Despite China’s strict regulations when it comes to cryptocurrencies, it is still the number one in terms of bitcoin mining. Chinese mining pools are said to control around 70% of Bitcoin network’s hash rate. And because of this there are those that appear to be concerned regarding the control of China when it comes to Bitcoin.
China has been known to ban crypto-related activities. It even recently announced that malls and hotels can no longer host crypto-related events. Now, it seems that US president Donald Trump is also concerned regarding the dominance of China in Bitcoin. And because of this, Ripple Labs executive has suggested that there should be an adoption of XRP by the US administration in order to offset the dominance of China in Bitcoin.
According to Cory Johnson who works as Ripple Lab’s chief strategist, “The White House in particular seems to be thinking about what it means to have 80% of Bitcoin mining taking place in China and a majority of ether taking place in China”. He added that “When you look at XRP, there is no mining, so from a foreign control aspect or from an environmental aspect, XRP is a very different beast, And in conversations we’ve had with the administration, they seems to get that and think that might matter”.
Cheap Electricity and Cold Weather
There are two primary things that crypto miners look for. China is a candidate for large-scale mining operators mainly because of its cold temperature and its cheap electricity. In fact, there are some miners from China that already opted to go for other countries mainly because of fear of being targeted by the government’s effort to shut down crypto-related activities.
Ripple Labs and Adoption
In the last months, Ripple has been in the news. Mainly, one of the reasons for its popularity recently is the xRapid. This Ripple product is said to be a game changer when it comes to cross-border transactions. There are already three companies that are looking to make use of Ripple. The xRapid has even been dubbed as the bridge between currencies and cryptocurrencies.
However, there are those that criticize Ripple. In fact, Ripple is dealing with a number of lawsuits claiming that it is actually a security and not a commodity. The US Securities and Exchange Commission didn’t mention XRP whether or not it is a commodity or a security because of this.
Ripple Labs control 60% of the entire ripple supply. And because of this, there are critics who believe that XRP isn’t exactly decentralized like any other cryptocurrencies out there.
Will XRP Be Adopted?
Johnson mentioned that “When I started to meet with people in government and regulators, I had very low expectations. He also added that “I have been truly amazed at the open-mindedness, number one. And number two, the smart questions even tough questions. There’s clearly a lot of homework going on”.
Adoption is an important part of today’s crypto world. Having a practical use for daily transactions can definitely increase the demand for a cryptocurrency. Can Ripple be able to clinch the US administration to make use of XRP?
