Phillip Nunn, the CEO of Blackmore Group, believes that XRP is a better bet than Bitcoin (BTC), even when he recognizes that XRP is more centralized than BTC.
In a recent tweet, Nunn explained that although Bitcoin is more decentralized than XRP, most of the mining activities take place in China, which can be dangerous for Bitcoin.
Bitcoin and XRP are two of the largest virtual currencies in the market. XRP has been growing in the industry as a fast and cheap coin to process cross-border transactions. There are several banking companies that are already connected to the Ripple Network and some of them could soon start using XRP to reduce costs and transaction times.
However, there are some critics that people make to XRP. In general, they consider that XRP is centralized and that this affects the credibility of the network. Crypto supporters have been always supporting decentralization rather than centralized systems.
Bitcoin has usually been considered as decentralized. Mining activities can be performed by every single person in the world with just some hash power. However, ASIC miners are very expensive and mining farms or rigs are sometimes difficult to be installed. This is why the mining industry has moved towards centralization.
There are large mining farms around the world that gather most of the power of the network, process transactions and earn the rewards provided by the Bitcoin network.
Nevertheless, Phillip Nunn believes that Bitcoin’s mining is at risk. Most of the mining activities on the Bitcoin network are performed from China and just by a few mining farms located in the country. If China decides to ban mining activities or just take the mining farms, the effect on the network could be devastating. China is not a very friendly country towards virtual currencies since they have been banned back in 2017.
80% of Bitcoin’s has rate is produced by six mining pools, five of these six are pools are located in China. That means that there are just a few hands controlling Bitcoin’s network. Something similar to what happens to XRP. However, he believes that XRP has many other advantages.
According to Ripple’s CEO Brad Garlinghouse XRP adoption continues to grow around the world. According to Bloomberg, Garlinghouse said that Ripple is working in order to solve cross-border payment problems. Furthermore, he said that the value of any digital asset will be based on its ability to solve problems. XRP could be embraced by institutions using the xRapid product released by Ripple a few months ago.
At the moment of writing this article, XRP is the third largest digital asset after being surpassed by Ethereum earlier today. XRP has a market capitalization of $14.9 billion and each coin can be purchased for $0.365. According to CoinMarketCap, Bitcoin is being traded around $3,850 and it has a market cap of $67.13 billion.