June 12, TheStreet.com announced in its financial column that at Boston’s 2018 Stifel Cross Sector Insight Conference, Brad Garlinghouse, the chief executive officer of Ripple, said that China was indeed controlling Bitcoin.
In the discussion with Lee Simpson, an analyst at Stifel Tech, Mr. Garlinghouse touched on the themes of the crypto space and the technology of blockchain. Summing up to the idea that China is behind the authority of bitcoins, he said:
“I want to tell you a story that was intentionally overlooked, but worthy of attention. China really controls Bitcoin. More than 50% of the bitcoins are under the direct control of four Chinese miners. How can we be sure that China will not interfere? How many countries are interested in applying the currency that China controls? Until then it will not happen.”
Mr. Garlinghouse talked about his assumptions about the blockchain that underlies the Bitcoin and XRP. He mentioned that this technology will not have a destructive effect on the banking system, despite the fact that it will penetrate into the working core of our system. Garlinghouse also noted that his point of view is rather superficial.
Referring to XRP of Ripple, Mr. Garlinghouse called it as a successful regulatory asset of the digital format. He also stressed that the process of settling a transaction through BTC takes about 45 minutes, while XRP manages it in 4 seconds.
In the winter of this year, in February, the BitMex trading platform provided a report on the XRP token and Ripple, which stated that the structure of the consensus protocol of Ripple had proposed for consideration a new structure with a centralized type for its currency.
Based on the reported data, the BitMex research section tested the technology of Ripple. During the test, a copy of Rippled was used. 5 keys (tied to Ripple.com) that support the work of the node were launched from the server of Ripple. It was also reported that 4 of the 5 keys had to support the proposal so that it was recognized to be valid. The report also says that because the Ripple.com server was the source of where all the keys came from, it can be affirmed that Ripple is responsible for the complete control of the ledger movement and the system is indeed a centrally modeled one.
Employees of the University of Texas recently conducted a study in which it is assumed that the spike in price growth for Bitcoin in December 2017 is partly owing to Bitfinex and Tether. In the document, there can be found templated transactions that reflect the direct influence of Tether as a lever of price policy management for cryptocurrencies and a provider of price support. It is alleged that purchases through Tether were calculated after market declines and led to a significant growth in the prices for Bitcoin.