Brad Garlinghouse strains the Bitcoin energy debate by saying that Ripple is a more energy-efficient alternative to the leading cryptocurrency.
Speaking to CNBC, Garlinghouse said Elon Musk’s U-turn on Bitcoin was appropriate. In addition, it was not surprising that the Tesla boss ultimately turned Bitcoin in view of its environmental characteristics.
Bitcoin Energy FUD
Two weeks ago, Elon Musk dropped the bombshell that Tesla would no longer accept Bitcoin because he feared it would be environmentally harmful.
A heavy sell-off followed, accompanied by more FUD, which resulted in a further drop in the price of Bitcoin. While there has been some rebound this week, BTC remains below the 200-day moving average, suggesting that bears are currently controlling the market.
Source: BTCUSD on TradingView.com
This event revived the debate on the environmental impact of PoW (Proof-of-Work) cryptocurrencies. Clearly put sustainability back on the agenda.
Bitcoin proponents, including Twitter’s Jack Dorsey, say Bitcoin can be made green over time. But Garlinghouse rejects this argument, saying that the facts and trends do not support this view, and Dorsey will have to “reassess” himself later.
“I think Jack Dorsey will have to look at the fact pattern and trend line over time and reevaluate himself.”
How ripple is different from others
Ripple prides itself on being a much more energy efficient platform than Bitcoin. Instead of doing wasteful PoW mining, the Ripple Ledger achieves consensus through a network of independent validation nodes. This process acts as a distributed economic system in which accounting information is stored.
Garlinghouse claims that Ripple is a hundred thousand times more energy efficient than Bitcoin and that most people grossly underestimate Bitcoin’s environmental impact.
According to the Ripple boss, 95 million acres of forest would have to be planted to offset the carbon costs of the Bitcoin network for a year.
“To offset that from a carbon production perspective, you’d have to plant 95 million acres of forest, which is basically the size of California.”
When Garlinghouse responded to claims that Ripple was behind the Bitcoin energy FUD, he laughed at the rumor that celebrities were talking about this issue, not just himself.
“Look, you have Bill Gates talking about all of this, you have Janet Yellen talking about it, you have Elon Musk talking about it.”
He added that if Ripple had such leverage and influence, it wouldn’t be in a fight with the Securities and Exchange Commission.
“If Ripple could control these people, we probably wouldn’t have an SEC lawsuit as an example. So it’s a real problem. We solve real problems by internalizing, understanding and addressing them.”
In any case, he implied that these types of discussions would solve the problem, rather than an attack on Bitcoin.