offset China's strength in bitcoin.
Cory Johnson, the
chief strategist at Ripple Labs, revealed
White House is worried about what it means to have China mine 80% of
bitcoin, as well as the majority of ether.
XRP does not use mining, making it a different animal from an environmental and foreign controlled perspective. Johnson added that they have had meetings with the administration and that they seem to get that it is important.
China uses massive mining farms to manufacture most of the world’s cryptocurrency mining equipment and bitcoin. This endeavor is supported by cheap electricity prices in China.
On the other hand, Ripple Labs controls a full 60% of the ripple supply, and critics suggest it is therefore not decentralized like most other cryptocurrencies.
Bill Clinton, a former U.S. president, recently talked about the possibilities of cryptocurrencies and blockchain at Ripple's Swell event held in San Francisco. Ripple also announced it had signed up three financial services companies to use the new xRapid product based on XRP. This news increased the ripple price up by more than 100%.
Brad Garlinghouse, Ripple Labs CEO, announced that cooperative financial firm Catalyst Corporate Credit Union, as well as payment providers Cuallix and MercuryFX had signed up to use xRapid.
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Global banking giant Santander launched a blockchain-based application earlier. The cross-border foreign exchange was built by Ripple Labs and was designed to cut the costs and speed up sending currency across borders.
Many are enthusiastic about ripple's practical use case. It has already been proven to work with several of the world's foremost financial service companies and banks to improve clunky legacy financial systems by using the speed and efficiency of cryptocurrencies.
Johnson added that he had very low expectations when he started meeting regulators and people in government. What amazed him most was the open-mindedness and the smart, often tough questions he was being asked. This is a clear indication that there is a lot of homework being done.